debt consolidation

Notes:
understanding debt ratios

Notes:
consolidation worksheet

Option #1: Pay Down One Card at a Time

• Is this the right option for you:
  this may be an ideal option if your total credit card debt is minimal and if you can budget enough disposal income to payoff your credit cards within 12-18 months.
  
  This option will give you the best credit rating protection.
  
  
• Start by listing your cards:
  open this window-calc and list each credit card that has a debt balance. Insert the balance amount with its respective interest rate (APR). Hit "Calculate" to total your numbers.
  
  Note the card that is charging the highest interest rate — this is the credit card balance that you will pay off first.
  
  
• Estimate your repayment schedule:
  open this window-calc to schedule an allocated amount each month that can pay down your selected high interest-rate credit card.
  
  Include in your budget plan the amount you will need to make minimum payments on all other cards.
  
  We have a section at our parent site SayPlanning.com on budget and spending plans: click here
  
  
• Reduce your monthly expenses:
  as you pay down your credit card, review our section on lowering your monthly bills in housing, transporation, living, recreation, and more.
  
  Click to view "lowering your bills"
  
  Your monthly cost savings can be used to pay down your credit card faster.
  
  
• Continue payoff:
  once you pay down your high interest-rate credit card, find the next highest interest-rate card and schedule a new repayment plan.
  
  Repeat these steps for each card — paying down the highest interest-rate card first, and on down to the lowest interest-rate card.
  
  
• Important note:
  be sure to go back and review Step 5 on credit card management techniques — you want to avoid getting yourself back in debt with your credit cards.

Additional Information about Credit Management at our affiliated site: SayPlanning.com

Notes:
understanding debt ratios

Notes:
consolidation worksheet

Option #2: Combine All Card Balances Under One Card

• Is this the right option for you:
  this may be an ideal option if you have significant credit card debt that can be paid off within a short period (12-24 months) and if you maintain a good-to-better credit rating
  
  for information about your credit rating: visit our affiliated site at SayPlanning.com
  
  
• Find transfer balance programs:
  if you have a good credit rating, card issuers will solicit you with attractive credit card consolidation (transfer balance) programs.
  
  You may also contact your current credit card issuer about transferring and consolidating other credit card debt.
  
  Inform them that you are shopping to consolidate all or part of your credit card debt under one card — if your credit rating is good, they will want to keep you as a customer.
  
  Find the transfer program that offers a super low interest rate at transfer terms of 6 or more months. Anything less than 6 months is not worth the trouble.
  
  
• List your cards:
  open this window-calc and list each credit card that has a debt balance. Insert the balance amount with its respective interest rate (APR). Hit "Calculate" to total your numbers.
  
  
• Payoff your cards:
  take the transfer program that offers the best terms — use the program's transfer checks to payoff those credit cards listed in your calc sheet that have the highest interest rate charges.
  
  If your total credit card debt exceeds the transfer program's credit limit, you may need to use a second or third balance transfer program.
  
  
• Schedule your pay down amount:
  open this window-calc to schedule an allocated amount that significantly reduces your consolidated amount during the transfer period.
  
  
• Maintain terms:
  since most transfer programs offer card consolidation terms of 6-12 or more months — significantly lesser time than what you may need to payoff your card debt — you may need to play the transfer game when one program ends and another begins.
  
  Keep note of other transfer balance offers that come in the mail — hold on to those offers that carry attractive terms.
  
  Be careful not to jump to another transfer program within short periods. Every time you sign up for a transfer program, an inquiry is made to your credit report. You want to limit credit inquiries to "one" inquiry every "six or more" months.
  
  See our discussion on maintaining a good credit rating at our parent site SayPlanning.com: click here.
  
  
• Payoff amount:
  if your budgeted monthly payment does not payoff your credit card debt with 12-24 months, you may need to consider a debt consolidation program under Option 3.
  
  
• Try to lower your other living costs:
  as you pay down your credit card, review our section on lowering your monthly bills in housing, transporation, living, recreation, and more.
  
  Click to view "lowering your bills"
  
  Your monthly cost savings can be used to pay down your credit card debt faster.
  
  
• Important note:
  do not use the credit card that has your transfer balance for any credit card purchases — many consolidation programs will waive the 25-day grace period on purchases and instantly charge interest on credit card transactions.
  
  Be sure to go back and review Step 5 on credit card management techniques — you want to avoid getting yourself back in debt with your credit cards.

Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com

Notes:
understanding debt ratios

Notes:
consolidation worksheet

Option #3: Consolidate Your Credit Card Debt

• Is this the right option for you:
  this may be an ideal option if your total credit card debt is significant and if you need a consolidation program with payoff terms of 3 years or more.
  
  This option is ideal for those who need to consolidate other loan debt.
  
  By consolidating your debt under repayment terms of 3 or more years, you basically lower your monthly payment by extending your repayment period.
  
  This option will review debt consolidation programs using the security of your home (home equity consolidation loan).
  
  For those who don't have a home, or for those who lack enough equity to consolidate debt, review unsecured debt consolidation programs: link to Debt Info.org
  
  
• Home equity option:
  by using the security of your home, you can secure a home equity loan at low rates with repayment terms of 5 or more years. You can use this loan to consolidate your credit card and other loan debt.
  
  This option allows you to setup a repayment plan with extended terms that can significantly reduce your monthly payment (depending on the amount being consolidated).
  
  You can also pay extra each month to quickly payoff your consolidation loan.
  
  
• Calculate amount to consolidate:
  link to our Debt Consolidation Worksheet and list each credit card that has a debt balance. Insert the balance amount with its respective interest rate (APR). Hit "Calculate" to total your numbers.
  
  
• Set repayment plan:
  use the debt consolidation worksheet to calculate your monthly payment
  
  Note that your payoff term will be anywhere from 5- to 7-to 10-years or more.
  
  Calculate your estimated monthly payment; note the monthly savings you can anticipate by consolidating your debt under extended repayment terms.
  
  Run different repayment scenarios to design a payoff plan that works for your.
  
  
• Home equity review:
  link to our affiliated site for detailed information about home equity loans, rates, benefits, terms, and a network of home equity lenders that service your area:
  
  http://www.YourEquity.com
  
  
• Lower your monthly costs:
  as you pay down your consolidation loan, lower your monthly bills in housing, transporation, living, recreation, and more.
  
  Click to view "lowering your bills"
  
  Your monthly cost savings can be used to pay down your debt faster.
  
  
• Non-home equity option:
  if you don't have a home that can function as security for debt consolidation, review unsecured debt consolidation options:
  
  link to Debt Info.org

Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com

Notes:
understanding debt ratios

Notes:
consolidation worksheet

Option #4: Seek Debt Counseling Services

• Is this the right option for you:
  use this option if you find yourself unable to repay your current debt balances and want to avoid bankruptcy.
  
  This may be the right option if circumstances such as unemployment, loss of income, or other unfortunate event prevents you from repaying your debts.
  
  This option is also recommended if you have collection agencies threathening action. Counseling services can advise and protect you from adverse action.
  
  
• Credit counseling services:
  credit counselors will be able to discuss your situation with your debt lenders to either forgive part of the debt or structure a repayment plan that fits your budget.
  
  They will also work with you to establish a monthly repayment plan that fits your budget.
  
  
• How the program works:
  you first complete an enrollment form that authorizes the credit counselor to discuss your situation.
  
  click here to start that from careonecredit.com — one of the largest non-profit credit counseling services in the industry
  
  the credit counselor will contact your creditors to negotiate a repayment plan that is significantly less than you currently pay — why? creditors will welcome partial payment rather than no payment.
  
  credit counselors will then setup a monthly repayment plan that works for you
  
  you will then make your monthly payments to the credit counselor who in turns divides the payment among the creditors based on the negotiated repayment amount
  
  in most cases, creditors will inactivate your credit cards to avoid charging additional debt
  

• Find credit counseling services:
  

  Need Debt Relief now? We can help.
  Get free, non-profit, 100% online debt relief.
  Click here for more info
  
  National Foundation for Credit Counseling:
  http://www.debtadvice.org/
  

• More information about debt management:
  view our center on debt and budget management at our parent company SayPlanning.com.
  
  Click here
  

Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com