Debt relief has got many flavors.
Bankruptcy, debt settlements and debt consolidation are all contributing towards eliminating your Credit card debt.
However you need to choose the solution that is specifically for you.
In a debt consolidation you go in for a balance transfer to one Credit card.
All the other credit cards are closed.
Thereafter you will be making only one payment to your creditors.
The consolidation loan could be designed to be paid off within 4 to 5 years.
However many consumers are apprehensive about going in for a debt consolidation.
Here are some fears that could loom large in the minds of the consumers: •A consolidation loan is also getting in debt.
Some people may question the wisdom of incurring fresh debt when you are already struggling to clear your Credit card debt.
Your monthly repayment capacity will matter in deciding the period of your repayment of consolidation loan.
•Most of your existing Credit card This means that you will have no card left for emergencies.
•The consolidation loan may reduce your rate of interest but may spread over a longer duration.
This also means that you will paying back more in the longer run.
Is it really worth increasing the tenure and paying a bigger amount at the end of the day.
However these fears are more than offset by advantages of the consolidation.
Imagine there will be no more calls from the creditors.
You will have to make only one consolidated payment.
No more worries about the calls and no more stress.
You will also have monthly payments that are well within your reach.
A consolidation exercise if particularly beneficial to those who have 4 to 5 credit cards and are unable to manage them.
The consolidation exercise will give you the flexibility of handling your debt based on your monthly repayment capacity.
So those willing to remain in debt longer at softer rates of interest should go in for a consolidation.