Making the minimum payments
In short, we like to call this program the "pay forever program". Consumers need to come to the understanding that when he or she has credit card debt, they are often lured into racking up that debt through introductory offers. After a short period of time, that consumer will then find themselves near the maximum allowed credit limit. Making the minimum payments on credit card debt is never a good idea, and it's important for consumers to try and find a way to pay the debt off in full every month. Now if we come back to reality, most consumers cannot do this but should be paying at least twice or three times the minimum payment.
Paying the bare minimum payment when it comes to credit card debt results in a vast majority going towards finance charges and other forms of interest. If you want to try and do credit card consolidation on your own, then that might be an option. But making the minimum payments by yourself is never really advised unless you can double or triple the minimums. When consumers pay just the minimum, they often get next months balance statement only to show that the balances never really went down. It's rather stressful and bothersome for consumers, but through programs like credit consolidation, consumers can lower minimum payments and interest rates without impacting their credit score.
3 Commonly asked questions about paying debt on your own
We have all tried to conquer our debt in way or another, but we usually do not get anywhere. This can be extremely frustrating when your only intension is to pay the debt that you owe while the creditors make it impossible to do so. When calling a creditor directly it is impossible to get them to understand that you need a little help by lowering your interest rates or minimum payments. You could be a loyal client for 10 years or a new client of 2 years it does not matter because creditors do not see their clients as individuals, they are simple just another number. That may sound a bit harsh, but it is the truth. Your story does not matter, what matter is that you pay your debts period without any problems. When problems arise the phone starts ringing and all they care about is where the money is. This is not only frustrating but many consumers feel defeated and embarrassed. There is nothing to be ashamed of we all have slip ups that we cannot avoid, but being hounded or ridiculed for it is wrong. Surely the debt that the consumers have accrued has always been meant to be paid, but some things are out of our hands and we should receive some sort of help until we are stable again and able to continue with our debt responsibilities. It is only natural to be angry and try to pay the debts on your own or to come up with a solution. Many consumers come up with different strategies when trying to pay off the debts on their own but they are not always good strategies. Some of the more commonly used strategies that are used but not very affective are listed below.
- One of the most popular options that consumers try is to transfer their high interest rate cards to a lowered interest rate card. This is effective for a few months but then the creditors opt to raise the interest rates right back to where they were or higher. This may be a bit helpful to those who just need some relief in order to get caught up, but they need to understand that paying the debts on your with this type of interest they will surely be in trouble again.
- The above also applies to calling the creditors directly in order to lower their minimum payment and interest rates. If the consumer is successful it will only be for a limited time and then they are back to where they started from. Some consumer may try to get a loan and pay all the debts and have one payment. Although this is more organized the problems are still there and the interest rates are still compounded daily. It seems there are no sure fire ways to get your debts paid off.
- The best ways to conquer your debt is to bring in someone who can go to bat for you. Remember why you want the help; high interest rates, high minimum payments, not seeing the principal balances going down these are all subjects that debt consolidation companies specialize in. Debt consolidation companies are able to give the consumer a professional, efficient outcome. Consumer do not want to come to an agreement only to find out that the agreement was not validated and their credit score is now harmed. Debt consolidation companies can give the consumer the added relief that the creditors will not go back on their word. Knowing that you have a reputable company to represent you will definitely give you the peace of mind that you deserve.
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