Debt consolidation can be such a relief when you lose your way amidst your debts. Credit card debts are especially difficult to pay off, since they involve a higher rate of interest than your other loans. Besides, once you get trapped into several such bills, it will take a long time to get rid of it all. At this point, debt consolidation or credit card consolidation comes to your rescue.

A credit card consolidation just combines all your debts together, so that you won’t need to make separate payments on each one of your credit cards. You’ll have the choice of making an affordable single monthly payment towards your debts, and your debts get paid off gradually. You can also free up your cash in hand, eliminate your debts at your own pace, and avoid the constant harassment by your creditors.

Well, there are 2 ways to choose from, if you want to pay off your credit card debts through consolidation.

2 Ways to consolidate credit card debts

You can consider the following ways to consolidate your credit card debts:

1. Credit card consolidation program – It is usually offered by the credit card consolidation companies. The consultants analyze your financial condition and prepare a payment plan for you, after you enroll into the program. They then negotiate with the creditors to reduce the interest rates charged, or to ignore the penalties and late fees. You only make a single consolidated payment each month to the company, and it gets distributed amongst your creditors. Timely payments ensure that you don’t default on your credit card debts.

2. Balance transfer method – You can take out a low or 0% interest credit card and transfer all your balances into it. You’ll then need to make monthly payments on that balance transfer credit card only. The benefit of this type of credit card consolidation is that your monthly payments on your new debt gets reduced, since you’ll definitely choose that credit card company which offers you the lowest interest rate.

How a credit card debt consolidation affects your credit score?

Unlike debt settlement, credit card consolidation doesn’t harm your credit score, since your debts get paid off completely. It will take a considerable amount of time to eliminate all of your debts through credit card consolidation. However, your account status will show ‘paid in full’ after all the debts are paid, which is bound to impress your creditors. Besides, while you continue with the credit card consolidation, your creditors take note of your honest initiative to pay off your debts. Your future chances of obtaining a loan will improve as you’ll be marked as a responsible debtor.

Credit card consolidation will thus prove to be beneficial, if you want to get rid of your credit card debts effectively. However, consistency in the monthly payments is a must, even after you consolidate your debts.

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via wikipedia

The zero credit score credit cards are those cards that are best for people with no credit history or are on limited credit. Having a credit card, for some reason, has become compulsory to many people. Nonetheless, not all people use cards or cannot use such cards. For the people on the latter category, you can apply for the no credit CCs and this can help you in taking advantage of the benefits that they can offer you.

The zero credit score credit cards are also known as prepaid cards. They are secured cards and can be used the same way as a traditional card to pay for purchases, to reserve for airplane seats or hotel rooms. These can be considered as training wheels for those who are yet to use credit cards. You might also want to use this for your kid’s sake especially for those entering college. Since they will be spending quite a load of cash just for education, it is necessary that they are able to efficiently use the resources given to them. The zero credit score credit cards can help in preventing excessive cash expenditures.

Now, you might say that this is no different from the debit cards. The debit card is directly linked to your bank and therefore, anything that is within that account can be accessed. It is not good to use the debit card for leisurely purposes as it could deplete your resources very well. The zero credit score credit cards are loaded by paying the amount to the credit card company in advance. Therefore, the only amount that you can use is the one that you specified. You cannot go overboard that since this is not an unsecured card. Therefore, there are no obligations, no interest rates and no worries about debt.

Of course, there are some things to be aware of when using these cards. There could be annual and even monthly charges to maintaining the zero credit score credit cards. You might even pay fees for withdrawing money through the ATM. There are also possible fees when you make purchases. Before you sign up for the zero credit score credit cards, you have to review the terms and conditions for any kind of card, no matter if they are known or no-name. As with choosing any other account, it should benefit you at the end of the day and not the other way around.

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If you do get several of these offers in the mail, make sure to properly dispose of them if you’re not planning on joining.  Don’t just tear them up and throw them away.  Someone else can still come along and get that credit card under your name.  The best way to dispose of these applications is to run them through a paper shredder.  If you don’t have a shredder, tear them up and throw them away in several trash cans.  You might even flush a few key pieces down the toilet.

If you’re interested in getting a descent card, check out a few sites online.  You might be able to get great credit card special offers right from the company’s website.  Again, read all there is to find before signing up and do a few comparisons between all the major companies.  You’ll be surprised at the offers you can find through online venues.

Remember, not all credit card special offers are the same.  If you do a little research and properly dispose of the ones you’re not interested in, you can save yourself a lot of money and possibly even your identity.

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