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Credit card debt consolidation is amongst the most sought after financial repair services and one of the most readily available financial services. Credit card debt consolidation can be done by an agency and it can also be done on your own.

Many people are unaware of both options. Furthermore many people are unaware of how easy it is to consolidate their own credit card debt. Many credit card debt consolidation agencies mislead consumers into believing that there is a mandated fee to consolidate their credit card debt with their creditors.

So what exactly is credit card debt consolidation?

Credit card debt consolidation is the process of re-organizing your debt into options that are more manageable for the debtor. During this process negotiations are made to reduce the debtors debt based on the amount of debt and the length of time the debt has gone unpaid.

There are many agencies that consolidate credit card debt for those who are unsure of how to do it or are unaware it can be done on their own.

Credit card consolidation agencies can negotiate and consolidate your debt for you, however they often times dont advise clients of all of their options. Many clients are unaware of exactly how the consolidation and most importantly, the negotiation process works.

The primary driver of consumer deceit amongst credit card debt consolidation agencies is the requirements for credit card consolidation. Since credit card consolidation requires negotiation of your debts, this process is only available for debts that have been unpaid or are delinquent for six months or longer.

If your credit card debt has been unpaid or delinquent for less than this length of time, credit card consolidation agencies will often times require you to stop making payments on debts that do not meet that criteria.

For most people, its exciting to hear that reducing debt means you must stop making payments. However, this is adversely effective. If you have credit card debt you would like to consolidate the first thing you need to do is organize your debt between debt that has been delinquent for six months or longer and debt that is currently revolving. (still being paid)

You then need to add up your delinquent debt of six months or longer and multiply the total debt by 25%. 25% of your debt is the amount that most creditors will allow you to pay to relinquish the debt. If you work diligently with your creditors, they may be willing to remove your debt off of your credit report after it has been paid.

If youre ready to and able to begin paying off delinquent and past due debts, be sure you do everything you can to remove the debt from your credit report. Ive negotiated my debt so well with credit card companies, that Ive been able to re-obtain credit cards with the same credit card companies that I previously had collections accounts with. Thats how clean I wiped my credit. It was so clean that my previous creditors had no idea that I had previous debts with them.

Many people are misled to believe this can only happen after seven years when your debts fall off of your credit. This process took place within two months of paying off my debts and it can work for you as well, it just requires you to negotiate with your creditors and to only accept yes for an answer. Yes to removing your debt!

Michael has published a guide to credit card debt consolidation and personal finance. Check it out at http://www.chaoticconformity.com

Credit card consolidation is the latest trend amongst infomercials, commercials, financial planners, and so on and so forth. Many consumers wonder is there a such thing as credit card consolidation and if so is the process legitimate and does it provide results?

Credit card consolidation is a real legitimate process, however many of the companies who perform this process do so in ways that negatively impact your credit score. They also typically charge more for their service than your debt is actually worth, and they package their sales pitch by stating things that are simply not true.

Heres the truth about credit card consolidation companies:

Credit card consolidation companies charge monthly fees to consolidate your credit (re-organize) and negotiate your debt with your creditors. During and after the process is complete, you are required to pay the debt consolidation company a monthly fee. They then provide a percentage of that monthly fee to go towards paying off your credit card debt.

The problem with these companies is that they are not doing something you can not do on your own. It is very easy to consolidate your credit card debt without the use of a third-party service, business, or company.

Heres how you can consolidate your credit card debt on your own:

You will need to obtain a copy of your credit report with all three bureaus. (Experian, Equifax, Trans Union) Upon receiving all three reports, you need to look at all of your credit card debt that is six months or older. All of this debt is typically eligible for consolidation. After youve gathered and written down your debts that meet those criteria, you will also need to write down the phone numbers of those creditors. The next step is to call your creditors and negotiate your debt. This is the fun part!

When your speaking with your creditors, let them know youre ready to pay off your debts today but you can only pay 25% of the total debt amount. The older the debt is, the more likely they will be to accept your percentage negotiation.

The next step is to go back on your word just slightly. At this point, youve built up interest and anticipation in the representative your speaking to and they are excited because they think they are about to collect debt and get a commission from you. Before you whip out your debit card or check book to pay off the debt, tell them you would like the debt removed from your credit report after successful payment and upon written notification of such, you will immediately call back the representative your speaking with to make the payment with them.

If they tell you they cant remove the debt from your credit report, tell them you will not be paying off the debt. At that point they see the sale going away, so theyll be more than likely willing to work with you.

If they will still not work with you, youve probably gotten a representative thats just having a bad day. In that case hang up and call back and speak with someone else. If youre second attempt still doesnt work, demand to speak with a manager. This typically gets the job done.

Michael has published a guide to credit card consolidation and personal finance. Check it out at http://www.chaoticconformity.com

The abundance of credit provided to individuals in the 1990s has created a climate of borrowers present day that are overleveraged, without proper cash flow and sinking jobs and careers.

There are many ways being advertised to get credit card debt help and relief, but many of them do not work or they provide temporary benefits, but long-term problems.

In the economic climate of today, there are many companies primarily debt consolidation firms that claim to provide services to aid their clients in credit card debt relief. Heres how debt consolidation works:

Debt consolidation agencies require clients to go 6-12 months without making payment on their debt. After this time period has elapsed, the agency will contact your creditors and negotiate your debt at a reduced rate. After a settlement has been negotiated, the client is required to make monthly payments to the debt consolidation agency. The amount you pay is based on your new negotiated debt, and is supposed to be less than the amount you would have been paying had you continued paying your monthly credit bills without the debt consolidation plan.

Heres the problem with debt consolidation agencies:

In order for them to negotiate the lower rates, the debt consolidation agency requires you stop payments in order to leverage their ability to get you a reduced rate. Your creditors are willing to reduce the rate at this point because they are distressed in their attempt to collect your debt, and would much prefer to get something than nothing. The problem with this course of action is that during those 6-12 months youre not paying your bills, your credit suffers. This can cause interest rates on your home and auto loans to increase, as well as auto insurance premium increases.

Debt consolidation is amongst the most popular route many people are mistakenly taking to fix their credit. As stated above the long-term negatives do not outweigh the short-term positives.
If you really want to get credit card debt help, you need to do one or all of the following:

Negotiate a lower interest rate:

Negotiating a lower interest is one of the easiest and most over-looked options to credit card debt help and relief. If youve been responsible about making your monthly payments and have consistently been paying at least double or more of the minimum payment your credit card company will more than likely be willing to negotiate a lower interest rate. There are many agencies that sell this service such as debt consolidation agencies, but they dont tell you that you can do it on your own.

The primary benefit of a lower interest rate is that more of your monthly payment is applied to your principle balance as opposed to interest payments therefore allowing you to pay of your credit card debt faster. If you have credit card debt in excess of $5,000, negotiating your interest rate is great because the savings in interest payment will become visible a lot faster due to the amount of your balance.

Balance transfer:

A balance transfer is not an option that is the most responsible, because your essentially robbing Peter to pay Paul, however its all about numbers. If your credit card debt is high but your credit score is in the mid to upper 600s you should be able to obtain more credit cards. If this is the case, a balance transfer is a great option for credit cards with high interest rates.

For example, if you have a current credit card with a 23% interest rate and you can get approved for a credit card with a 10% fixed rate or 0% introductory rate, you could then do a balance transfer and transfer your high interest credit card debt to your new low interest credit card. You will see your principle balance drastically drop since more of your monthly payment is being applied to the principle.

Non-profit agency representation:

Non-profit agency representation is for individuals in circumstances who were legitimately taken advantage of by a creditor and they can provide proof in the terms and services of the creditors statements. This is a far stretch for most people and non-profits are very picky about who they represent since many of these cases do not get awarded in the debtors favor.

Michael has published a guide to credit card debt help and personal finance. Check it out at http://www.chaoticconformity.com

Credit cards have excellent advantages. They allow you to build credibility, which when done responsibly allows you to purchase major investments such as vehicles and homes with low interest rates.

But what happens when youre in credit card debt. It can often times feel hopeless. In that case, you need credit card debt solutions. There are many ways to begin the process of cleaning up your credit card debt and finding solutions.

If youre struggling with credit card debt as many people are, one of the following solutions could be what youre looking for.

Pay down your balances:
This is the part many people dont want to hear but its the truth. Paying down your balances is necessary for getting out of credit card debt. Many people looking for credit card debt solutions think there is some way to get rid of credit card debt without paying off their balances. This is simply not true, however there are ways to get out of credit card debt if your account has become delinquent. In this case, you must negotiate with your credit card company.

Pay your cards appropriately:
This is a tactic that many people dont think about but is the most effective way to reduce your credit card quickly and boost your credit score. If you cant pay off your balances in full each month, you need to make higher payments on your cards with the highest balances. When paying their credit cards, many people add up the total amount due for all credit cards combined and spread the money across their credit cards evenly. This is completely wrong. By paying a higher amount on credit card bills with the highest interest rate, you will be eligible for interest rate decreases, an increase in credit limit, and an increased credit score.

Negotiating interest rates:
Many people are paying outrageous interest rates and have know idea that they may be eligible to reduce their interest rates with a simple phone call. If you havent missed a payment within a year and have at least paid double your minimum monthly payment for a year, you are more than likely eligible for an interest rate reduction. Its not something your credit card company will do automatically. However all you need to do is call them and more than likely they will be willing to reduce your interest rate. You will be shocked at how willing your credit card companies are to work with you to reduce your interest rate. You can have your interest rate reduced anywhere from 2-5% depending on the current rate and your payment history.

Reducing credit card debt isnt as difficult as it may seem. It just requires paying off balances appropriately.

Michael has published a guide to credit card debt solutions and personal finance. Check it out at http://www.chaoticconformity.com