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Credit cards tempt and spoil other people to keep buying things even if it is already out-of-hand. This causes many credit card users to go neck-deep in debts. However, nowadays, there are many remedies for overflowing and almost helpless credit debts especially for those who cannot stop the urge to splurge. One option is the credit consolidation and you do this by applying for different companies that offer the said services. There are different versions of this. One is credit card debt consolidation which differs a lot from the usual debt consolidation loans. It is for the reason that the former does not involve money lending while the latter does. Credit consolidation programs are concerned primarily in dealing with credit card companies for the reduction of debts such as the interests, monthly payments, balances, etc.


credit card consolidation


This system works as much the same way as debt consolidation programs. In many cases this process has been proven useful and effective especially for consumers who wanted debt relief badly. Companies offering these programs work as mediators between their clients and their creditors and regulate the flow of transaction form one party to the other party. They were the ones who negotiate to decrease interest rates, other fees, and overall payments for their clients. They were also the ones who try to bargain directly to the creditors to consolidate credit card debt for their clients to gain access to lesser interest rates and other charged fees.


Using credit consolidation will include choices like debt settlement or debt negotiation and credit counseling or debt management. Debt settlement is an option to further reduce debts which works by holding negotiations to decrease the principal balance loaned by the client from its original mark down by a certain proportion of 40 to 60 percent. This setting is the most preferred because it is the fastest and most efficient option. Credit counseling is applied when the transactions involves the interest rates implemented by the credit card companies themselves the plans of which usually take about 4 to 5 years. Other credit card options include debt consolidation loans which allow the clients to loan and use it to pay their credit card balances. Typically, these loans require collateral like houses, cars, or any valuable asset. Credit card balance transfer option on the other hand takes the customers’ credit card balances off the original account and creates a new card with a lower interest rate or monthly payment to which these balances would be transferred. This allows the customers to save more money by paying lower overall credit charges.


credit consolidation