Consolidating Credit Card Debt

I remember when I was in a world of trouble just after college with a lot of high interest credit cards, which I always paid on time, but which I kept charging up, being new to credit cards and thinking it was almost like free money.

It wasn’t until after college that I truly realized this “free money” was actually a debt collar around my neck that would take years to pay off – something like 30 times the amount I actually charged on them for things like car repairs, meals, groceries and all kinds of other stuff college students can’t afford, was what I would actually end up paying in the end.

The true reality of it hit me, and I realized that I either had to get one large, low APR credit card and balance transfer everything over to that card, or I would end up having to get a debt consolidation loan. What I ended up doing actually was going to a debt management counselor, and getting a consolidation loan for a decent APR, which had me paying off all my cards, with a total of around $10,000 in debt, in five years rather than the thirty or more projected if I made the minimum payments!

You see, good credit cards are truly a great thing. If you know how to use them correctly. You MUST adopt a strict regimen of paying your credit balances off every month, or maintaining them so low that you never truly accrue a large balance if you are to have any hope of being debt free in life.

Consolidating your credit debt is a big decision. You should probably talk to a qualified professional in debt management or consumer debt crisis before you make any major decisions, so that they can take a look at every facet of your financial reality and make a decision or at least present you with the best decisions so that you can make the best one for your situation.

I made the decision to do it with a credit card consolidation loan because it was the only way I could see clear to actually get it all in one lump sum payment, where they would be able to help me pay it all off in a set amount of time, rather than me flailing to pay them every month, and still being discouraged when I saw that interest piling up every month, even though I wasn’t even using them any more!