Using credit cards to consolidate your debts is not as
effective as debt reduction. Credit cards often have high rates
of interest, and will often lead you into deeper debts. In fact,
credit cards are one of the leading causes that debtors seek out
debt consolidation solutions.
Debt reduction means that you are working to decrease your
bills, not add or keep the bills in existence by using another
source to pay off the debt. Therefore, instead of considering
credit cards as a source for debt consolidation, you must find a
way to reduce your debts.
Let's say you owe money for your mortgage, car payments,
insurance, utilities, and other bills that add up to $1200 per
month. Now, is there a way we can reduce this amount?
Absolutely, but can we find a mortgage that will refinance our
loan and help us to combine our monthly bills into one payment?
Yes. There are loans available that offer cash back,
underpayment, and overpayment plans; as well as loans that will
wrap your bills into one, combining the bills and adding them to
your monthly installment.
Do not misinterpret this: your utilities are your
responsibility, but for the most part, your car payment,
mortgage, and any credit cards or other loans will be rolled
into one monthly payment. Therefore, if you're paying out of the
$1200 up to $800 per month toward car payments and mortgage, you
may find a lender who will reduce this amount to $600 more or
less per month.
Furthermore, if you land a loan that offers cash back, you can
use this money to payoff your debts.
Finally, utilities can be reserved and grocery bills can be
reduced. In addition, insurance coverage can also be reduced.
Therefore, debt reduction is wiser than credit card debt
consolidation in the long run.
Talbert Williams 1DebtFreedom.com All rights reserved.
About the author:
Talbert Williams offers debt consolidation, debt reduction,
credit card debt referrals and advice. For more information,
articles, news, tools and valuable resources on debt solutions,
visit this site:
http://www.1debtfreedom.com
