Free Credit Card Debt Consolidation

People are beginning to change the way they think about money. Free Credit card debt consolidation and dealing strictly in cash are two of the new the most common changes that people are making. Truthfully, the only free method of paying off your credit card debt is doing it on your own.
A debt consolidation loan will require you to pay closing costs, but you may be able to have them added to your loan. But, if you have debt it is not in best interest to payoff debt with debt. Most debt consolidation loans are secured with your home. The bad news is that your home can be foreclosed on if you default on the loan. If you look at the recent economy, taking out a home equity loan a few years ago may have put you upside down in your home loan. This is a terrible position to be in.
A debt settlement company will charge you based on the amount of money they are able to save you on your credit card balance. The fee usually ranges from 15%-25%. So, if they save you $2,000, you will be paying from $300-$500 for this service with a net savings of $1,500-$1,700. But, here comes the downside. You will have to pay taxes on that same amount and this transaction will not be reported favorably on your credit.
Credit counseling service is another option you have and for most people that want help managing their debt this alternative is best. Your interest rates will be reduced to below 10% in most cases. If you are currently paying over 20%, this is huge and will save you thousands of dollars and several years. Get onto any credit debt calculator and you will be amazed at what an interest rate reduction can save you. This service usually runs you about $30-$50 a month. One of the big advantages is making only monthly payment to make all of your credit card payments.
Although these are not free credit card debt consolidation options, they are going to cost you less than what you are paying now. Some debt relief methods are better than others and not all will work for all situations. It will depend on your personal debt situation which debt relief solution will work best for you.

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