Credit Debt Consolidation - Manage Your Cards Even When the Going Gets Tough

Feb. 25, 2010 - PRLog -- What are the benefits of having a balance of $5000 to $6000 on two different and separate credit cards as compared to having a balance of $500 to $600 on 10 different cards? In the event of a default, the credit card issuer will levy late fees and other penalties. Normally, this fee is charge as a percentage of the total amount owed. Had this been the case, it would not have made any difference whether you owe $500 on your card or whether you owe $5000.

In both cases, the penalties shall be charged as a percentage of the total amount owed. The money paid as charges would remain the same. However, most credit card issuers also charge a minimum penalty. The charges will be x% of the amount defaulted or $25 whichever is higher. This means that default on 10 different cards will result in fees and charges in excess of $250. On the other hand, if you skip payment on the two cards, the overall charges will be a lot lower and manageable.

This may seem like a very odd benefit of consolidation of credit cards. Is it not one's duty to pay credit card dues on time? Yes. However, one must be pragmatic and sensible as well. In today's recessionary times, you may be left with no alternative but to skip credit card repayment to manage some other financial emergency. Your employer may pay salary late or some urgent house repair may crop up. Considering all this, it is best to plan for non repayment of credit card debt as well.

Of course, the other benefit of employing a credit consolidation expert to help you out is always present. Your expert will negotiate with the credit card issuers and convince them to give maximum discount possible in exchange of the lump sum repayment. Most of us are in such a hurry to repay the debt that we often undercut our own negotiation position.

If you employ the right person, then the amount spent as fees will be very low and you will still end up with a profit on the total amount consolidated. Of course, the convenience and comfort of concluding the consolidation without having to worry about formalities and technicalities is an added advantage.

If you feel that it is time to go in for consolidation, just log on to the World Wide Web and make use of online resources to get the best possible deal.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:Free Debt Advice
(http://www.freedebtsettlementsolutions.com/)

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FreeDebtSettlementSolutions is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://freedebtsettlementsolutions.com