'Debt Consolidation Advice' a Way out of Post-Holiday Financial Malaise

(EstateNewsWire.com, January 11, 2012 ) Anaheim, California -- The new year is here and so are the post-holiday credit card bills. Americans head to the mall in droves during the holiday season where it's tempting to run up a nice size credit card bill. As a result, many find themselves facing credit card balances that turn out to be a bit higher than they had anticipated. Debt consolidation can be a way out of the post-holiday financial malaise.

One thing that makes paying off credit cards a problem is interest rate, and depending on the credit card, some rates are higher than others. A way to achieve debt consolidation is by transferring a high interest rate balance to a card with a lower interest rate, this will help in reducing the amount people have to pay every month, as well as facilitate the paying off of their debt. If people don't have a low interest credit card, try acquiring one.

Another debt consolidation means by which people could reduce their overall credit card monthly payments is the equity in their home. A home equity loan offers much lower interest rates than credit cards. People can acquire such a loan to pay off all, or some, of their credit card debt and reduce the monthly payments by virtue of the lower interest rate. People can also choose to get a home equity line of credit (HELOC) in lieu of a home equity loan. The only difference between the two is that the HELOC is an open-ended account which people can continue to use as long as you're within their credit limit, while an equity loan is close-ended.

If, and only if, none of the aforementioned options are available to a person, then debt consolidation through a debt settlement program is another option. This is a debt relief approach in which a debt settlement company acts on a person's behalf to negotiate a reduced credit card balance. This can sometimes reduce the debt by up to 50%. Done correctly, it can absolutely help people, said Cyndi Geerdes, an associate professor at the University of Illinois law school, in regards to debt settlement.

An important thing to note is that credit will almost certainly be adversely affected if people choose this approach, although not as badly as it would if a person just went delinquent on the debt.

About Debt Consolidation Advice:

Debt Consolidation Advice is a website designed to educate consumers in the subject of debt relief. It is a valuable resource for consumers in need of solutions to debt problems. The website helps consumers make informative debt relief decisions.

Advice Consolidation Debt

Michael Walsh

(888) - 338 - 6957

contact@adviceconsolidationdebt.com

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