Debt consolidation lead

With the cost of everything looking set to rise for the next few years, more and more Christians are finding it a strain to keep control of their personal finances. In the past many have turned to HELOCs to help refinance but these do not represent a long term solution and indeed have become increasingly unavailable due to falling house prices and the credit crunch.

For this reason there is an increasing demand for credit card consolidation services but by and large I have little faith in these. The problem with any form of consolidation is that it feeds the debt monster if one doesn’t commit to changing the way money is treated.

As I once read money is not for spending it is for managing and a good Christian Debt Consolidation counselor will show you how to manage money so that you never have to worry about debt again.

Now that’s fine and dandy but if you can’t see a light at the end of the debt tunnel my writing that last paragraph isn’t going to help. So whilst I don’t like credit card consolidation it does have a place in the market.

In essence consolidation of credit cards means rolling up the debts on your existing cards and using a balance transfer mechanism switch them over to a new credit card offering a better deal. Note I said a better deal. Oftentimes we fail to check out the headline offers in sufficient detail and we end up worse off than before if we’re not careful.

Always remind yourself of the truth here. The credit card industry doesn’t want you to pay off your outstanding balance each and every month because if you did they wouldn’t make any money. Effectively they are preying on our lack of financial management skills and taking a slice of what we cant afford to pay in the first place.

So are there good deals out there? Of course but they require considerable research to identify and most of us just don’t have the drive to look beyond the headline rates. This has lead me to the conclusion that if we don’t want to check the fine print we shouldn’t attempt credit card consolidation. Why, well lets check some of the pitfalls shall we.

Have you heard of the “universal default rule”. This little beauty means that if you are more than 30 days late on any payment the interest rate on your credit card can shoot up and your credit score damaged. And guess what? Many companies are applying this rule on a daily basis. The lesson? Make sure any new card doesn’t apply this draconian rule.

What about fees? Sure the headline rate looks attractive but you can incur a balance transfer fee – 3% of your debt not being untypical. Then there are late fees, over the limit fees and other costs that can be associated with the card.

If you aren’t prepared to do the research your best bet is probably to call your existing card companies explain you’ve found some better deals and ask if there is anything they can do to match them.

For more information please visit the Christian Debt Consolidation Guide. This is an information only website providing independent and unbiased views. We do not provide Christian Debt Consolidation Services just a good education.

So when should we consider credit card consolidation? Only as part of a large Christian debt consolidation solution. The fact is that most of us try unsuccessfully to create our own solutions and we can believe that this offer is right for us. In truth, there are multiple strands to successful debt reduction and debt management and even Christian Debt Consolidation carries plenty of pitfalls for the unwary. Even a not for profit organization has to make money!

Consolidation should only be considered as part of a wide Christian debt consolidation counseling service. Find a Christian debt consolidation counselor that cares about you and can help. Don’t accept the first offer that catches your eye, shop around. Get a feel for the different offerings and see if what they say makes sense to you. Ask questions. How much does the service cost. Do they show you how to avoid getting into money troubles again and repeating the sins of the past.

Finding the right Christian debt consolidation service will strengthen your faith and put money back in your wallet. It might not be easy but with trust in God and a determination to get through you debt woes you will come out the other side stronger.

By: Michael Page

Many Britons’ budgets are stretched to the limit in the current climate -a fact once again demonstrated by new figures from Abbey today.

The banking services and mortgage provider has published the results of research suggesting that more than six in ten people struggle to make ends meet on a monthly basis. As many as 64 per cent of respondents to the firm’s survey stated that they are forced to make sacrifices in the lead up to payday as they run out of funds in their current accounts. With such strains on their finances as mortgage repayments, mobile phone and landline bills, utility bills and other demands to meet, the average current account is empty around five days before paycheques replenish them.

And at this time of year, still higher numbers are likely to need to make monetary sacrifices to see themselves through the Christmas period. Abbey calculates that, with most workers being paid on the last day of the month, funds in November are likely to reach zero on the 25th. However, it adds that better money management – such as taking out a debt consolidation loan and working out a budget – could help to regulate financial flow to prevent such periods of shortage.

The company says that different consumers aim to cut down their spending in different ways. While the largest proportion (43 per cent) say that they will socialise less at the end of the month, 17 per cent say that they will cut down on clothes outlay, six per cent compromise on cosmetics and three per cent prefer to go hungry over limiting other spending.

Meanwhile, when current accounts run low 31 per cent of people look to their overdraft for extra funds, 25 per cent spend on credit cards and the same proportion dip into savings. Consumers choosing to pursue any of these options might find that personal loans are a more cost-effective and manageable way of seeing them through to the end of the month.

Steve Shore, head of banking at Abbey, comments: “A staggeringly high number of people regularly fail to budget effectively each month and end up running out of cash before their next pay cheque. With Christmas almost upon us, it’s especially important that people budget carefully during December’s party season to ensure they don’t run out of cash.”

The company’s research finds that different geographical areas and different ages vary in their approaches to planning their debts. It states that “unsurprisingly” it is the 18 to 24-year old demographic that are least able to control their spending, while regionally residents in the north struggle more to make their money last.

In recent months, personal finance commentator AWD Chase De Vere suggested that Britons should take more care in dealing with their debts if they hope to avoid financial strife. A spokesperson asserted that many people only confront their debt when getting into significant straits, while those electing to investigate a debt consolidation loan earlier in the process might be better set to address their difficulties.

By: Tom Dawson

If the proportion of debts is huge and you do not what to do with, then you must be under serious trouble. Debts are very serious matters and if not taken proper measures can certainly affect your financial standing. Further, the matters can really turn worse and before realizing anything, you may be on the verge of bankruptcy. So, before anything goes wrong, seek the assistance of debt management. This program is designed to assist you get rid of the debt problems in a systematic and organized manner.

There are number of services associated with the program, whose main priority is to assist you to resolve the debt problems. It is not that difficult to avail the programs, as there are scores of lenders and financial institutions present in the market today.

Managing debts does not sound to be an easy job. You have to plan your moves according to the prevailing circumstances. As a first step towards managing debts, you must refrain from availing any further loans and try to control the debts. Further, you should completely refrain from using credit cards, as they are a major source of high interest debts. If possible, try to pay away some small amount of debts. By doing so, you will be able to greatly reduce the burden of debts. The companies offering this program also assign a financial expert, whose main task is to look at your situation and provide ample advice and suggestions.

The financial experts are capable enough to negotiate with the creditors on your behalf to lower the interest rates along with the monthly payment. This way, you have to make reduce monthly payments and what more; you will be able to save a lot of money on interest rates, which can be used to serve other purposes. These experts also help you to prepare a budget, which you must follow to eliminate the debt threats.

Prior to the availing of debt management, you should go through the terms and conditions. There are various providers available online. Only those should be preferred who are reputed enough and are having a considerable experience in the field of managing debts. So, with debt management, it paves the way for you to lead a debt free life.

By: Gracie Bishop