Credit card consolidation - save on your monthly bill !

"The sooner you face a debt problem, the easier it will be to solve it" Don't ignore debt and hope it will go away. If you do, you could end up in court, lose the goods you've bought or find it difficult to get credit in future. You might even lose your home if you secured a loan on it.

Even if you aren't up to your neck in debt, it's suprising how quickly it can build up and how long it takes to pay back.

Work out exactly how much you owe, who you owe it to and what you can pay back. This will help sort things out in your mind, and help your creditors to see where you stand. Contact the creditor(s) as soon as possible to explain the problem and try to come to some agreement about repayments. Your debt won't be written off but you might be able to pay it back in smaller payments over a longer period of time. This will probably cost you more in interest payments in the long term but may make your debt more manageable.

Consider the following points :

(1) How much do you owe? List your debts. Work out when payments fall. Identify the priority debts which must be paid.

(2) How much do you earn? Work out how much money you have coming in. Are you claiming all the benefits you are entitled to?

(3) Are you paying too much tax? What do you spend? List your essential and non essential spending. Compare it with your incomings. What do you have left over to offer to creditors?

(4) Nothing left over? Are there areas in which you can cut down your spending?

(5) Is there any way in which you could earn extra money?

Talk to your creditors. Send them a financial statement showing your income and outgoings. Explain your offer to pay off your debt.

(Source : http://www.oft.gov.uk)

Getting out of credit card debt