What is the best way to consolidate credit card debt with low income?

Question

I have racked up about $10,000 in credit card debt stemming from college and medical expenses. What is my best option as I am still a student and working with a very limited budget? Are there hidden catches to debt consolidation companies; if so what?

What is the best way to negotiate with creditors to lower the debt?

Answer 1

i say do it your self -- down size your life style to the bare bones and only buy what you need now what you want -- than take the credit cards and start paying they down with each getting the required payment and the highest interest receiving any money that is left over from your new life style!!!

Answer 2

Do not send the payments late, the late charge is ridiculous. I would pay minimum requirement to the credit cards with lowest interest rate. Focus on the one with highest interest rate and pay it with all the money you have left. When you pay off the highest interest credit card, do the same with the next high interest rate. You, however, can borrow money from student loan, this loan allow you to wait on the interest; when you borrow the money from student loan, use it to pay all the credit cards. At the end, you should live below your mean; and do not need contact the debt consolidation companies, with them, you still have to pay. I have heard a lot of bad news about them, they are not that helpful.

Answer 3

Credit cards are expensive financial products with high interest rates charges that could kill. Gradually, long outstanding plastic money dues result in a situation where the total sum of your monthly payment goes towards the payment of interest and charges and your total outstanding remain the same. If this is the case with you, do not delay and seek the services of a professional debt consolidation company for getting out of this vicious cycle and becoming debt free.

Manage Card Blues With An Easy Monthly Payment

Credit card debt consolidation management programs are good ways to eliminate card blues. These companies can help you with a contingency plan when you are under constant pressure of clearing dues as soon as possible or the pile of debt keeps mounting up. Its no denying the fact that making payments at one go is not as easy as it said. This becomes even more difficult if you do not enjoy a good credit rating, thanks to long overdue bills. This is where you need the services of professionals who hold expertise in consolidating debt and loans with a multi pronged program for debt reduction and financial management.

Companies offering credit card debt consolidation services have staff or skilled representatives and managers who help you in alleviating your problems. These companies and professionals offer one or combination of the following for easing your debt burden and setting you free from the hassles of harassing collection calls:

# Representatives help by negotiating with all your individual creditors on your behalf to reduce or minimize payment follow-ups and collection calls till such time they devise a settlement plan for you.

# On the other hand, managers the consolidation company talks to the creditors and settle lower interest rates. They also help by checking additional hazards like late fees and other penalties.

# In some cases, the company can also help in reduction of total amount due of your cards. Read more from: http://www.credit-card-gallery.com/article/145,Credit_Card_Debt_Consolidation_%E2%80%93_Best_Way_To_Manage_Payments_Pressure

Answer 4

Don't consolidate. Negotiate the lowest rates you can and PAY THEM OFF. Mentioning the rate for balance transfers on the offer you got in the mail this morning can't hurt.

Answer 5

Hi,

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