Do you see nothing but credit card debt when looking at your budget?

Extensive loans and consumer debts are becoming a part of our lives. People need money for their daily expenses while in between jobs; others need quick cash when facing emergency situations. Even entrepreneurs need to inject funds to their working capital when cashflow isn’t enough. But, what would happen when you wake up and all you see are unpaid credit card bills, notices from debt collectors and court summons?

Relying on credit cards every time you have cash flow problems can definitely hurt your wallet. But there are some steps you can do to avoid carrying a balance from one month to the next and accumulating hefty interest charges.

1) Make a credit card spreadsheet
Do you want to see how much is your current total debt? What about the average interest rate as well as the average interest you pay each month? If you want to see the total amount you have already paid on your credit cards and the total payment you are making each month on those debt accounts, create a credit card spreadsheet.

Write down the following:

Name of your creditors
Outstanding balance for each card
Interest rates
Required minimum monthly payments for each account.

Decide on the maximum possible amount you could put towards paying down all your credit card debts, based on your current budget. Select the repayment strategy that would quickly payoff your debts. Is it snowball or highest interest first?

When deciding which of these methods to use, here are factors to consider:

How much interest can I save each month?
What is the total amount I will end up paying?
How long will it take me to be totally free from debt?

Decide how much money you need to dedicate to each credit card account every month. Write down the total amount of money you want will use to pay down your debts. Determine the portion of that amount you would apply to each card.

2) Consolidate
It is not easy to manage multiple debts, especially if you don’t have enough money to make minimum payments each month. If you feel overwhelmed by debts and you are missing monthly payments, debt consolidation can help.

ALC helps customers through their debt consolidation program that enables them to take their multiple credit card debts and other bills and roll them into one loan with better terms. The repayments are lower and the terms of the loan are more flexible than what your credit card provides.

With debt consolidation, all your outstanding credit card debts along with other financial obligations you incurred will be combined into one. The loan specialists at Australian Lending Centre will also negotiate with creditors on your behalf. As a result, you can refinance your loan, get a better deal and lower the monthly payments.

Contact Australian Lending Centre for more information on credit card debt consolidation.