Online Debt Collection Live

Many of us have 2-5 credit cards. When you have so many cards sometimes you only knew
your limit max out when you are about to use one of them. The cashier said “Sorry Sir/Madam your card has a problem the transaction cannot go through”.

You might have 20k-50K Credit Limit on your cards. Imagine the amount of interest you have
to pay. Most Credit Cards charging between 10-18% compounded interest on your outstanding
balance.

Assuming that you have 50K outstanding balance, even with 10% interest you have to pay more than $400 of interest monthly plus you have to pay the minimum payment. So what can you do this reduce the Interest you are paying monthly?

They are various means to do this by consolidating your credit card outstanding balance.
Some Credit Cards Companies will give you lower interest rate if you transfer your outstanding
balance to your new credit card. They might charge 4-6% monthly on the balance you transfer.

You also can shop around with various banks to get a low interest bank loan. The thing to
look for is APR (annual percentage rate) of the loan you are applying. The APR must be lower
than the interest you paying for your credit cards debt.

What are the loan criteria’s to look for?

1. The APR must be lower than your credit cards Debt APR.

2. Try to get APR that is consistent through out your loan tenure.

3. Be aware of variable APR that the bank offer. This could be a trap. Some banks might

offer 0% APR for the first 6 month and charge higher APR thereafter. Remember criteria no.1

4. Make sure you have enough budget to pay your monthly payment.

Remember that consolidating your credit card debt is the first step to get yourself out of debt. This step is only beneficial if you reduce your credit card spending. Keep paying your credit card regularly, control your credit usage. Buy only things you really need. You must set your targets and have disciplines to follow to make sure your achieve your goal.