Consolidating credit card debt with low income – Which is your best choice?
If you have too many unpaid credit card bills to repay, you may be wondering about the ways in which you can repay them and remove the burden of high interest debt. Nothing can be worse than drowning in revolving credit card debt as this has an adverse impact on your credit score and on your financial health. However, if your monthly income is not too high, your choices become restrained. What should you do during such a situation? Which debt elimination option should you choose? Well, read on the concerns of this article to know the option that may suit your low income needs.
Consolidating your debts in the non-profit way – The benefits
When the monthly income that you earn is not high enough to support your rising financial needs, you have to look for a debt relief option that doesn’t drain money off your wallet. How about consolidating your debts the non-profit way? Well, if you’re not much aware of the ways in which you may benefit through non-profit debt consolidation, here are some points to check out.
- Negotiations on your behalf: As you enroll yourself in a non-profit debt consolidation program, the debt consultant will have a look at your finances and negotiate with your creditors in order to lower the rates and terms on your multiple credit card accounts so as to make it favorable for you to repay.
- Revised interest rates: The interest rates that you were paying on the credit card accounts will all be revised and reduced so as to facilitate the entire debt repayment procedure. He will tell the exact reason that is barring you from making the timely debt payments and if the creditors agree, the interest rates will be revised soon.
- Single monthly payment: When you consolidate your multiple credit card accounts, it is most obvious that you have to pay back the entire in single and affordable monthly payments. Instead of having to make multiple payments on your multiple accounts, you have to make a single monthly payment in a month.
- Late fees will be waived off: If you had missed your payments on the credit cards and accrued late fees and penalties, you need not worry as debt consolidation can even eliminate all the penalty charges as this will be rolled over. Your monthly payments will automatically decrease and you can save a considerable amount of money every month.
Therefore, when you’re drowning in a sea of high interest debt, you can certainly opt for debt consolidation. If you’re contemplating a bankruptcy, you need to reconsider your thoughts as bankruptcy is a debt relief option which you should choose when you have no other way of getting out of debt. Debt consolidation is usually a worthy alternative to bankruptcy and when you’re consolidating your debts in the non-profit way, it is even better. Apart from reduced charges, they’ll personally help you get out of debt and also stay out of it. However, check the non-profit certificate awarded to them by the IRS so that you’re sure about the authenticity.