By Consolidating Your Credit Card Bill

10,000 on your plastic could actually be to your benefit. 10,000, there is no reason to get too worried. Debt consolidation can now come to your rescue even if your credit card debt has reached dizzying heights. Having too much debt is not a situation you would ideally want to be in. With the process of debt consolidation you can actually consolidate all your dues into one lump sum.

The good news is this could actually lower your interest rate. You might have multiple credit cards and at the end of the month, the amounts due and the interest charged all add up. Credit card companies, perhaps rightly so, are always seen as the bad guys. They encourage you to spend and spend without fear. However, should you happen to miss one payment your interest rate will skyrocket to as high as 20 percent. And if you continue skipping payments for whatever reason, the interest rate will just crank up more until you face possible litigation.

By consolidating your credit card bill, even if you have too much debit, you will only have one due date to remember, easing many of your headaches. The flip side is you may have to pay a debt relief company for organizing your debt consolidation. After all, for them, this is a business and means of income. Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the legitimate debt services. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

If you experience financial hardship, the last thing you want to worry about is how you are going to pay your credit cards. Failing to pay your credit cards can result in finance charges, late fees and notices from collection agencies. Instead of hurting your credit, you can inquire about deferring your payments until you are on your feet again.

Contact your credit card company as soon as possible to avoid any fees. Call the customer service line of your credit cards. Tell the customer service representative that you do not wish to default on your accounts. Ask they company would be willing to temporarily defer payments. Give them the basics of your financial situation, but don't over-explain. Ask if the credit card company would be willing to take a lump sum. Find out if the company would allow you to defer payments now and then pay a lump sum in several months.

Transfer the balance to a new card that has a promotional period where no payments are required for a set period of time. Some balance transfer credit cards allow you to make no payments during a promotional period. This can defer the payment of the credit card balance until the introductory period has ended. Find these credit card offers through credit card comparison sites like Credit Net. Contact a credit counseling service. Look for a reputable business in your area that is affiliated with the National Foundation for Credit Counseling.

Select a debt management plan and enroll in it. When you open a new credit card account, you will likely be offered an optional payment protection plan. Enrolling in this type of plan, typically only requires a phone authorization and allows you to defer payments on the card for a set period of time.

You are charged a small monthly fee that appears on your credit card statement. Benefits are typically available to individuals, who have lost their job, become disabled, required to report for military duty, or a similar lifestyle change. Lose Weight. Feel Great! AGE lbs. WEIGHT ft. What Is a High Credit Rating,

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Do you know where the 28/36 rule comes from, If you have ever applied for a mortgage, you may well have wondered about where that 28/36 debt-to-income ratio rule came from that the mortgage broker talked to you about. Read on to discover some surprising facts. When you apply for a mortgage, the banks will usually calculate your debt-to-income ratio. The idea is that your total monthly debt repayments shouldn't be above a certain threshold relative to your income.

And there are two numbers. The first one concerns your housing expenses. Your monthly payments towards principal, interest, taxes and insurance for your housing should be no more than 28% of your gross income. The second number deals with your total monthly debt payments, including credit card payments, car payments, other loans, and housing payments.

Those should be less than 36% of your gross income. But where did these rules come from, After your mortgage has been created by a mortgage company, it is usually sold to an organization like Fannie Mae or Freddie Mac. These organizations are Government Sponsored Entities, or GSEs, and as such have GSE Standards to abide by regarding what mortgages they can purchase.



These aren't rules made by Fannie or Freddie, but some government bureaucrats who did the calculations and figured out these income ratios. Now here is what kind of thinking went into these rules: They're all about the mitigation (lessening) of risk. For whoever owns the loans! Most loans don't stay with the bank that made the loan.