One of the first cards consumers get is usually a Visa credit card. Before consumers go for applying for any other department store cards or another kind, they usually get a Visa credit card first. In the year 2011, about 261 million Visa credit cards were spread in just the US alone. Visa credit card debt consolidation has become so popular, due to the fact that Visa credit card obligation can become an issue for the average user.
In order to try and lower your debt, one of the things you can do is sign the Visa credit card debt consolidation contract. However, this is not the only option, as there are many other options, which you need to know in order to make the best choice for yourself.
How Does Debt Consolidation Work?
- With Visa credit card debt consolidation, your several Visa card balances move from the current account into a loan account.
- However, the debt balances do stay the same. In order for this to happen, you need to qualify for a consolidation loan.
- If you are after a good interest rate, then you need to understand that a good credit score can help with this.
- If the credit score is bad, then this may stop you altogether from qualifying for a consolidation program.
Why is Debt Consolidation Popular?
The Visa credit card debt consolidation combines several payments into one single one. Getting several Visa statements in the mail can lead to payments being missed and/or payments going out late. The consolidation loan easily resolves the problem, which is why it has become a popular method.
What Debt Consolidation Is Absent
If you have seen commercials about the Visa credit card debt consolidation, then you must understand that there are a couple of facts advertisers leave out. One of the first is that an average Visa credit card debt consolidation package could take from seven to ten years to pay off.
When you combine your Visa credit card debt, nothing productive is being done to the debt itself. Simply transferring debt from one account to another does not reduce the balance in any way and neither does it help you control your responsibilities.
You Could Try Debt Settlement
- This option is a little more productive and is surely the right choice for people who are facing Visa credit card debt.
- A single monthly fee is attained through a settlement account, which is done in complete ease.
- However, this option also has many other significant benefits, which are preferred over the Visa credit card debt consolidation program.
- This option simply works by a professional from debt settlement who on your behalf interacts your creditors and discusses the payoff balances, which are up to 50% less than the amount you owe.
- After this, the settlement company put an account together for you, which allows you to make a distinct monthly payment for all your debt.
How It Works
Dropping Interest Debt
The main reason to why Visa credit card debt can get out of control is due to the interest rates that are charged by issuing banks. As soon as the interest rate gets to 20% or higher, your monthly payments start getting out of control.
With the debt consolidation, the rate of your Visa interest is immediately replaced with a loan interest. When it comes to further growing interest debt, then Visa credit card consolidation does very little to discourse the problem. With a debt settlement program, interests are stopped from growing, which overall decreases your interest debt.
Settlement Is Quicker
A usual settlement program can take from 24-48 months to complete. You need to keep in mind that up to 50% of your debt was discussed away at the beginning. This means that your monthly payments will at least be 50% lower. The money saved towards your settlement account can be applied in order to pay it off quicker. The settlement method is a consistent way, which will definitely get you out of debt much quicker.
Credit Score Is Not Significant
When your Visa credit card debt does get out of control, you’ll start to notice that you are making payments late, and even missing payments. Both these things will harshly affect your credit, which will lead to a bad credit score and stop you from being eligible for a consolidation loan.
However, with the debt settlement program things are different. You would be pleased to know that anyone can qualify for this. In order to qualify, you do not need a good credit score to get the best of help the settlement offers. In fact, in order to qualify for this account, you don’t need any kind of credit at all, which means you can easily and always appreciate the financial assistances of having your debt negotiated.