| It is important to understand right in the beginning that | | | | debt, personal and medical loans. You should not |
| credit card spending is the most common cause of | | | | confuse CCCA with a consolidation loan agency. The |
| debt. This is mainly because credit cards offer you | | | | major difference between the two is that while a |
| convenience while spending your money. However, the | | | | consolidation loan agency gives you a loan CCCA |
| negative side of credit cards is that they charge you | | | | does debt consolidation and negotiation of interest |
| an interest rate which is very high. Moreover, right from | | | | rates for you with your credit card company. CCCA |
| the moment you use your credit card, the interest | | | | works for you by receiving a consolidated monthly |
| meter starts running. It is similar to sitting on a potential | | | | payment from you. Then, it uses that amount to pay |
| debt time bomb which is waiting to explode, as soon | | | | off the creditors to whom you owe the money. You |
| as you miss your credit card payment. | | | | will find that availing the services of counseling centers |
| Defusing this crisis is only possible by either following a | | | | like CCCA helps you gain your peace of mind. This is |
| strict financial discipline or avail the services of credit | | | | because of three main reasons, firstly, the creditors |
| card counseling centers. Most people believe that they | | | | are no longer harassing you, secondly, your accounts |
| can pay their credit card firm only on monthly basis. | | | | are being updated regularly and thirdly your payment is |
| However, the fact is that you can pay them as often | | | | current. |
| as possible. So go ahead and pay your credit card | | | | On top of this, since someone else is managing your |
| company on regular intervals. We recommend that | | | | payment schedules and logistics, no payment is missed |
| you pay them on weekly basis. Paying every week | | | | and no late fees or delinquency charges are imposed |
| means that you pay a lesser interest rate and this is | | | | on you. It is natural for people to feel disappointed |
| because, every time you pay the remaining balance is | | | | when their application for a debt consolidation loan is |
| reduced. Also, small payments on weekly basis are | | | | not approved by banks. At the same time it is |
| easier to make as compared to bigger monthly | | | | important that they accept the fact that a credit card |
| payments. The above approach will help you manage | | | | debt is a loan which is unsecured in nature. Since an |
| your credit card payments in a better manner. | | | | unsecured loan like credit card debt is not attached to |
| However if you find yourself in a serious problem due | | | | any collateral, most of these banks will ask you for a |
| to your credit card debt, we advise that you consider | | | | mortgage. For example they may ask for your house |
| approaching Credit Card Counseling Centers for | | | | to be mortgaged. We do not advise this as in case of |
| guidance. | | | | a default on payment, the bank has the right to auction |
| These organizations include Consumer Counseling | | | | that asset. So, the best way to get out of a financial |
| Centre of America (CCCA) which are non-profit | | | | crisis like credit card debt, you will require a lot of self |
| organizations and have their presence all over the | | | | discipline and a little assistance from a counseling |
| country. These centers assist consumers in getting out | | | | service. |
| of debts which are unsecured in nature like credit card | | | | |