| Credit Card Consolidation
Using plastic money is undoubtedly convenient and you donít have to take the trouble of carrying cash along. Are you aware of the aftermath of inappropriate credit card usage? If you have been using your credit cards too often and have not been making payments regularly, you may be inviting trouble for yourself if you still havenít.
Your ignorant nature may land you in trouble
You may come across several ads beckoning you to hire services of a company offering credit card consolidation. Financial experts are of the opinion that in majority of the instances consumers are cheated because of their ignorant nature. Even the BBB or the Better Business Bureau has urged consumers to have a clear idea of the debt help program they are opting for. The BBB has innumerable complaints from debtors complaining about fraudulent activities. It is always better to take professional help if you have doubts about how the program works.
Consolidate credit card debts
Debt help or a debt solution can take several forms. It may be debt settlement, debt management or a debt management plan. However, credit card consolidation is the most common. In credit card consolidation you compile your multiple debts into one account. If you are planning to handle debts on your own, you approach the creditors to allow you to pay as per reduced interest rates. It is better to take professional assistance and hire the services of a credit card consolidation company because they are aware of the manner in which the creditors operate in the debt help industry. Once your creditor agrees to reduce the interest rate, you are also entitled to lower monthly payments. A new repayment plan is worked out and you are required to make payments as per the new payment schedule.
New credit card regulations to reduce credit card defaults
Credit card defaults are one of the main reasons for the liquidity crunch after subprime mortgage crisis. And the fed is well aware of the consequences of credit card defaults if they are not arrested at the nick of time. In order to reduce the chances of financial injury to the credit cardholders, the fed has introduced new regulations related to the credit card industry. However, the changes will not be effective until July 1st 2010. These regulations have been introduced to bring about changes in the manner in which the credit issuers dole out norms for the consumers.