Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Categories
Tip of the Day

Tip of the Day Plan

Plan - Part of retiring without losing your current benefits and standard of living is due to planning for your retirement and starting early. Today the social security people...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Free Credit Card Consolidation

For some consumers struggling with credit card debt, consolidation may be an alternative that can save them time, money and the potential risk of bankruptcy. Some debt consolidation companies offer free credit card consolidation, but such an attractive offer should be approached with scrutiny. After reviewing the fine print, free credit card consolidation may not be exactly what it appears to be.

Credit card debt consolidation companies usually work with a law firm to come up with payment arrangements for consumers struggling with their credit card debt. The consolidation companies (and their associated law firm) deal directly with the credit card companies on behalf of the consumer, who becomes their client. The consolidation companies can come up with an payment plan at a lower interest rate for the consumer, but the credit cards can no longer be used once the agreement is made.

Some debt consolidation companies offer free credit card consolidation as part of their services package. When they offer free credit card consolidation, they mean they will be willing to take on all of the debt and arrangement for payments without an initial fee to the credit card holder. That does not mean, however, that the entire process will be free for the new clients.

The credit card consolidation company will be looking for the consumer to make monthly payments of a pre-determined amount, and will be charging a certain amount extra for a processing fee. While the payments arranged by the debt consolidation company will be lower and at a substantially decreased interest rate, there is no minimum payment that can be made. The monthly payment made by the consumer to the company is constant over a fixed period of time.

While debt consolidation companies may offer free credit card consolidation, they can easily arrange for other fees through the process that will more than make up for such a “special” offer. Along with the monthly processing fee, many companies require a first month or last month payment for their services that does not go to the credit card companies, but they keep themselves. While the “consolidation” is “free”, the cost of dealing with the credit cards and arranging for the new repayment agreements is not.

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Buy and Write

Buy and Write - A buy and write is an investments technique where a call option that is written, in the form of a formal contract, on a financial security or asset at the same time it is purchased. A call option is a contract, ...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com