Ask Terry Questions Credit Card debt consolidation

Credit Card debt consolidation

By Terry Savage on June 18, 2018 | Credit/Debt

We’ve accumulated way too much credit card debt and need to consolidate. What’s the best way to go about it? I’ve stopped using them, but it’s getting harder to pay the minimum on them all.
Thank you so much

Terry Says

Don’t fall for one of those debt consolidation schemes. They tell you to stop paying the minimums to build up a pool of money which they can use to negotiate a payoff. But in the meantime your credit is ruined — and you may even have your wages garnished.

Instead call the National Foundation for Credit Counseling at 800-388-2227. That will connect you to the nearest local office. Just having counseling might help — and doesn’t go on your credit report. But if necessary, they can work with your creditors to lower interest rates and re-age (wipe out back interest) the interest on the account. Then you send them one monthly payment and they distribute it to your creditors per agreement. That DOES impact your credit however.
Do call for counseling. And take a second look to see if there’s ANYTHING you can sell for cash to pay down a big hunk of that debt. OR if there’s any way to take an evening or weekend job to earn more money and use it to pay down your balances.

If you could just double the current minimum monthly payment — and pay that same amount every month (even though the new minimum is lower) and never charge another penny, you’d be out of debt in less than 3 years!



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