Credit card debt consolidation can help you to get rid of your outstanding credit card bills gradually. However, if you plan on seeking help from a professional organization, you should research well and make sure you don’t get entrapped into a scam.
What key questions can you ask before choosing a credit consolidation firm?
You need to check out some issues before you approach a company to get credit card debt consolidation services. Find out if the company deals with the type of creditors you owe. For instance, often some companies just deal with unsecured loans and don't trade with secured debts such as mortgages or auto loans. So before arriving at any decision, ask them:
- The kind of services and solutions they offer.
- Their fee structure. See if they offer FTC compliant fee structure.
- Whether they've any kind of coordination with the creditors you owe.
- If they have any valid accreditation or license.
- Number of consumer complaints against them.
- How long they are in the business and inquire about their success rate.
- If they'll handle all your creditor calls on your behalf.
Can OVLG help to consolidate my credit cards?
Yes, OVLG can help you to consolidate your credit cards into one monthly payment. OVLG has a team of experienced attorneys and Financial Coaches who can help you pay back your creditors with an affordable monthly payment plan.
All you need to do is understand the OVLG’s credit card consolidation process as explained below:
- Step 1: A Financial Coach contacts you over the phone and analyzes your financial situation. He asks you different questions about your income, expenses, savings, and debts to get a clear idea about your financial health.
- Step 2: The Financial Coach explains all the credit card debt relief options (credit card consolidation, credit card debt management, credit card debt settlement, and bankruptcy) to you.
- Step 3: Once you opt for the credit card consolidation program, the Financial Coach formulates an affordable repayment plan and shows it to you. If it suits your budget, the Coach proposes the plan to your creditors.
- Step 4: Once your creditor approves the plan, OVLG asks you to send a specific amount every month.
- Step 5: The Financial Coach distributes the money amongst your creditors every month.
For more details, go to the OVLG debt relief process.
What to do when you’re consolidating debts
Certain points should always be kept in mind when you’re trying to get rid of your outstanding credit card bills.
- Be wise with your spending: Make sure you do not indulge in unwise spending any more. With a credit card consolidation, you're trying to borrow your way out of debt. Taking such a step would be pointless if you continue with the poor spending habits that landed you in debt in the first place.
- Stay away from credit cards: Credit cards have pushed you towards debt. If you are not careful enough, then credit cards may push you towards debt once again. So while you are in a consolidation program, start developing the habit of using cash instead of credit cards.
- Do your homework: If you’re planning to reduce credit card debt through a non-profit debt consolidation company, then just remember one point. The term ‘non-profit’ doesn’t mean free or legitimate. Some non-profit companies charge a very high fee. Others charge a nominal fee but don’t provide any services. FTC strictly warns consumers to stay away from such companies.
- Read the contract: Read the agreement carefully before enrolling in a debt relief program. Find out how much fee you have to pay to reduce credit card debt. Check the terms and conditions carefully. Give a special attention to the fine print section. Find out if there is any advance fee or additional charges.
- Stick to your budget: Mark my words. It’s impossible to reduce credit card debt unless you follow a budget. You can use a personal budget application to create a budget. The main goal is to explore the areas where you’re spending more and reduce your expenses there. Calculate how much you’re saving every month. If you aren’t saving enough, then it’s time to take constructive steps and save more.
- Put extra money toward debt: If you receive extra money in a month, use it to reduce credit card debt. Don’t spend the money on a vacation or an expensive item. Your goal should be to get out of debt as soon as you can.
- Track your payments: It is extremely important to check the progress of your credit card consolidation program. Suppose, you’re making monthly payments to the credit card consolidation company. But how will you know that the consolidation company is making timely payments? This is a vital question.
OVLG has a client secure area wherein you can track your debt progress. There is an Android app through which you can stay connected with the OVLG’s CRA. You can get your payment information, transaction details, budget analysis, account status, notes and attachments from here.
You can experience trouble while trying to pay off your bills. This is not a great issue if the current economic scenario is taken into consideration. However, you need to wise up and find out the right way to make your way out of several credit card debts. If you're still looking for an answer to your debt problems, credit card debt consolidation might be the best possible answer.