Due to the recent financial recession, many people have found themselves in a position where they never thought they would be. Many people these days are dealing with overwhelming charge card debt. Being an advocate of financial stability and, understanding how third party affiliation with debts can cause harm to credit ratings, I decided to go on a search for consumer debt relief options that didn’t involve third parties.

When I started my research on debt relief programs and how they work, I never thought I would find what I found. One of the most well known debt relief options was one that Americans really could do easily on their own. Have you heard of debt consolidation? Well, many people have. As a matter of fact, there are tons of companies out there that get paid thousands of dollars to do it!

The process of debt consolidation is the process of rolling multiple debts into one loan. The way this helps is simple. If done right, the new loan will have a much lower APR than the old credit card account loans did. This helps consumers to pay their debts faster without having to spend so much in interest and finance charges. Another benefit of debt consolidation is that Americans no longer have to worry about multiple accounts. Their debts will have one bill with one lender.

I found this to be a great way to go so, I looked into what third parties actually do! What I found was appalling. In most cases, third party debt consolidations try to show the lenders a financial hardship that the Americans are going through. In doing so, they use this as a reason to offer a low APR. The bad part about this is that this process causes credit card companies to close the accounts. This action detrimentally affects the credit scores of Americans who do it because the closure of accounts leads to a 100% debt to credit limit ratio on these accounts.

Once the accounts are closed, the debt consolidation company helps the people to manage their payments by consolidating all payments into one number and having the consumers send that payment plus a service fee to the consolidation company. The consolidation company then disperses the payments as necessary.

Knowing that this process has a detrimental affect on credit ratings, I decided to see if I can twist the debt consolidation process to only provide positives for consumers. And, well, I have! The answer was balance transfer credit cards. Balance transfer charge card accounts offer Americans low promotional and long term annual percentage rates in return for people transferring their balances from other lenders. All consumers need to do to consolidate their debts is apply for a balance transfer charge card account with a lower annual percentage rate than what they are paying! Old credit cards don’t get closed so no negative affect is caused to credit and there are no third parties that Americans have to pay! Balance transfer charge card debt consolidation is the best way!

This article was written by Joshua Rodriguez and is brought to you by:
JEMCreditCards.com: Skymiles Credit Cards | What Is The Best Credit Card


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