How to consolidate and pay off credit card bills

Submitted by JDSey on Tue, 05/01/2007 - 13:03
Forums
Credit repair

If you are having problems managing your credit card bills and your accounts have been handed over to a collection agency, you can try consolidating your debts. Consolidating credit card helps you to pay off your debts more easily because all the debts are consolidated into a single debt and lowers the interest rate on your debt.

Ways to consolidate credit card debt

There are various ways that you can consolidate your credit card debt. They are as follows:

  1. Get a home equity loan – You can take out a low interest home equity loan and try to pay off your credit card bills. This loan is taken against the equity that has built up on your home. The interest rate on HELOC is generally low, which will make it easier to pay down the loan.
  2. Get a personal loan – You can try to get a personal loan from your bank to pay off your credit card bills. However, personal loans generally charge high interest rates. So, you need to have a really good credit score to qualify for a personal loan with a comparatively low interest rate.
  3. Do a balance transfer – You can transfer the balances from all your high interest credit cards to one with a low interest rate. Thus, all your bills are consolidated into a single obligation. If you don't have a low interest credit card but you have good credit score, you can transfer the balances from all your cards into a new card that offers a 0% interest rate. However, you should try to pay off the debt within this 0% offer period. The offer period generally lasts for 6 months to one year, depending on the credit card company. Most companies also charge a balance transfer fee for each account you transfer. So be careful when doing a balance transfer or you might end up in more debt.
  4. Enroll in debt consolidation program – If you can't consolidate your credit card bills on your own, you can get help from a credit or debt management company. The agency will first analyze your financial situation and then enroll you into a debt consolidation program, if needed. During the debt consolidation program the counselor negotiates with your creditors to lower your monthly payments by reducing or eliminating your interest and late fees.

Advantages of credit card debt consolidation

There are many advantages to credit card debt consolidation. They are:

  1. Several debts are consolidated into one – When you have several debts, it becomes really complicated, as you are required to make several payments each month. However, when all your debts are consolidated into one, you are required to make a single monthly payment toward that single debt.
  2. Interest rate lowered – With debt consolidation, the interest rate is lowered and therefore it becomes much easier for you to make the regular monthly payments. You are relieved from the stress of making high monthly payments.
  3. Credit is not hurt – Unlike debt settlement, with debt consolidation, you repay the entire amount of your debt, instead of part of it. Therefore, your credit is not hurt.

Disadvantages of credit consolidation

Credit card consolidation helps you to pay off your credit cards bills easily enough. However, there are some disadvantages to it:

  1. Risk to your asset – If you take out secured loans there is a risk of losing your assets. If you fail to pay back the debt, your assets may be seized. For example, if you get a HELOC to pay off your credit card bills and then you fail to pay back the debt, your home may get foreclosed on.
  2. Accumulate more debt – You can end up accumulating more debt through debt consolidation because you take out new loan to pay off your credit card bills. Also, if you do a balance transfer, theinterest rate on the new credit card can increase, thereby increasing your outstanding debt amount.
  3. You can end up paying more in interest – If you make low monthly payments while in a consolidation program, you end up paying more toward the interest, as you are taking a longer time to pay off your debt.

  4. Scam credit consolidation companies – The credit consolidation company you are trusting to help you get out of debt could be running a scam. Thus, it is important to check the authenticity of the company.

    5. However, there are various other ways that you can try managing your credit card debt, like debt settlement, negotiating repayment plans, etc. For more details refer http://www.creditmagic.org/card/debt-management.html .

shintao

I will throw this out there as a grain of sand, and let others here decide what is good or bad.

To build credit, go get a secured credit card and plunk about a $1,000. on it. Then go to another bank and get another secured credit card for $600., and pay for it with the first card. Then repeat this one more time using the 2nd card balance for $400. Those will all show a good score on your credit report.

Another way I found out is still legal, is to use your parents credit cards to build your credit score. Have your parents put your name on their good credit cards. Wait a few months and this card will appear in your credit report. Once it does, have your parents remove your name. That remains on your credit forever, and you don't even have to know they did it. All they need is your name and your SS number. You might have a rich uncle etc. to help you.

Another legal way is buying credit card credit, which is still legal, but the credit industry is trying to find a way to stop it. There are some companys that buy good creditors card numbers, and then sell them to you, which then goes on your credit report. Likewise, once it registers, the owner of the card removes your name from the card, and the card remains on your account forever. 5 such cards are said to boost your credit rating 200 pts. Its expensive!! 1000-800. for 1st card, and $200. for further cards.

OK, I am the black sheep of the familiy, but I did find these ideas, and see it as a means to good credit scores. It doesn't remove anything negative, just add more good things.

Thu, 04/22/2010 - 10:00 Permalink
zell Sheplee (not verified)

I will not use by Bealls Charge account if you charge $1.00 this is stupid.

Thu, 04/22/2010 - 23:46 Permalink
Audrey H. (not verified)

go to goodysonline.com to register for online payments...READ the fine print before agreeing to terms...they may/will charge $15.00 processing fee for online payments...this blows..and i will just pay at the store....hope this helps

Fri, 04/23/2010 - 16:07 Permalink
mary ann fazio (not verified)

How do I register for paperless statements? [email deleted as per forum rules and conditions.]

Mon, 04/26/2010 - 15:34 Permalink
diane broughton (not verified)

i spend between 5 to 600.00 a month at bealls. some I charge and some in cash. the money i do charge i pay in full. - no balance. if you insist on charging 1.00 fee i will take my money elsewhere.

Mon, 04/26/2010 - 20:06 Permalink
Jeanne Driggs (not verified)

It would be nice if you would print out a statement with the instructions to join the paperless. I thought I had already signed up once months ago.

Thu, 04/29/2010 - 19:26 Permalink
kab (not verified)

You can take this silly operation of trying to find the payment site and fly it to the moon. I have been trying to make a payment for a freaking month now, without being assessed the freaking $10 and it is like a game of find me if you can. I am not paying, when i go into collection i will make sure my attorney has your scheme investigated.

Thu, 05/06/2010 - 15:28 Permalink
Creighton (not verified)

I just cancelled my Bealls credit card also. I have spent an hour typing and phoning with no luck. Does "user friendly" mean anything any more?

Fri, 05/07/2010 - 14:44 Permalink
betty perry (not verified)

cannot find a link to register for paperless billing, and your telephone
responses are not any more helpful. It appears that there a number
of other customers complaining about the same problem. Can I get
an answer? Dalnbet@hal-pc.org tel#713-682-4182

Sat, 05/08/2010 - 21:43 Permalink
sandywadsworth… (not verified)

i finally figured it out. go online to the official site of the store you want. click on manage my account. it will offer paperless option. read carefully and sign up for either a onetme amount of payment (free in my store) or a revolving amount differing each month (not free) be sure to read the small print.

Mon, 05/10/2010 - 20:43 Permalink
Aaron

Hi,

Can you be more clear as to what you need to know? Where do you want to sign up?

Thanks

Wed, 05/12/2010 - 10:24 Permalink
Elsie (not verified)

Ican't seem to get on line to see my balance as I want to pay it. Ihave signed up for paperless statement. I did some purchasing and returning now I need the balance so I can pay my bill

Tue, 05/18/2010 - 02:20 Permalink
Aaron

Hi Elsie,

Can you tell me when you tried to check the balance whether or not you were logged in? You can try checking the balance again after properly logging into your account.

Thanks,

Aaron

Tue, 05/18/2010 - 12:23 Permalink
brenda frech (not verified)

Looks like I am not the only one having problems doing the paperless request. Help and don't send me to other sites, this is the one on my statement.

Tue, 05/18/2010 - 17:46 Permalink
Ronald Emde (not verified)

Received notice with bill today to sign up for paperless billing.Have been trying for 45 minutes to connect to your address but can!t get a thing regarding how to sign up.It looks like a lot of other people have the same problem.
I guess the best thing to do is just deduct the dollar when paying bill unless you have some idea as to how I can register

Tue, 05/18/2010 - 20:18 Permalink
Penelope Wilkes (not verified)

I am unable to access the site to change to paperless billing. I am going to pay my current bill at the store and then close out my account. I love shopping at Beall's but will just use a regular credit card in the future or pay cash. I will not pay a monthly fee of $1.

Wed, 05/19/2010 - 00:14 Permalink
Aaron

Hi Ronald and Penelope,

Visit the website of the company with whom you are wanting to register for the paperless statements. There you will get an option to sign up with the company on-line. You need to first sign-up in order to register for the paperless statement option.

Thanks,

Aaron

Wed, 05/19/2010 - 12:04 Permalink
Guest (not verified)

i have been shopping at bealls for YEARS. Now, i have to register to avoid an online fee of $1.00 for a paper statement. Goodbye Bealls. I will shop elsewhere.

Wed, 05/19/2010 - 12:46 Permalink
deanne syers (not verified)

how do I get to the right place to have by bills send electronically

Wed, 05/19/2010 - 22:16 Permalink
Aaron

HI,

For that you need to create an on-line account and sign up with the card company. You can also talk about this with the credit card company.

Thanks,

Aaron

Thu, 05/20/2010 - 12:02 Permalink
customer (not verified)

I will have to send my wife's ashes to them to stop calls for charges on a closed account, seems they charge for non use.

Sun, 05/23/2010 - 15:51 Permalink
Aaron

Hi customer,

Can you tell what is the problem that you are facing?

Thanks,

Aaron

Mon, 05/24/2010 - 11:49 Permalink
dgalloway (not verified)

have tried numerous times and cannot get online to get paperless account. Have called Bealls customer svc 3 times. getting tired of this. planning on cncling my account. they should not charge a $1.00 for rcving paper statements.

Wed, 05/26/2010 - 16:46 Permalink
bad credit (not verified)

I'm tring to rebuild my credit i have a jcp acct but cant get any others help please

Sat, 05/29/2010 - 14:21 Permalink
Aaron

Hi,

Can I know what kind of account you are talking about? What is a jcp account?

Thanks,

Aaron

Mon, 05/31/2010 - 11:52 Permalink
Barbara Chambers (not verified)

I just discovered that for the paste 3 months I have been charged a $1.00 processing fee to receive a bill in the mail. I guess if I want to continue to do business with Stage, I would like to receive a paperless statement sent to [email id removed as per forum rules and guidelines]. I was not able to do so by e-mail as instructed by one of your employees.

Tue, 06/01/2010 - 17:58 Permalink
Jacqueline Kennedy (not verified)

I to have been trying to register but I am unable to do this by following the instructions given by you all. Where do I go from here? Jacqueline

Wed, 06/02/2010 - 04:18 Permalink
Aaron

Hi Barbara:

I searched the stage credit card site for the paperless statement, but was unable to find any such option. What you can do is talk to them regarding registering for the paperless statements.

Glenda:

Can you please give the full name of the company?

Jacqueline:

Can i know with which company you are trying to register?

Thanks,

Aaron

Wed, 06/02/2010 - 10:27 Permalink
Lanore Finn (not verified)

What the hell is wrong with you people. You want to charge every one $1.00 to send out a paper bill but make it so dame hard to sign up. So if you can not fix the problem maybe Ross or Kohls will be hapopy to get my business since you dont.

Fri, 06/04/2010 - 23:38 Permalink
Aaron

Hi Lanore,

I think you are mistaken. This is not any credit card site. This is creditmagic community that helps people in their credit problems, and in repairing the credit.

To register to the paperless statement option, you will have to first register your card with the card company online.

Thanks,

Aaron

Sat, 06/05/2010 - 08:02 Permalink