Almost everyone who has a reasonably good credit score is sure to be bombarded with credit card debt consolidation junk mail from all kinds of institutions offering to help in the debt consolidation process. Some of these junk main advertisements may even carry the name of a well known company, like GE Capital, for example. But this does not always mean that that company is affiliated with the one that is offering to consolidate your debts for you.
They could have been spun off years ago and are their own organization. That also does not mean that they can not lend a helping hand when it comes to consolidating credit card debt, they can, but you have to be careful that in the process of consolidating credit card debt you do not dig your financial hole deeper than it already is.
There is a danger to consolidating credit card debt because many companies make it seem so easy. Always remember that if it is too good to be true then it probably is.
Advertisements often include check-like documents that claim to just give you a relatively large amount of money that you can invest in your debt elimination plan. That sounds great, but that large amount of money comes from an equity line of credit that the company offers you as long as you are willing to put your home up as collateral. Using such equity credit lines in an effort to consolidate credit card debt is not wise.
Lines of credit are used for major expenses like college for you children or remodeling your home. Plus they are tied to your home's mortgage and you do not want short term debt like credit cards to turn into a long term obligation. You can just throw those offers in the garbage.
Refinancing Options
If you have not thought about it, and you own your home, refinancing may not be a bad way to take care of consolidating credit card debt. It can be an extreme measure, and it will add more years to paying off your house, but if you do not mind the idea of extending your mortgage back out to a 30 year loan then go for it. You are financing a significantly lower amount than when you originally bought the house and you can add in the amount you need for consolidating credit card debt.
Even though this method of credit card debt consolidation means that you get stuck with a thirty year loan, your payments will surely be lower than they used to be and your credit card debt will finally have been eliminated.
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