Credit card consolidation powerhouse, Americor Funding, has been offering credit card consolidation services to consumers nationwide for years. In 2019, the demand has skyrocketed for credit card consolidation services. However, credit card consolidation is only the first step towards getting out of credit card debt. There is still a long way to go before you can call yourself debt-free. Certainly, credit card consolidation gives you some breathing room in the initial stages, but if you act carelessly, things can become difficult and even get worse.
Let’s take a look at some of the mistakes that consumers make when seeking to consolidate credit card debt:
Consumers Never Get to The Root of the Problem
Before you consolidate your credit cards, you need to figure out how you got there in the first place. Credit card consolidation is an easy solution. Still, if you fail to understand how you got there, you are llikely to repeat the same mistakes and be right back where you started.. If you don’t figure out how you got yourself into this situation, you’ll again find yourself struggling with credit card debt again, no matter how many times you consolidate your credit card debt.
Consumers Start Using Their Credit Cards Again
Credit card consolidation could end up putting you in an even worse position. You will savbe a lot of money by consolidating but you may start using your credit cards again. This ends up being difficult for some as the temptation to spend is sometimes difficult to fight. Your best bet is to freeze the credit cards and only use them in a real case of emergency.
Pay Off Your Credit Card Consolidation Loan On Time
As easy as it sounds, a credit consolidation plan can take years to pay off. It makes it worse if you only make minimum monthly payments. Payment of credit card consolidated debt is tricky, and if you keep on adding more credit card debt, things can get out of hand. In most cases, there is a mutually agreed deadline. When credit card debt repayment plans are devised, the consumers and the creditors agree that the debt will be paid within the next 4 to 5 years. If you have extra cash laying around, make a pre-payment. And the best advice is to use cash as often as possible.