Credit Card Consolidation Programs

Are you looking for a way out of your credit card debt? If you are struggling to pay off multiple credit cards and getting nowhere, your solution could be to enter a credit card consolidation program.


Q: What exactly is a credit card consolidation program?

A: It is a debt-management strategy using the services of a third party to negotiate with your creditors on your behalf.

Q: Why consider a debt consolidation program when I could manage the debt myself?

A: If you had been managing your debt, you wouldn’t be reading this. You would have:
• a budget you followed religiously.
• a regular monthly payment plan to pay everything on time.
• no new credit cards.
And you would not be getting unexpected bills and demand notices.

Q: OK – point taken. So how can this help me?

A: A good program will give you access to experts who:
• negotiate with your creditors to work out a plan suitable to all parties.
• assist you to assess your situation so you are debt-free within a specified time (typically 2 to 5 years) depending on your debt.
• give you a structured approach to managing your debt – especially useful if you are a naturally disorganised person.

Q: What are the immediate benefits?

A: It depends on the particular program but these are typical benefits already being obtained by people in your situation:
• Reduced interest rates especially if you have a less than perfect credit rating.
• Some creditors may waive late fees.
• No stressful collection calls
• Your finances are structured around one monthly payment for better budgeting.
• May help you avoid bankruptcy.
• Debt free at end of the program

Q: Suppose I go down this road. What should I do next?

A: The main thing is to take action now – here are a couple of suggestions:
• Assess your situation immediately! There are a range of programs, so you need time to find the one that is your “best fit”.
• Contact the various providers to find out what they are offering.
• Don’t procrastinate – you won’t win the lottery!


And remember, there is no point in working hard to become debt-free if you do the same thing again. A good program will link you with a counsellor who will help you learn from your experience so you can change the habits and behaviours that created your situation.