More and more often these days, we are seeing clients needing credit card debt consolidation. Certainly, credit cards are useful however, they can also be a problem. As a matter of fact, we see an over-dependence on credit cards to pay for high household expenditure.
New lending policies with credit card debt
New lending policies are being released weekly. As such, one of the recent changes is related to credit card debt and credit card payments.
Previous payment calculations were calculated at 2.5-3% of the outstanding balance. Accordingly, this amount will increase to allow the credit card to be paid off within three years. Consequently, reducing your borrowing power on bad credit home loans finance.
Paying off credit card debt
There are some simple ways to pay off credit card
Initially, increasing payments above the minimum required to allow paying off within six months.
Secondly, funds transfer to a 0% interest credit card. Then, 100% of your payments are applied to reduce the balance.
Thirdly, consolidate credit card debt into a lower interest loan with a 1, 2, 3 or even 4 or 5-year terms.