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I used to have a friend who was literally iva 程序 sinking in a mountain of credit card debt, but because of some advice he received from a financial wizard, he is now debt free. I am going to tell you about his credit card debt restructuring scheme in a short while, but let me caution you that it will work only if you take ACTION!

I can’t stress this enough. Many of us tend to forget that nothing moves unless we take action. We have all been done that road of procrastination day-in-and-day-out, and yet we haven’t gotten any wiser as the years passed. So, I repeat, you must take action to see tangible results.

All right, here is his secret – he reduced his card debt by being thrifty and transferring his huge balance to another one. That’s it, that’s how he restructured his debt and came out smelling like a thousand roses.

It is basically a two-step process – (a) determine those areas which you have been spending recklessly, and (b) search for a credit card company which can give you the best deal under your prevailing circumstances.

The first part, your total outstanding, is of course the easy part, right? All you have to do is take a close look at your credit card monthly statement and you will know how much you owe.

But to make your restructuring exercise cruising at top speed, you should dig deeper and find out exactly how those debts were incurred in the first place. Write them down and reflect upon them. Ask yourself whether you have been a spend thrift and seek ways to minimize your spending from now onwards. This step is of critical importance because step two is useless if you don’t cap your financial problems seriously. It is like pouring water into a bottle which has a hole at the bottom. The problem will never be solved.

I hope I have convinced you about the need to get serious about step one. Now we proceed to step you. In this step, you need to scout the offerings of various credit card firms to nail the best deal.

Instead of walking and negotiating with one credit-card firm to the next, the easiest and fastest way would be to search for them online. Look through all the offerings and options carefully to see which one meet your needs, and shortlist them.

Once you have the list in hand, fill up their online application forms and wait. Past experiences suggest that many will reply you because this industry is extremely competitive.

Go for a credit card which offers very low or zero per cent interest for balance transfer for the longest period of time. Such a deal means you don’t have to pay cash through your nose just to cover the interest payment on your debts. If you manage to find such an offer, then your credit card debt restructuring exercise is on the right path. The long zero per cent interest will give you a huge breathing space to accumulate your wealth and finally settle your debt in full. You will notice that the financial stress on your shoulders suddenly become lighter.

Lastly, let me reiterate what I said earlier – it takes total commitment to make it work, but work it will, if you summoned the will to make it work.

Acquiring the best placerate for debt consolidation loans can be an arduous process and due diligence is required on your part to ensure you are obtaining the best deal available. Some debt consolidation firms will charge higher interest rates due to the fact you are in a position of difficulty and the availability of credit for consolidation will also play a significant part in the charging structure imposed.

Additional factors to consider from the loan companies perspective are that historically, debt consolidation loans are more likely to default than a normal loan applied for. This means that the risk posed to the lender is greater using this type of loan than other loans which have a significantly higher default rate.

Refinancing is a great way to alleviate debt problems and plays an important part in any debt restructure. Typically, several loans can be incorporated into one loan with a single competitive interest rate dramatically reducing your monthly outlay to loan repayments. One of the downsides of refinancing using this method is that some of the existing loans you are looking to consolidate may well have been taken out on an unsecured basis. The majority of debt consolidation techniques involve a larger loan which is secured upon an asset large enough to generate sufficient capital to repay the outstanding debt should the customer cease paying the loan repayments.

This, in effect, means a smaller personal loan for a car, for example, would be transformed into a secured debt upon your home. You must therefore, exercise caution in how you set about restructuring loans and if at all possible, retain unsecured loans rather than transferring them to a secured basis.

Techniques to assist you in obtaining the best placerate for debt consolidation loans include the ability to shop around – just because you are in an unfortunate position of having to consolidate does not mean you should not be selective about whom you place this business with. Use the Internet to provide you with current rates and deals available and if you are looking to consolidate using your home as collateral then you should seek independent financial advice – this may incur charges but in the main, these are more than clawed back through the expert knowledge and availability of special deals which you may otherwise not have identified yourself.

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