Right now, credit card companies can raise interest rates even if the consumer has a late payment on an entirely different account. Any negative changes in their credit report can trigger interest rate hikes across the board.
Apollo Beach, FL (PRWEB) August 13, 2009
Many credit card holders have to endure rates on outstanding debt to multiple credit cards. With the Credit Card Act of 2009, intended to protect consumers from questionable credit card practices taking effect in February 2010, companies are raising interest rates while they still have the chance. CreditLoan.com recommends debt consolidation (http://www.creditloan.com/debt-consolidation/ ) as a solution.
Utilizing a debt consolidation loan, the consumer can take payments from a few credit cards, all with their own interest rates, and combine them into one payment at a single rate. The benefit to this, in addition to having just one payment to make instead of a few, is that the payment will be lower. It is important, however, that the consumer calculate the interest and fees on all their accounts to determine if the cost of the bundled loan is actually less than the separate payments. Balance transfers are a good option too, though rates could change at any time and new purchases will be charged at a higher rate. Evaluating your options is key.
Daniel Wesley, CEO of CreditLoan.com, says, "Right now, credit card companies can raise interest rates even if the consumer has a late payment on an entirely different account. Any negative changes in their credit report can trigger interest rate hikes across the board." He goes on to say, "Debt consolidation is not for everybody, so we suggest evaluating your options first before making the final decision. We offer great advice on our blog, and provide up-to-date information to help consumers manage their finances."
Creditloan.com suggests taking advantage of payday loans. Such loans are easy to acquire. The borrower often does not have to go through a credit check and is approved right away. Home equity loans are another option. The interest rates are much lower, however, if payments cannot be made, the borrower risks losing their home as a result. Regardless, borrowers are better off weighing all options before making a decision on how to reduce their debt.
"When people are in serious debt, they tend to seek quick solutions," said Wesley. "At CreditLoan.com, we provide a portal offering expert advice on how people can reduce and manage debt, as well as solutions by bringing borrowers and lenders together. Financial recovery can be long and difficult and we try to clear up the misconceptions on debt consolidation and personal finances the best we can."
Founded in 1998, Creditloan.com is a website designed around the educating of consumers on a range of personal financial issues. The content-driven site includes a range of expert advice on topics such as bad credit loans, mortgage/refinancing loans, credit cards, student loans, credit reports and repair, and more. Articles are added daily and distributed via RSS feed. Content is always fresh and unduplicated.