Steps to pay off credit card debt and KTA that are in arrears are now increasingly widespread. The amalan debt management program now has a new product in the form of debt consolidation and refinancing the debt you have. In short, a debt consolidation program is a program created to make it easier for you to pay off a combination of several types of debt into one debt.

For more details, let’s look at the points below:

Definition of Credit Card Debt Consolidation

Basically, credit card debt consolidation is a step taken to make it easier for you to pay off a combination of several types of debt into one debt only to a financing institution other than a bank (such as a multi-finance company or a peer to peer lending company).

Usually there are several advantages of credit card debt consolidation or debt consolidation that you can get. First, you no longer need to bother paying debts separately to several banks at once. So by doing debt consolidation, the entire process of paying various credit card debts or debt consolidation is only done through one door. In addition, another advantage of credit card debt consolidation is the lower interest rate than normal interest.

There are two types of debt consolidation, namely using collateral and not using collateral. Both have their own advantages and disadvantages, and can be obtained in accordance with the terms and conditions provided by non-bank financing institutions.

How Debt Consolidation Works

If you are having trouble making credit card payments or have too much debt and are confused about where to start, you may want to take a debt management option from a credit counseling agency to avoid defaulting on your loan which could have a negative impact on your credit score or get blacklisted from a creditor bank. .

With debt management, you work with a credit counseling agency to set up a new payment plan that changes your terms and payment schedule to help you handle debt better.

Visit a trusted credit counseling agency or financial institution. When seeking help from third-party services, make sure they are credible and registered with the government. Do not carelessly choose a financial institution that will make your debt management even worse. It can make it more difficult for you to pay off your debt. The worst risk is that you will be deceived and make your debt increase even more. This service is supposed to restore finances, not put you into deeper debt.

Once you find a trusted financial institution, a credit counselor will comprehensively review your finances and recommend a debt management plan with a low monthly service fee. click here for more details

Things to Pay Attention to in Debt Consolidation

Before using a credit card debt consolidation program, there are several things you should pay attention to.

• 1. Calculate the total debt and money in your current savings

This way you know how much debt you have to pay off in total, besides that you also have to know whether the money you currently have is still possible to make payments normally. If you know that it’s no longer possible, try calculating whether the remaining savings is actually better allocated for a debt consolidation program – with one-door payments, and interest that tends to be more light.

• 2. Know the estimated debt that must be paid to completion

Calculate carefully how much the estimated debt must be paid until it is paid off. Do not forget to calculate the interest that will be charged. Approximately whether you will be better able to pay off debt with the calculations given. By doing the calculations correctly, of course you can prepare funds so that the debt can be paid off on time.

• 3. Remember that credit cards can no longer be used

Yes, once you have joined the debt consolidation program, the credit card you have can no longer be used. So indeed you have to take advantage of this moment to focus on paying off debt, and no longer adding to debt.

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