In 2010, there were 609 million credit cards issued in the United States and 176 million of them were issued by MasterCard. The average American household has at least $15,000 in credit card debt, and MasterCard is a big part of that. Let us take a quick look at MasterCard credit card debt consolidation options.
The Value of MasterCard
Having a MasterCard in your wallet can be a good thing. Many MasterCard issuers have incentive programs that include case back and bonus points that can be used to purchase valuable prizes. You can also get a MasterCard that helps you to get free airline tickets after you have racked up a predetermined amount of charges.
MasterCard Keeps You Out of Trouble
MasterCard is a major credit card brand that is accepted by millions of businesses all over the world. In an emergency situation, a MasterCard could be the thing that helps get you out of trouble.
While having a MasterCard is a good thing in some respects, it can also be a problem if you take on too many MasterCards and allow your debt to get out of hand. That is when many people consider MasterCard debt consolidation.
Debt Consolidation Process
The process of consolidating MasterCard debt can be problematic if your debt has started to overwhelm your monthly budget. Debt consolidation is moving your MasterCard debt from several accounts into one loan. It does not address the problem of the mounting debt.
Your Credit and Consolidation
When you accrue significant amounts of MasterCard debt, it is common to start making your payments after the due date and missing payments completely. This starts a vicious cycle that can start to rapidly degrade your credit score.
The Consolidation Loan
The debt consolidation method usually requires you to apply for a loan. If you have bad credit due to problems paying your MasterCard bills, then you may not qualify for a consolidation loan.
If you do qualify for a consolidation loan with bad credit, then you may get an interest rate that is so high that it makes the consolidation more expensive than the individual credit accounts.
Personal Collateral
Another option that people with bad credit can use to get approved for a consolidation account is to use collateral. This is personal property that is used to back the consolidation loan and protect the lender in case you default.
If you are trying to consolidate $20,000 in debt, then you will need to come up with that much in collateral. To be used as collateral the property needs to be paid for and you need to be able to prove that you own it. This makes getting a consolidation loan extremely difficult.
Try Debt Settlement
If you want to be rid of your MasterCard debt, then your best bet may be to use the debt settlement process. Debt settlement is when a professional debt negotiator works with your creditors to negotiate a low payoff amount for each credit account.
Once the negotiator has received payoff amounts from each creditor, he then combines the individual accounts into one monthly payment.
Not Credit Dependent
Debt settlement does not require you to have good credit. There are no loan application forms to fill out and no credit checks required. Anyone can benefit from the help that debt settlement has to offer.
Lower Your Credit Card Obligations
The process of debt settlement lowers your obligations immediately but up to 50 percent. Instead of moving your debt around like debt consolidation does, debt settlement attacks your debt obligations and helps you to be able to pay off your accounts quickly.
Faster Than Consolidation
A debt consolidation loan can last for as long as 10 years. A debt settlement agreement lasts for a period of between two to four years. If you apply the extra money that debt settlement creates by lowering your debt up to 50 percent towards your settlement account, then you can pay it off even faster.
A Long-Term Debt Solution
A debt settlement expert will help you create a personal budget that you can use to create good spending habits and prevent debt issues in the future. Using a debt settlement expert is one part of a solid long-term debt solution.
We have years of experience in helping people to eliminate their MasterCard debt without the use of a consolidation loan. Our financial experts can help you to analyze your monthly spending plan and then come up with a program to develop good spending habits and protect yourself from future issues.
Let our debt relief experts do a comprehensive analysis of your financial situation and work with you on a plan that can lower your debt by up to 50 percent. We can have you debt free in a matter of months and living well within your means. Call our financial experts and let us show you how to reduce your MasterCard debt today.