What Happens to Your Credit Cards when You Opt for Debt Consolidation/Debt Restructuring?

When you are stressed because of your finances, it can affect everything from your ability to get a good night’s sleep, to your personal relationships. If you are ready to move forward and alleviate this financial stress, then you may begin working with a debt consolidation and financial rehabilitation company, such as 4 Pillars. However, you may wonder what is going to happen to your credit cards when you enter into this type of plan. Learn more about this here.

Debt Consolidation and Credit Cards Don’t Work Together

When you opt for debt consolidation/debt restructuring, one of the first things you have to do is stop using credit and ultimately give up your credit cards, as well as other sources of credit you have. This can actually be quite empowering, as the credit cards are likely part of the reason you are in this financial mess to begin with. Also, you probably have already reached your limit on your cards, which means you can’t use them anyway.

Save Money

A little-known side effect of a debt consolidation plan from 4 Pillars and destroying your credit cards is that you won’t have to worry about spending money on the over limit fees any longer and high monthly interest charges. Depending on how many credit cards you have, this may help you save several hundred dollars a month. All this can be put toward rebuilding your financial health.

It Will End Collection Calls

Once all of your creditors have accepted your repayments through the debt consolidation program, you won’t have to worry about constant collection efforts and calls. This will also help to alleviate some of your financial stress.

As you can see, giving up your credit cards isn’t the worst possible outcome and should be looked at as part of a long term strategy to create financial stability. A debt consolidation and financial rehabilitation plan from 4 Pillars will provide the strategy to deal with your debt, educate you on budgeting and the credit system and provide a comprehensive credit rebuilding program. To learn more, contact us today.