Credit card debt consolidation can help to reduce monthly payments and interest rates, making debt more affordable and easier to pay off. There are multiple ways to consolidate that credit card debt and you will want to figure out how to use credit card debt consolidation in the best interest of your lifestyle and situation.
Here are a few different consolidation options to consider.
Non-Profit Credit Counseling
Credit counseling companies can help you go over your finances with a fine-tooth comb and create a plan to help you tackle any debts you have. They will advise you on budgeting, debt management, credit issues, and everything in between. You will want to research any program you consider before starting the work. These counselors can sometimes work as a go-between with your creditors and negotiate lower interest rates or get certain fees waived. Remember that some counselors charge fees and there are other hooks that could be involved.
Get A Personal Loan
Personal loans can be taken out for any reason and many people like to get these loans and use them for credit card debt consolidation. You can use the lump sum from the loan to pay off your credit card balances and then, instead of making multiple payments, you only have one payment to make on the personal loan. It will simplify the payment process and, if you have good credit, you will likely have a much lower interest rate at the same time. Not everyone can get a personal loan and you will want to watch the interest rates and other possible fees with care before signing on.
Consider Balance Transfers
You may be able to move the balance of one credit card to another card. There are actually balance transfer credit cards that offer introductory rates of 0% APR if you transfer balances within a certain time. You can avoid paying interest charges on the old cards and you also simplify things by putting more than one card balance into one place. Keep in mind that if you don’t pay the new card off within the period of time allocated; you will start to accrue interest charges at the regular interest rate.
Click here for more advice from professionals on balance transfers.
Talk To Family Or Friends
If you have a family member who might be able to lend you money, you can come up with loan terms that are clearly outlined for both of you. OF course, you never want to take advantage of someone in your life, so before you move in this direction, make absolutely sure that you have a plan that allows you to pay them back in a steady, fair manner.
It’s nice not to have eligibility requirements, as you would with other lenders, and there may not be any interest rates as well. However, you don’t want to strain that relationship, either and you certainly don’t want to put your family member or friend’s finances at risk.
If you are considering credit card debt consolidation, there are certain benefits that will likely come to you once the process is complete. You can simplify your debts and get a lower interest rate at the same time while making the loan smaller for you to pay overall. But all that will only come if you have the right lender and the right program on hand. It’s important to look through the details of any program as well as the reputation of the lender so you can move forward with confidence. It is your goal to make your debt situation better, not worse. Going ahead once you have all of the information, and appreciate it, is in your best interest.
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