Information on consolidating credit card loans
These are not quick fixes, but rather long-term financial strategies to help you get out of debt.When done correctly, debt consolidation can: There are several ways to consolidate debt, depending on how much you owe.All payments made during that time will go toward reducing your balance.When the introductory rate ends, interest rates jump to 13–27% on the remaining balance.The most-recommended DMPs are run by non-profit organizations.They start with a credit counseling session to help determine how much money you can afford to pay creditors each month.You could get a home equity line of credit, a home equity loan or a second mortgage on your home, or refinance your existing mortgage.Other options include borrowing against a whole life insurance policy and borrowing against you retirement savings.
If you consolidate all bills into one, the single payment should be at a lower interest rate and reduced monthly payment.
If you have a very good credit score (700 or above), the best way to consolidate credit card debt is to apply for a 0% interest balance transfer credit card.
The 0% interest is an introductory rate that usually lasts for 6–18 months.
This can allow you to set aside a portion of your income each month to pay down balances for each card, one at a time.
When you have paid off all the cards, choose one and be responsible with how you use it.
If you need help getting out of debt, you are not alone.