Lower credit card debt without consolidating
Your debt consolidation loan will likely come with a more extended payment period, as your balances are spread over time to help reduce your monthly payment.
That means you’ll be holding debt longer, and you’ll need to be responsible with spending and budgeting so that you don’t end up accumulating more on top.
If you are carrying minimal debt – ,000 or less – you may be able to transfer that to a zero balance credit card as you’ll be able to pay it off during the promotional period.
But for debt over this amount, your best bet for credit card debt consolidation is to look at a bank or credit union loan.
If you’re having trouble imagining how to pay off credit card debt, you may be an ideal candidate for debt consolidation.
You’ll have a few options when it comes to loan types for debt consolidation.Your creditors don’t have any claim to collateral should you default, which means they can come after When you have massive unsecured debt, you want to take action as quickly as possible.Let’s say your current credit card debt is ,000 on one card and ,000 on another, both with the national average APR of 16.39%.The goal of your consolidation loan is to get rid of the debts that are causing you to have trouble moving forward financially.If you’ve had a history of late payments, carry high balances, and your debt-to-credit-limit ratio is too high, your credit has probably suffered.