Consolidating credit cards so that you are able to make one more manageable monthly payment instead of multiple payments is one way that you can start to get a handle on your credit card debt. Many people find themselves in heavy credit card debt, and at some point the debt becomes more than they can hope to pay off. Then they end up carrying balances on their credit cards every month, which runs up high interest charges that trap them and keep them in debt.
While credit card companies will never admit it, this is exactly what they want to happen. They want you to pull out your credit card and make purchases reasoning that you will pay them off later. The problem here is that for many people later never seems to come, and they continue to use their credit cards leading to greater and greater debt. If you find yourself trapped in this type of situation, then consolidating credit cards is one of the best options for you.
Consolidating Credit Cards With A Personal Loan
If you are looking at consolidating credit cards one option you should look into is using a personal loan. If you can qualify for a personal loan you can use the money to pay off your credit cards, and then you will have one monthly payment to contend with instead of many. One of the reasons that this is a good option is that personal loan interest rates are generally lower than the interest rates charged by credit card companies. This means that you will probably be able to get a loan payment that is lower each month than the combined total of the credit card payments you were making.
On top of being a lower payment you will also likely pay less total interest on the loan, which saves you money. If you discover that it’s harder to get a personal loan than you expected don’t let this get you down. If you owe a lot of credit card debt this can impact your credit score, making lenders more hesitant to do business with you. So don’t get discouraged if a few lenders say no, keep looking and you should be able to find a lender that will work with you.
Consolidating Credit Cards With Balance Transfers
If you can’t qualify for a personal loan another option you should consider is looking for a new credit card. Now you may be thinking that credit cards are what got you into trouble in the first place so getting another one can’t be a good idea. This might be a true statement except for the fact that many credit card companies will offer you 0% interest rates for a period of time on any balances you transfer to them from an old card. When you aren’t paying interest all of the money you pay each month goes directly to your balance.
If you are able to send extra money you can pay down your debt far faster than you may have thought was possible. As a general rule of thumb you should always make an effort to pay as much of your debt off as possible during the 0% APR period. You should also consider looking for another balance transfer card once the 0% APR period on your current card is close to coming to an end.
Consolidating credit cards so that you have a more manageable payment, with better interest rates, is one of the best things you can do to help get your debt under control. Many people end up owing far more on credit cards than they can ever hope to pay off. It happens, and it’s common so don’t let it get you down. Instead of feeling sorry for yourself you should look for solutions to your problem. Ignoring it won’t help, in fact it will make things worse as late fees and interest keeps adding to your debt. So quit hiding from your problem and develop a plan to get your credit card debt under control. Consolidating credit cards is a great starting point, and when you combine it with a solid budget you can start living within your means while paying off your debt.