Are you finding yourself in a hole of debts? Do you have several credit cards? Also, do you have many credit cards debt to be paid? Are you struggling to overpay your debts? So here is some useful information that can help you with that unwanted credit debt.
One of the most common ways of getting rid of these many small debts is debt consolidation. Debt consolidation is a form of debt refinancing. It is the process of using different forms of financing to pay off other liabilities. In simple words, it is the act of taking out a single loan to pay off multiple debts. Consolidation of debts is a personal finance process by an individual to address high consumer debt. There are two ways for consolidation, namely, secured and unsecured.
The decision regarding consolidation of credit card debt depends on several factors including:
Amount of debt
Credit score, etc.
Some of the smartest ways to consolidate debts are-
CONSOLIDATE DEBT WITH A PERSONAL LOAN
A personal loan refers to an unsecured loan with a fixed rate that can help you pay off all your debts. The main goal is to get a lower interest rate than those on credit cards. The personal loan generally starts from 6% APR. Credit cards usually have variable interest rates which change over time. On the other side, loans have a fixed rate of interest. Since a personal loan is considered an installment loan, your credit score may increase. Also, qualifying for a personal loan is good to go process.
DODGE ANY MORE DEBT
One of the smartest ways to consolidate your debts does not to go for any more debts if you cannot bear them. Do not go for buying a new car or a new house. Try and live in a way that is possible without taking any new debt. Control your implied needs. Do not go for more than what to need now. In short, you need to learn how to live happily with what you already have. Keep all your credit card bills and monthly bills on your table. Try building on investments. Save more even while having debts. Try and increase your income this will help you more. Have multiple income sources.
MAKE ONE MONTHLY PAYMENT
Getting your debt into one monthly payment is the smartest way to consolidate debts. But this is only possible if you find the right consolidated leader. Try and get the debts in one monthly payment that is low and you will be able to afford without struggling. This will help you to avoid making more debts on top of the debts that you already have. This will also benefit the company that is helping you with this consolidation.
Get A 0% APR CREDIT CARD
To consolidate credit card debts, a 0% APR credit card is very helpful. This card is available if you have an excellent credit history. All your balances can be transferred to the 0% APR credit card. As the name suggests, there is 0% interest charged on this card balance and it is for a predetermined period of 12 to 18 months. The card also offers 0% APR for the predetermined period on any new purchase too. Once the period ends, interest will start getting accruing on the balance and the regular monthly payment will start. Many 0% APR credit cards do not charge any fees on the transfer of balance and some of them do charge a small fee for a balance transfer.
Debt consolidation helps one to get out of the number of debts and sums it to a single debt. It is a very sensible financial strategy to tackle credit card debts by the consumers. Generally, consolidation of debts cuts down the cost by lowering the interest rates on the debts and reducing monthly payments.
Credit My Debt is one such company that could definitely help you. Along with the best debt consolidation and debt settlement company, you can very easily achieve your goal of a debt-free life. They offer an easy to go service with the assurance of making you debt-free within a fixed period of time. Debt consolidation is a field of their expertise.