When you find yourself loaded with credit card debt, the first thing that may come to your mind is credit card consolidation. Well, like anything, you may be confused on the issue and that’s okay!
I wanted to give you 5 tips that can get you on the right path to fighting off those credit card bills for good. What you’re going to find out is that if you take the right steps, you will be able to save a good amount of money in interest and you should see your debt bills lower, rather than seem to stay the same.
Tip #1 Consider transfers: If your credit score is good enough, you’re going to find that you can get your balances potentially transferred to one credit card. This is a great way to get everything all in one bill. Find a card with a 0% transfer offer and pay as much as you can toward it. Once the time limit is up, rinse and repeat.
Tip #2 Consider a non-profit: There are a lot of non-profit organizations out there that can help you. If you want to go the non-profit route, make sure that you’re dealing with a company that has good reviews, as well as a BBB ratings. Companies that I recommend are some such as Debt Consolidation Care.
Tip #3 Do it yourself: You may find that you don’t need one bill, or a company to help you out. Instead, organizing it yourself can work just as well. Open up your Excel and create a spreadsheet to help you better organize your bills. What you can do is put down the amount owed, the minimum balance, as well as when the payment is due.
Tip #4 Home equity loan: This may not work in this economy, but it’s worth a shot if you have some equity built up with your home. If you do go this route, make sure you chop up those credit cards and focus on paying down that home mortgage, rather than letting it sit there.
Tip #5 A bank loan: Like a home equity loan, you may want to talk with a bank to give you a personal loan. As long as its not too big, you should be able to get approved. Make sure to compare apples to apples though when it comes to interest rates. It makes no sense to get a large loan if the interest rates are going to be higher.
These tips should help you consolidate your credit cards. Just because you have one bill, it doesn’t make it easier. This is why you should always compare the interest rates when doing so, just to make sure you’re always saving money.
