If you possess numerous charge cards inside your pocket book that are costing a whole lot of cash in charges and monthly bills, you may be asking yourself if you could combine your credit card bills into a single monthly payment. It could end up being a sensible option if the interest on your new loan product or debt consolidation arrangement is lesser compared to what you are spending right now. If you need to consolidate bills, generally there are a couple methods an individual may undertake.
The first way is to get a debt consolidation loan. Basically you get a loan and you pay off your credit cards from the proceeds of the loan. This allows you make one monthly payment instead of several. If the interest of the loan is lower than the rates on your cards, you save more money over the life of the loan. However, this can get you deeper in debt because the cards you just paid off have zero balances which allow you to acquire more debt.
The second way to consolidate credit card bills is to enroll in a debt consolidation program. People often resort to this option after being denied a debt consolidation loan. The great thing about these programs this that it is open to people of all credit types. It is not a loan so you can't get in any further financial trouble. They negotiate with your creditors to lower your interest rates and waive over the limit fees. With no fees or high interest, more of you payment go toward the principle balance. One payment is made to the consolidation service and they disburse payments to your creditors.
In the event that you are engrossed in credit card debt and was refused a debt consolidation loan, a debt relief program can allow you to combine credit card payments. At near 30%, it could take many years to pay back your balance. Along with decreased rates, bills could be paid off in a several years.