Do you have a few credit cards with high balances and interest rate
? Are you struggling to make the minimum payment on your credit cards and need help? You do have a few options and one of them is a credit card debt consolidation loan. Here are your other options as well as an explanation of what a credit card debt consolidation loan is.
Your first option is to refinance your home and use some of the equity to pay off your high balance and high interest rate credit cards. This is great if you are a homeowner and is the first option you should look into. You do need to force yourself to cut up the credit cards and close the accounts once you have them paid off. You don't want to end up right back where you are not in a couple of years because you will not be able to refinance again without incurring fees so soon.
If you don't own your home or you don't have enough equity you still have options. You can use a debt consolidation service or a credit counseling service. Both will help negotiate the interest rates on your credit cards and will help get your payments reduced. They will set you up on a monthly payment plan, that you can afford, so that you can get all your credit cards paid off in 2-5 years. This is a great option for the non homeowner
The other option you have is to do a credit card debt consolidation loan. You will need to have moderately good credit in order to take out this type of loan, but it will be very beneficial to you. You will be able to get a rate around 8%-10% which will save you a lot of money if your credit cards are up around 20%. Plus you will be able to combine all of your credit cards and even some other loans you might have into one monthly payment that is going to be much lower and much easier for you to manage.
It does not matter which road you take to getting your debts paid off as long as you take the road that fits your needs the best. The important thing is that you get out of debt and give yourself the fresh start you have been dreaming of. You can use a refinance loan, a debt consolidation service, a credit counseling service, or a credit card debt consolidation loan to take care of your debts. Just make sure that you are patient and you follow the plan that is given to you to get out of debt.