Credit Card Debt Consolidation – Tips To Take Advantage Of This Debt Relief Option

. If you are struggling to keep your credit score intact by making minimum payments on these bills, consolidating this debt is a good idea that you should consider for several reasons:

#1 - Fixed payments. Much like auto loans, consolidation loans are installment loans. They give you a fixed amount that you need to pay every month so you can pay it off. Credit cards, on the other hand, ask for a "minimum due". If you are going to pay your credit card balance off in a timely fashion, you have to pay more than the minimum. The problem is they don't tell you how much more you need to pay in order to pay it off quickly. You are left to your own devices. You give them a little extra whenever you can and hope you are making a dent in it.

#2 - Concrete end dates. Consolidating your debts lets you know right away when you will have them paid off. When you make minimum payments on credit cards, most of the principal balance carries over to the next month making it almost impossible to completely pay it off. Consolidation loans, however, are laid out with repayments that are just 18 - 60 months. When you send in your last payment, you have eliminated your debt.

#3 - Lower interest rates. If you have made one late payment on your credit card, you may have been subjected to an increased interest rate for the life of your outstanding balance, and not even know it. It is not uncommon for people to be paying 18% to 22% in credit card interest rates. Consolidation loans have interest rates that could be as little as half of what you are paying now. Lower interest rates equal lower payments, which means you get to keep more of your hard earned money in your pocket every month.

#4 - Easier manageability. Multiple credit card or loan payments can be a real hassle. Each comes separately and has a different due date. It is not uncommon for people to have bills that are due every week of the month. Debt consolidating is a good idea in order to manage your bills better. When you consolidate, you only have one loan and one payment to deal with. Once that payment is done, you are done for the month. No longer will it be necessary to juggle the funds from your paycheck to ensure multiple bills can be paid.

Realistically, you could spend over a decade trying to get your bills paid off if you are only paying the minimum. Why would you want to do this when low interest debt consolidation is an option? You could have fixed payments, a set end date, pay lower interest rates, and an easier manageability of your monthly finances. Do not be afraid to explore the options that will make your monetary life a little easier. Once you feel the relief, you may wish you had done it sooner.

Credit Card Debt Consolidation Tips To Take Advantage Of This Debt Relief Option

By: Burgess Arnold

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