3 Methods of Consolidating Your Credit Card Debts
Credit card debts are one of the most expensive debts. There isn’t any easy way as such to get rid of it. Moreover, since average interest rates on credit cards are pretty high, most choose to go for credit card consolidation. Consolidating credit card debts provides a manageable solution to your never ending debt problems.
You’d obviously question whether or not it is worth consolidating credit card debts. The answer lies in the fact that since interest rates are so high, it is worthwhile to consolidate your debts before it goes out of hand. Now, credit card consolidation can be done in the following three ways.
1. Credit card consolidation program
This method actually helps you deal with multiple credit card debts together. Most importantly credit card consolidation saves you time. You’re less confused as the entire process becomes simpler and hassle-free with the credit card consolidation company negotiating on your behalf. You’d now have only one payment to make each month.
You can pay off your credit card bills within a period of 4 to 5 years through credit card consolidation program. However, the time period is solely dependent on your debt amount and financial means. Struggling alone with credit card bills can be difficult indeed, so it’s always advisable to seek help and undertake credit card consolidation.
2. Credit card consolidation loan
You pay off all your credit card debts together by taking one loan. Having done so you’re left with only one existing loan on which you pay interest. Quite obviously this payment is less compared to all the interests put together of all your credit card debts.
Here you get the chance to do away with all your credit card debts in one go by taking just one major loan. A significant credit card debt cannot simply be repaid by mere budgeting. Taking a loan to pay off all your debts is recommended.
3. Balance transfer credit card
Credit card consolidation can also be undertaken with the help of credit cards which offer a low interest. It’s advisable that you transfer all your credit card debts to this low or zero interest card. This would give you the opportunity to move forward on getting rid of your credit card debts.
However, beware that this low interest or interest-free period will be limited. Unless you’ve finished paying off your debt within that period, it can amount to a greater debt than the one you already had.