Best Way to Consolidate Debt
What is the Best Way to Consolidate Debt?
The best way to consolidate credit card debt varies by individual, depending on your financial circumstances and preferences. For some, the best way to consolidate debt may be paying off smaller balances first and then adding those payments to the bigger bills until those are paid off. Others might consider transferring balances to one credit card or getting a consolidation loan. However, consolidating balances to one credit card or using a loan can be risky because, if you need to borrow additional money, it may be tempting to use one of the accounts with a zero balance. Then the debt grows, and you can find yourself in financial trouble quickly.
You can avoid falling into debt before it happens, however. Here are some tips to achieve this:
- Keep balances low to avoid additional interest, and pay bills on time.
- It's OK to have credit cards but manage them responsibly. This maintains a history of your credit report. Those who have no history of credit cards are considered bigger credit risks.
- Avoid moving around debt with a credit consolidation loan. Instead, pay it off.
- Don't open several new credit cards to increase your available credit. You run the risk of accumulating more debt, which you may not be able to repay.
Despite anyone's diligence in managing their money wisely, sometimes financial hardships happen because of a job loss, medical condition, divorce, or other life events. If you have problems making ends meet, contact your creditors or a legitimate non-profit agency that specializes in credit counseling services for assistance. Do this as soon as possible to see how consolidated debt can help relieve the burden of financial stresses. The longer you wait, the more challenges you'll encounter. Consolidating debt is often your best alternative in these situations, and a counselor can help you with the process.
Choosing the Best Way to Consolidate Credit card Debt
The best way to consolidate debt is to consolidate in a way that avoids taking on additional debt. If you're facing a rising mound of unsecured debt, the best strategy is to consolidate debt through a credit counseling agency. When you use this method to consolidate bills, you're not borrowing more money. Instead, your unsecured debt payments are consolidated into one monthly payment to the agency, which in turn pays your creditors each month. Your credit counselor works with your creditors to try to reduce your interest rates and eliminate extra fees, like late charges or over-limit charges.
ACCC Can Show You the Best options for bill consolidation
Would you like to learn more about the best way to consolidate debt? Then look no further than American Consumer Credit Counseling (ACCC). We are a non-profit credit counseling agency with more than 22 years of experience. We have helped thousands of clients become free of their financial burdens by consolidating debts. Our outstanding commitment to customer service shows with our A+ rating and accreditation through the Better Business Bureau.
This is what clients are saying about our credit counseling and debt management services:
Aug. 9, 2020
I had a clear and concise plan outlined with helpful goals and pointers. I am so excited at the prospect of being debt-free in a few years!
Melissa B from VA
Aug. 9, 2020
The staff is amazing. I have never once been felt ashamed about getting in this financial position, and they always treat me with the utmost respect.
Ronald T from FL
Aug. 24, 2020
Perkins explained things in a clear way, patiently answering my questions. He was positive, encouraging, and professional. This was one of the best customer service phone conversations I've ever had, thank you.
Tara C from OR