How to consolidate credit card debt
Need to know how to consolidate credit card debt?
Is your credit card debt weighing you down? Are you overwhelmed by trying to pay the minimum balances on multiple cards each month? If so, you've probably wondered about how to consolidate credit card debt to make your life a little simpler and hopefully reduce the amount of interest you're paying.
With credit card loan consolidation, you consolidate credit card debt by taking out one new loan to pay off a variety of credit cards bills. If the new loan has a lower interest rate than the average rate of your credit cards, you can theoretically save money on the interest you have to pay each month.
But rather than asking how to consolidate credit card debt, the real issue is how to consolidate credit card debt while not racking up more debt in the process. Debt consolidation plans can have high fees, and you're not actually guaranteed to save money on interest. Also, if you haven't solved the financial problems and habits that contributed to your debt in the first place, consolidating debt may not solve your debt issues in the long run.
How to consolidate credit card debt:
- Research credit counseling companies, pick one with a good rating, that is a nonprofit and has been in business for at least 10 years and work with them to discuss your options for credit card debt consolidation.
- If you determine that credit card debt consolidation is the best option, review the terms and conditions thoroughly before you commit.
- Execute the agreement and fulfill your obligations.
When you want to know how to consolidate credit card debt, ACCC can help.
When you want to know how to consolidate credit card debt successfully – or whether consolidation is the best strategy for you – the credit counselors at American Consumer Credit Counseling (ACCC) can help. We're a nonprofit organization dedicated to helping people just like you find their way of debt. Our highly trained counselors can help you understand all your options for paying down debt, including how to consolidate credit card debt with a consolidation loan, and provide information on the pros and cons of credit card debt forgiveness and credit card debt negotiation as well.
How to consolidate credit card debt without taking on new loans.
For clients who want to know how to consolidate credit card debt without having to take out a new loan, we recommend a credit card debt management program. Rather than consolidate debt, you'll actually be consolidating payments: you'll make one payment each month to us, based on a budget we help create for paying down your debt over time. We'll then be responsible for paying your bills each month. With just one payment to make, you'll find it easier and less stressful to keep up with payments. And we'll talk to your creditors about possibly lowering your interest rates and finance charges to help you pay off your credit card debt more quickly.
Contact an ACCC credit counselor to learn more about how to consolidate credit card debt, and to get answers to questions like "What does a debt counselor do?" and "What is a good credit score to buy a car?"