Tips for Getting a Credit Card Consolidation Loan

Millions of people have some level of credit card debt. Many of those people are also deep in debt with thousands of dollars charged up over several different credit cards. Unfortunately, this debt can have psychological, emotional and even physical consequences if you get stressed out about the money that you owe. Fortunately, you can learn how to get credit card consolidation loans and relieve some of the pressure you may feel.

Gather All of Your Credit Card Debts

The first step in getting a credit card consolidation loan is to gather all of your credit card bills. Make a list of how much you owe each one and come up with a grand total of how much you need to borrow in order to pay them all off.

Use the Equity in Your Home

If you own a home with a good amount of equity in it, get a home equity consolidation loan. These types of loans are much better financially because you can get a lower interest rate since your home is being put up as collateral. In the long run, this means you will be paying less money in all over the course of the credit card consolidation loan.

Get a Personal Loan

For people who still have a decent credit score despite their credit card debt, personal loans may be an option. You can visit your local bank or financial institution and apply for a loan to pay off your credit cards. Personal loans carry a higher interest rate than home equity loans, but the interest rate is typically lower than the rates you are paying on your credit cards.

Settle the Balance with Your Creditors

If your credit card payments have slipped for a couple months, you may be able to settle for less than what you owe. Call each credit card company and ask to have any late payments or overlimit fees removed. If you tell them you are going to pay off the balance right away, they may be willing to satisfy your request. This does not always happen, but it never hurts to ask.

Use the Money from Your Loan to Pay Off Debts

It may be tempting to take the money from your loan and have some fun with it. However, this will simply put you back in the same position you were in before you got the loan. Be sure to send your creditors the money you owe and make the payments on your credit card consolidation loan as agreed to maintain a decent credit score.

Credit card consolidation loans are an ideal way to pay off debt if you let it get out of control. However, it is important to change your spending behaviors right away so you do not fall into the same financial trap that required a credit card consolidation loan in the first place.

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viking305 6 years ago from Ireland

Interesting advice here thanks. Will be looking into to some of your suggestions soon

make157 6 years ago

very nice article, keep writing

Scott Beasley 4 years ago

Thanks for the suggestions you are revealing on this blog. Another thing I would like to say is the fact getting hold of copies of your credit report in order to check out accuracy of the detail may be the first action you have to accomplish in credit repair. You are looking to freshen your credit reports from harmful details flaws that spoil your credit score.

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