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Easily Consolidate Credit Card Debt

Updated on November 20, 2019
Nicoartz profile image

I have done a lot of SEO content writing for websites; thus, I have done a ton of research about loans, credit cards, and consolidation.

Save thousands monthly when you consolidate credit card debt

So, you've gone a little wild and crazy and maxed out a few of your credit cards. Ok, you've maxed out ALL of your credit cards! Without really thinking about the consequences of your reckless spending sprees, you're now faced with recurring monthly interest fees and minimum payments that are as staggering as the credit card debt itself! You’re probably thinking your only option is bankruptcy, and a few years ago you may have been right. Fortunately, other options exist that may bail you out of the nightmare associated with bankruptcy and its long-term impact on your credit. Consolidating credit card debt may just the salvation you need!

High interest rates? It may be time to consolidate your debt.

High Interest Rates
High Interest Rates | Source

What does it mean to consolidate credit card debt?

Consolidating credit card debt is the process of combining several high liabilities, high-interest-rate loans into one combined loan. Essentially, this means you take on a new loan with a lender who in turn pays off all of your other loans. On the surface, the benefits of consolidating may not seem clear, but they can be tremendous! The first thing a consolidation loan does is to lower your monthly interest rates. Credit cards can have interest rates from 13% or even as high as 28%, depending on your credit score when you applied for the loan. This means that most of your monthly minimum payment is going towards interest. In fact, making a minimum payment on a single credit card can keep you in debt almost indefinitely. With credit card consolidation loans you can expect a drastically reduced interest rate, sometimes as low as 6%! What this means is your monthly payment is going to be lower each month and more money is going to the principal of the loan and less towards interest. Another benefit of consolidating credit card debt is your minimum required payment will be vastly lower than your individual credit cards, decreasing your monthly required liability. For example, if you have 5 credit cards, all maxed out, you are required to pay a monthly minimum on all 5 cards. With a consolidation loan, you make only one minimum payment against the total consolidated loan amount.

Save hundreds, even thousands, when you consolidate credit card debt

Did you know if you consolidate credit card debt, you can save hundreds... even THOUSANDS each month? Not only will this mean more cash in your pocket at month’s end, but it will allow you to avoid bankruptcy while building a strong credit history.

Repayment Plans

Credit card consolidation loans are offered at low-interest rates with attractive terms and options, making them an ideal solution for those seeking to shed their credit card debt. The repayment period may be stretched over several years, as many as 30, depending on the need of the borrower. Stretching the repayment period lowers the monthly payment, making it an affordable and attractive option for those with a large debt.

Stop Throwing Money Away
Stop Throwing Money Away | Source

Concerns with consolidating your credit card debt

The main concern with consolidation loans is that many people may be tempted to consolidate their unsecured loans into a secured loan. Unsecured loans allow borrowers the liberty of obtaining money with little risk to their personal possessions if they were to default on the loan. With a secured loan, borrowers must put up some form of an asset as collateral against the loan amount. Many borrowers who consolidate high interest credit card loans put their home as collateral. If the borrower defaults on the loan payment, the lender keeps the collateral and has the legal right to sell the property to try to recover their money. Additionally, they may still sue the borrower for any fees associated with the process and for money that is not recovered under the sale of the assets.

Another concern with the consolidation of credit card debt is the extended loan terms. Although the monthly payments can be significantly lower, the total amount paid over the course of the loan may be more than without consolidation. All options need to be weighed as the amount paid varies on a case by case basis. If you've run into some trouble with your credit card debt and need help, it's recommended you visit a debt advisor before undertaking a consolidation loan.

Avoid credit problems, collection calls, and the hassle creditors chasing you down every waking minute of each day! It's time to own up to your mistakes and your reckless spending sprees with your plastic money. The debt is there, and it's not going away until you take action and responsibility for it. The first step on the long road to financial recovery is going to start with your choice to consolidate your credit card debt.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2019 Jason Nicolosi

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    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      4 months ago from AZ

      Thanks so very much for taking the time to read my articles, Lorna. I truly appreciate it. It super important that people don't spend above what they can afford. People want things in the "Now", so they throw their purchases right on the credit cards. Before you know it they are up to their chins in debt.

    • Lorna Lamon profile image

      Lorna Lamon 

      4 months ago

      Great advice Jason and particularly useful as Credit Card debt can spiral out of control very quickly. However, it is concerning that many borrowers put up their home as collateral - glad you pointed this out. It is always wise to weigh everything up. I enjoy these articles.

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      4 months ago from AZ

      Thank you, Iqra. I'm glad you had a chance to read it. I'll have more poems up soon as well. I appreciate your comments.

    • Iqra431 profile image

      Iqra 

      4 months ago from Pakistan

      again an informative and well reasearched article. It really quite helpful, i get to know alot more from this article ... keep writing jason..

      waiting for your poems to be published soon...

      great job ....

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      4 months ago from AZ

      Thanks so very much Asad. I appreciate your comment.

    • Asad Dillz profile image

      Asad Dillz Khan 

      4 months ago from United Kingdom

      This is very useful, thanks for sharing this important piece of information. An important and helpful hub. You explain everything Very beautifully. Excellent Job!

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