Consolidate Credit Cards Safely
Edited by Melvin Magadia, Lynn
Debt consolidation is one of the most common but risky ways of settling credit card bills. It has given people an easy way out of their financial predicaments. With credit cards, one can easily fall into the trap of spending too much, so that they fall into debt. Fortunately, there are legal and safe practices to consolidate credit card bills.
- 1Get a Personal Loan
- 3Once consolidation commences, it is recommended that you stop using the card.
- 4Since the balance will accrue interest on a daily basis, it is best to settle the daily interest.
- 5Consider a Zero Percent Balance Transfer Credit Card
- 7Although you can still use the credit card to settle the remaining balance, one option is to apply for a zero percent balance transfer card. However, make sure that this is applicable to new balances.Without a doubt, a credit card still offers convenience.
- 8Aside from that, you may also be charged for the balance transfer.Keep in mind, however, that you may be charged with annual or monthly fees.
- 9Consider a Bad Credit Loan
- 11But if you are in this situation, a secured loan for credit card consolidation will provide huge benefits for you.One of the factors for the denial of unsecured bank loans or zero percent balance transfer cards is bad credit history.
- 12A secured loan will allow you to determine the monthly payments and hence pay your balance much faster.
- 13Set A Budget
- 15Practice living within your means and keep away from indulging in unnecessary expenses. Examine your income and expenses and set aside a certain amount of money for paying the consolidation loan.To settle your balance promptly and quickly, you need to save money for settling debt.
- 16Do Some Scouting
- 18You can start with the Internet, ask for a referral from your friends or relatives, or check the Yellow Pages.When getting a consolidation loan, make sure you shop around for the right company.
- 19You might find yourself in a deeper hole if you sign without understanding what you are getting into.Before signing the loan, you must first understand the terms and conditions of the agreement.
- 20These are just some of the ways you can get yourself out of a huge financial hole. Still, the best option is to control your expenses and live within your means. A credit card will come in handy, but use it only for emergencies.Credit card consolidation offers a solution to your debt problems.
- Loan consolidation is a bad option if you end up paying more than what you are currently paying. Remember your aim is to lower interest, not the other way around.
- Never take out a loan if you cannot meet the repayment requirements. You can end up having more problems in the end. Make sure to have a buffer every month after meeting your financial obligations.