Consolidate Credit Cards Safely

3 Parts:

Steps

Warnings

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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.

1. 1
   Get a Personal Loan

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2. 2
   
   
   

   

   A personal loan can help you settle credit card bills quickly

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   This way, you know how long it will take to settle your credit card debt and the total monthly payment. Here are a couple pieces of advice to keep in mind when getting a personal loan for consolidation.

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3. 3
   Once consolidation commences, it is recommended that you stop using the card.

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4. 4
   Since the balance will accrue interest on a daily basis, it is best to settle the daily interest.

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5. 5
   Consider a Zero Percent Balance Transfer Credit Card

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6. 6
   

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7. 7
   Without a doubt, a credit card still offers convenience

   .

   Although 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.

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8. 8
   Keep in mind, however, that you may be charged with annual or monthly fees

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   Aside from that, you may also be charged for the balance transfer.

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9. 9
   Consider a Bad Credit Loan

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10. 10
    

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11. 11
    One of the factors for the denial of unsecured bank loans or zero percent balance transfer cards is bad credit history

    .

    But if you are in this situation, a secured loan for credit card consolidation will provide huge benefits for you.

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12. 12
    A secured loan will allow you to determine the monthly payments and hence pay your balance much faster.

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13. 13
    Set A Budget

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14. 14
    

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15. 15
    To settle your balance promptly and quickly, you need to save money for settling debt

    .

    Practice 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.

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16. 16
    Do Some Scouting

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17. 17
    

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18. 18
    When getting a consolidation loan, make sure you shop around for the right company

    .

    You can start with the Internet, ask for a referral from your friends or relatives, or check the Yellow Pages.

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19. 19
    Before signing the loan, you must first understand the terms and conditions of the agreement

    .

    You might find yourself in a deeper hole if you sign without understanding what you are getting into.

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20. 20
    Credit card consolidation offers a solution to your debt problems

    .

    These 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.

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• 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.

If you have problems with any of the steps in this article, please ask a question for more help, or post in the comments section below.

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