Credit Cards

How Do I Consolidate Credit Card Debt?

How Do I Consolidate Credit Card Debt

There are many ways to consolidate credit card debt, but here are five of the most common. You can refinance with a balance transfer card, consolidate with a personal loan, use your home equity or cash value in an insurance policy as collateral for a low-interest loan. If all else fails, you can declare bankruptcy.

Balance Transfer Cards

Balance transfer cards are designed to help people pay off their high-interest debts faster by offering 0% APR on balance transfers for up to 18 months. This means that if you have $10,000 in credit card debt with an interest rate of 20%, a balance transfer card can help reduce it down to 10%. That’s a savings of $2,000 for 18 months. You don’t need perfect credit to qualify for such cards either. 

Home Equity

You can consolidate credit card debt by taking out a home equity line of credit (HELOC). A HELOC is usually less expensive than a personal loan because there are no closing costs associated with it. However, if you have bad credit or don’t own your home, a HELOC may not be an option. If so, then consider applying for a personal loan instead.

Personal Loan

A personal loan gives you the power to pay off your debts and get back on track financially. You can use the money to consolidate all of your credit cards into one monthly payment, so you don’t have to worry about juggling multiple bills every month anymore. Plus, this type of loan has lower interest rates than most credit cards do, which means more money in your pocket when it comes time to pay down your debt.

Bankruptcy

If you are drowning in credit card debt, it’s time to take action. You can get out of debt and start over again by filing for bankruptcy. The last thing anyone wants to do is file for bankruptcy, but sometimes it’s necessary when exhausted all other options. You can consult a non-profit organization to lawyer up.
To know more about the best credit card offers, visit us at www.chi-cash-advance.com.

COO Annabel oversees the daily operations both for in-office and our remote writers. Her mantra in life is to believe that finding happiness in what we do is the real reward any work could give us- her mantra that also became our company’s.

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