If you are feeling crippled by credit card debt it can be difficult to see a way out. With tempting opening offers and easy setup, many of us get carried away when it comes to credit cards. Before you know it, you can be saddled with a whole host of debts which are hitting you from all sides.
If you’re facing the troublesome task of dealing with multiple credit card debts, then it could be a wise idea to consider consolidating them. This is where you bring all of your debts together into one payment, thus creating a more centralised and manageable sum with a single interest rate. Once your debts have been consolidated, you no longer need to worry about juggling multiple different payment dates and you can create a clear payment plan to conquer your debt for good. Here are some top tips when it comes to consolidating your credit card debt.
Speak With an Advisor
Many debt consolidation companies will provide free, no-obligation advice relating to your credit card debt, so take advantage of this. They will be able to make an educated evaluation of your situation, and ascertain whether credit card debt consolidation is the right approach for you.
Check the APR
Many debt consolidation providers come with a low introductory APR, or Annual Percentage Rate. This determines how much interest you will need to pay on your loan, so it helps a lot to opt for a company who provides a longer introductory window. You can take advantage of this time period to escape the rates you would usually have to pay to your banks for your credit card debt. You can put the money that you save on interest towards your debts to allow you to pay them off more quickly.
Create a Monthly Plan
If you’re opting to consolidate your credit card debts, it pays to go in with a plan. Work out exactly how much you owe in total and do a realistic assessment of how much you can afford to pay back each month. When making your plan, you should bear the introductory APR window in mind, as you may be able to save yourself a lot of money on interest by making larger payments within this timeframe. Ensure that you factor in all of your normal obligations, such as bill payments, to your monthly plan – by folding on these you will only counteract your good work and end up with worse credit than before. Utilise the free online calculators which are available to help you with your payment plan, as this will allow you create a realistic schedule in line with your income. By being strict with yourself and sticking to your goals, you can combat your debt strategically and quickly.
Take Control Today
For many people, credit card debt consolidation provides the lifeline they so desperately need to get on top of their finances and combat bad credit. If you’re struggling with credit card debt, why not see if this could be the right solution for you to take control of your finances once and for all and speak to an advisor today?
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