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Consolidate Debt

The Role of Credit in Debt Consolidation

woman works on her credit and debt consolidation

Consolidating Credit Card Debt

Stop fearing your credit card statements at the beginning of each month. You may have high balances, but you can start getting rid of those and shifting that burdensome debt to a structured plan that you may find easier to pay off.

Consolidating credit card debt is a great way for you to take back your personal finances and get your debt under control. There are a couple notable options: a balance transfer where you transfer balances to a 0% APR credit card, or getting a personal loan for credit card debt. To help you decide which options is best for you, you should know where you stand from a credit-worthiness standpoint.

One of the he first steps in consolidating credit card debt is to get your credit report – which you can get for free once per year from each of the big three credit bureaus. Your credit report plays a role in determining the credit terms of a loan or card.

Take some time to search online to get an understanding of what would be available to you. A great way to learn how much you could save and what you can expect to pay as part of your credit card consolidation loan is to use both a debt consolidation calculator and a monthly payments calculator for personal loans.

Tips for Your Consolidation

You’re just about ready to consolidate your credit card debt! You may think it’s a tough first step, but you could be happier in the end.

To help you along the way, there are some other great tips that can make the whole process easier for you. Here are five that will start helping you today:

  • Use free financial tools to look at your spending.
  • Limit your use of credit cards if you are unable to pay the balance in full each month.
  • Create a monthly budget. You’ll know what you need in the bank for expenses and you can see where you’ve got room to splurge[i].

Paying off credit card debt is a great way to get back on track to saving for the future. No matter where you are in life, it’s a great time to consolidate credit card debt.