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Top 2 Options for Credit Card
Consolidation
By: NewHorizon.com
Credit Card Debt Consolidation Loan
Acquiring a loan from a bank, a private lending firm, or credit union are the first debt consolidation options.
Continuous accumulation of debt can be avoided by paying off credit card debt with a loan.
submit only one payment each month, and enjoy a lower rate of interest.
Debt consolidation loans require the submission of collateral. If you have a large amount of credit card charges, you may need to submit collateral with a higher value such as a home or vehicle.
After consolidating, keep in mind that you have a responsibility to submit your payments on time since defaulting on your debts would mean losing the property to your lender.
Balance Transfer Credit Card
acquiring a zero balance transfer rate credit card.
o By transferring your charges to a credit card with 0% APR, debt repayment can be much easier.
o The 0% APR offer is just a promotional rate, not a permanent deal.
o Under the new credit card law, credit card issuers must offer a minimum promotional period of 6 months, and no less than that time frame.
o After the introductory rate, the regular APR will apply.
o Be aware of what the regular APR would be when the introductory period ends.
transferring all your balances to one
balance transfer card can max out your credit limit which can hurt your credit rating.
Avoid charging new purchases to your credit cards especially while you are still working on repayment.
to make sure that there are no unauthorized charges or illegal
transactions made in any of your accounts
order a copy of your credit report
before consolidating.
You must send a dispute letter right away to the bureau that issued your
report if you discover some errors in your credit report.
Source:A Closer Look at Credit Card Consolidation
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