The method you choose to consolidate credit debt is dependent on your debt amount and the level of discipline you are willing to maintain. Choose a consolidation plan with care. Your aim should be to achieve your objective right from the beginning. Most people think that consolidation is a loan that takes multiple consumer accounts and consolidates them into one. This is true, as you will now be paying only one loan with one monthly installment. You can also now qualify for a consolidation without providing any collateral. Lenders in our network have repayment plans and terms that have taken care of the unsecured loans. Today, the best way to consolidate credit card debts with bad credit is to consider consolidation lenders.
Ways to Consolidate Debt
There are different ways that people use to consolidate their debts. They include taking out consolidation loans, credit counseling and debt settlement. However, the most effective one is taking out consolidation loans.
- Credit counseling is a method when you trying to get out of debt without interfering with your credit. It involves making one monthly installment to a credit counseling organization. The organization will then send the payment to all your creditors accordingly. You will also be liable to a reduced interest rate and at times, no interest rates. The total time you will take is also shorter depending on the amount of debt. With this, you will still be having different loans to pay even though you will only be dealing with one organization. You will still feel the pressure.
- Considering consolidation loans, your payment and interest will be lower. You will also pay for a longer time but you should have cleared off all your loans immediately. Consolidation loans allow you to accept new payment terms that are independent of your previous creditors. You will be dealing with direct lenders like those in our network. The lender you choose will pay off all your loans and then offer you a flexible repayment plan.
- Debt settlement: this is a method that is becoming common too. You will have a consultant who will negotiate with your creditors to reduce the balance of your unsecured debts. After which, you then make payments to the consultant and they will forward your payment to the creditors. This is to continue until you complete the balance.
It is important to note that the best way to consolidate credit card debts is to ensure it has significantly lower interest. Interest plays a huge role in making the method effective and also reducing the total amount you owe. You are only to choose an appropriate lender who will offer to pay off all your debts and then require you to pay a reasonable monthly installment. There is no paperwork required as you can even do this from home. You need to understand that secured loans will give an even lower interest rate but you will also be risking your collateral. You can easily get a lender working with us who is willing to offer you a consolidation loan without any collateral. You will bring all your credit card debts under one new credit card and all your other debts shall be cleared.
Benefits of a Debt Consolidation Loan
- When you use the best way to consolidate credit card debts, you will be sure of eliminating all your credit card debt at once. Actually, you will only be responsible for one loan now and not many debts to pay for different credit cards.
- Due to the fact that credit cards have high finance charges, it is difficult to pay off the balances. Mostly, the minimum payment barely takes care of the finance fees. This makes it difficult to reduce your credit card balance. However, if you decide to consolidate credit card debt using a loan, all your balances are combined together. In addition, the loans will be offered at reduced interest rate, hence you will be on your way to becoming debt-free.
Factors to Consider Before You Consolidate Debt
- You need to get the exact amount of credit card debt, you have and make a comparison on the interest rate. The consolidation loan you choose should have a lower interest rate. Ask your lender to show you all the calculation to ensure that the total amount you pay at the end is less than your current credit card debt. Fortunately, lenders working with us are experts in the financial matters and therefore, you will get the best advice and deals.
- Ensure that you get a lender who fully explains the terms and conditions to you before allowing you to sign up. We will link you to lenders who are willing to explain all the terms, total amount and charges. You will also be able to know any additional fees. Furthermore, the repayment plan will be clear to you, hence you will know the exact time when your loan will be completed.
- You should be able to acquire your credit report and also get more information about your lenders from the department of Consumer Affairs in your respective state. Lenders working with us are duly registered and all work within the set rules of your particular state. All your personal and credit information will be held private as per the law.
- Confirm whether your lender offers credit counseling. Reputable lenders like those in our list offer their clients with debt management and counseling services at no extra cost. If you choose one of the lenders in our network, you will be able to learn tips on keeping away from cumulative debts in the future.
- Choose a consolidation loan that does not require you to put up your home as collateral. Even though many traditional lenders require you to have collateral, those lenders you will find with us have unsecured loans. With them, your property will be safe.
- Ensure that the whole deal is not geared towards pushing you further into debt. Your lender should be giving you a loan that is enough to pay your credit card debt in full. The best way to consolidate credit card debts is to have a consolidation loan that will pay all your debts. When you take out an excess loan amount, you are probably going to use the excess amount unnecessarily and will have to pay back more. Your main aim for consolidation is to clear your credit and pay the least amount possible at the end.
Many people are still trying to find the best way to consolidate credit card debts. Actually, it is quite overwhelming to deal with multiple payments all at the same time. With consolidation, you can find a lender who will offer you a reduced fixed interest rate throughout your repayment period.
If you want to save more, then you cannot avoid consolidating your credit card debts. Start by calculating the current interest rates you are paying and get a total amount in your hand. Go ahead and look through the many lenders we work with and compare the totals. You will definitely find a lender that fits your financial profile. Lenders with our network work to make your financial life easy and relaxed.