Credit cards are the most easily accessible form of credit we have today. As a matter of fact, in United States, an average American has minimum of 4 credit cards in their name. So, if you are one of them and also have huge credit card dues, think of consolidating your debts to make the monthly installments more manageable.
If you have multiple credit cards in your name, it becomes very difficult to trace the expenses and make payments simultaneously. There is every possibility that you may forget paying the minimum due within the stipulated time or maybe you are in financial constraint.
It is a known fact that if you have string of credit cards, you tend to spend more. As a result, monthly EMI becomes more than what you earn monthly. So, you end up paying just the minimum amount due. And, before you know it the total balance becomes too high, followed by more exorbitant monthly charges. Thus, you end up incurring insurmountable debt which is beyond your paying capacity.
How to consolidate credit card debt?
It is of foremost importance to know how to consolidate credit card debt. Debt consolidation makes monthly payments quite affordable and manageable. Since you make only a single payment, you are left with more cash in hand. Consolidation also helps you settle the debt sooner leading you to a debt free life. This process can also help you in rebuilding your credit score after your debt is paid off.
Consolidating debt is a better option if you want to improve your credit standing in future. There are multiple advantages of this kind of consolidation. But, before you go ahead, rethink on the below mentioned points once.
1. Rethink First
Before you go ahead with consolidation, rethink if it is actually needed. There is no point to consolidate if the current rate is good. You can save substantially if you opt for consolidating all your debt.
2. Comparison table can help you judge
Make a comparison table with one column mentioning your current rate and another column with the new rate. If the new rate is less than the current rate, then consolidation makes sense.
3. Take professional help
Consultant financial experts have vast knowledge on credit cards and can certainly help you in consolidating credit card debts.
4. Do research
Do a little bit of research before you go ahead with consolidating your credit card debt. Verify if the financial expert you are hiring belongs to a reputed institution. Ensure that there are no hidden fees. Some companies charge a minimal fee in the beginning, but later ask for more fees than what was agreed.
5. Sum up all the dues of the cards
Sum up the total amount due in all the cards and consult professionals to grab the best deal. You may have greater probabilities of being offered the best packages for consolidating your debts.
Conclusion
Consolidating credit card debt makes life easier. Paying a single monthly bill for all the credit cards is really worth it. Consolidation not only improves credit standing, but also makes life hassle-free.
