5 Actionable Tips for Consolidating Credit Card Debts

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Women love shopping! When it comes to the latest designer attire or expensive jewelry, most women find it difficult to resist their urge to shop. When shopping on a budget seems too dreary, they resort to credit cards, and that is when things become more complicated than they should be.

If you are the same way, chances are that you are weighed down by many existing credit card bills. Thinking of credit card debt consolidation may offer you some relief. In credit card consolidation, you need to first decide whether you want to take a new loan or enroll for a debt management plan. Both options allow you to pay off your multiple existing loans.

With consolidation, you will only have a single monthly payment to make. This can simplify your debt payment and it may also help you save a significant amount of money in terms of interest payouts. Here are some actionable insights for credit card debt consolidation for the you to consider.

  1. Check your credit scores

The first thing you need to do while starting to feel the pressure of multiple debts is check your credit reports for the status. If you find any error in it, immediately dispute it as it will further disqualify you from getting the advantage of debt consolidation. You can avail your free annual credit report from any of the credit reporting agencies such as:

  • TransUnion
  • Equifax
  • Experian

Once you know where you stand as per your credit report, you can better decide what sort of a debt consolidation plan may work the best for you.

  1. Know your available options

There are many smart and safe ways to do debt settlement of credit card bills. So, it is essential to do research before deciding which is the best one for you. Some of the strategies may be much more affordable than others. However, your credit card debt consolidation options may be limited based on your credit scores.

  1. Do smart math

Debt consolidation may surely save some money, but nothing comes for free. Credit cards may have some additional charges like balance transfer fee. So, at the first point, you need to ensure that these charges don’t outweigh the benefits you get with a lower interest at your consolidation loan. So, get all these figures in black & white and do smart calculations to identify its worth.

  1. Keep an eye on your credit scores

Consolidating credit card debts can affect your credit rating in various ways based on the strategy you adopt. If you have consolidated multiple debts in to one card, you may have to avoid maxing out the limit of that card, which will impair your credit utilization rate. Keep a close eye on your credit scores while repaying the consolidation loan too. Making timely repayment will surely reflect well on your scores.

  1. Make a solid plan and stick to it

Consolidating debts is just the beginning of the consolidation process. Further, you need to stick to a well-thought plan in order to improve your overall financial situation. Throughout the process of consolidation, you should keep a tab on how your credit card consolidation plan affects your credit score. You can do that by accessing your free annual credit reports.

Most of the consolidation lenders also offer free financial consulting through which you will be able to devise a better personal financial management plan to steadily recover from the debt trap.

Author bio: George Walter Jr. is a well-known author of many economic research papers. He also used to publish user tips on various blogs and websites discussing about debt settlement and consolidation etc.

 

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Born at an early age, Jimmy Rustling has found solace and comfort knowing that his humble actions have made this multiverse a better place for every man, woman and child ever known to exist. Dr. Jimmy Rustling has won many awards for excellence in writing including fourteen Peabody awards and a handful of Pulitzer Prizes. When Jimmies are not being Rustled the kind Dr. enjoys being an amazing husband to his beautiful, soulmate; Anastasia, a Russian mail order bride of almost 2 months. Dr. Rustling also spends 12-15 hours each day teaching their adopted 8-year-old Syrian refugee daughter how to read and write.

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