Consolidating your credit cards good idea

This helps eliminate mistakes that result in penalties like incorrect amount or late payments.

There are three major types of debt consolidation: Debt Management Plans, Debt Consolidation Loans and Debt Settlement.

The cliche about rearranging the deck chairs on the Titanic came to mind when I read your question.

Debt consolidation won't address the real problems that may sink your credit rating!

And because the rates are so high, consumers are not able to pay the loans back, so they take out more loans, and the balance just continues to build." 3. A 401(k) can be a tempting source of quick funds when you're short on cash.

After all, the money is already yours and with luck, you can pay it back quickly.

These are not quick fixes, but rather long-term financial strategies to help you get out of debt.

When done correctly, debt consolidation can: There are several ways to consolidate debt, depending on how much you owe.

Someone with excellent credit and a low debt-to-income ratio may be offered interest rates as low as those seen on secured loans.

The best way to consolidate credit card debt under ,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.

You also could look at a personal loan to pay off your balances.

What lenders are looking for: Any reputable lender will check your credit history and ask about your income and debt when deciding whether to offer you a loan.

Your credit history directly affects the interest rate you are offered, and so does your ability to repay the loan.

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