Debt Consolidation Loans
Credit cards are a great way to help you control your finances. Occasionally, we may make poor decisions with our money. Other times the events in our life can take us beyond what we want and we are sadly left holding the bill. If you have found that to be the case for you, you may want to consider this great way to manage your credit card debt.
If you are faced with large credit card bills, a debt consolidation loan is one choice for you to consider. Many people are selecting these loans and you might want to consider using one to deal with those credit card bills.
What is the Point
Why would you want a debt consolidation loan? At first glance it may not seem obvious why you’d want to do this but there are two reasons:
First, you will save a lot of money on interest rates. In fact, some consolidation loan interest rates might be as much as half of regular credit card interest rates.
Second, you will get one bill with a fixed amount due rather than several bills with several amounts due. This will help you budget. It also makes it far less likely you will miss a payment which always reflects badly against your credit score.
How Much Do You Need
Gather together all of your credit card bills and add up the amount that you owe. Do not forget to factor in the extra charges that have been posted to your account since the last statement. Next, add to that about ten or twenty per cent, which is the “whoops, I forgot about that” factor. Then, with that total, start shopping around. There are many businesses and banks that are willing to provide loans to people with all levels of credit scores.
Once you have been approved for the consolidation loan, pay off all your credit card bills. Do not be tempted to add additional debt to those now paid off accounts. If you are worried about not being able to control yourself, hide the cards in a safe place. Do not carry them with you when and make them difficult to get to if you are at home. Make a personal rule that before buying anything online, you will wait 24 hours to decide of you really want it. So many times, we make purchases on impulse. Giving yourself time to think often makes you see you do not want the item after all.
Credit cards can be an excellent tool to help you manage your finances and buy the things you want or need. When your bills get out of hand, which happens to be even the best of us, choosing a consolidation loan as a way to consolidate those bills, help you reduce your interest rates, and set up a fixed amount of payment. Reduced interest rates will ultimately increase the amount of money you keep and a fixed amount due every month will help you plan your budget.