Is consolidating your credit a good idea

These pay-down tips and strategies will help you find out how to pay off your credit card debt.Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.If you wrap it into a home equity loan, you are offering your home as collateral.If you don’t pay off the home equity loan a lien will be imposed against your home.Credit Counseling offers one of the most common and legitimate ways to get your credit card bills reduced and under control with a single consolidated monthly payment.There are benefits and drawbacks to working with a credit counseling service.

Also, consult a nonprofit credit counselor to explore alternatives before signing a contract. Options to consolidate your credit card and other debts include a balance transfer credit card, an unsecured personal loan, a home equity loan or line of credit and a 401(k) loan.This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.There are two types of debt consolidation loan: Debt consolidation loans that are secured against your home are sometimes called homeowner loans.You might be offered a secured loan if you owe a lot of money or if you have a poor credit history.WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.


Leave a Reply