“If your credit card debt has gotten out of hand, the key to paying off that credit card debt as quickly as possible in this economy may be consolidating your debt, which can lower your monthly payments as well as your interest rates,” says Gary Hermann, chairman of Consolidated Credit. “Higher prices may leave little room in consumer budgets to pay off credit card debt, so people need to find a solution to lower their payments.”
The good news is that there is a fallback option designed for this purpose, known as debt consolidation. It consolidates credit card balances into one affordable payment. Under the right circumstances, it helps someone pay off their debts faster, even if they’re paying less each month.
Debt consolidation works by combining multiple debts and minimizing interest. You reduce high interest rates, so payments can be used to pay off principal debt.
“Consolidated Credit’s certified credit counselors specialize in helping people find the best way to consolidate,” Herman says, “because there can be more than one way to go. You can use a balance transfer, a debt consolidation loan, or sign up for a debt management program through a nonprofit credit counseling service. They all consolidate debts and all work in different situations.
- A balance transfer works best for a limited amount of debt spread across multiple credit cards. You need good credit to qualify for the longest 0% APR possible.
- A debt consolidation loan works for consumers with good credit and have more debt than can be paid off during a 0% APR promotional period.
- A debt management program works for people who are too indebted to qualify for a loan or balance transfer.
Consolidated Credit’s certified credit counselors can provide free debt and budget analysis to help consumers find the best way to consolidate. Call 1-800-728-3632 to get started.
About: In 29 years, Consolidated Credit has helped more than 10.2 million people overcome their debt and financial difficulties. Their mission is to support families United States end financial crises and solve money management problems through education and counselling.
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