How Can You Consolidate And Pay Off Your Multiple Credit Card Bills?

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Consolidate And Pay Off Your Multiple Credit Card Bills

Are you finding it difficult to manage your bills and searching for a suitable way to get out of credit card debt?

In such a situation, credit card bill/debt consolidation can help you to pay off your dues with the help of a single payment every month.

3 Ways to Consolidate and Repay Your Credit Card Bills

You can consolidate and pay off your multiple credit card debts/bills by following any of the 3 methods discussed below.

1. With the help of balance transfer method

Have you reached the maximum credit limit on your lowest interest card? If not, then transfer you high interest rate balances to this card and make monthly payments on a reduced rate of interest.

However, you may need to take your creditors approval for opting balance transfer method to pay off dues.

You can also apply for a card with zero or low interest rate for the purpose.

While doing so, try to repay your bills within the introductory low or zero interest rate period as companies usually give such offers only for a limited period of time.

2. By enrolling in a bill consolidation program

You can enroll in a bill consolidation program to repay your credit card debts under professional guidance.

In such a program, the consolidation company negotiates with your creditors to reduce the interest rates on your loans. With your creditors approval, the company also decides upon single monthly payment that you can afford.

You need to pay the agreed upon amount to the company, which on your behalf, distributes it amongst your creditors. Thus, a single monthly payment helps to pay off your multiple dues within a specific time period.

3. By taking out a consolidation loan

A loan consolidation (similar to a personal loan) can also help you to repay multiple credit card bills.

You can take out such a loan from a financial institution that offers the lowest rate of interest.

However, before approaching an organization for obtaining the loan, calculate how much you need to take out in order to pay off what you owe to your creditors.

By paying off your existing credit card debt, you actually combine and replace your bills by a single loan, which you can repay with the help of a single monthly payment.

Apart from the options mentioned above, you can also consolidate and pay off your credit card bills/debts by taking out a home equity loan.

However, you need to have enough home equity that you can pledge in order to borrow the required amount.

While taking out such a loan, assess your financial condition and plan a budget to repay the home equity loan within the stipulated time.

Otherwise, you may have to lose the property if you are not able to make necessary payments and repay the loan within the designated time period.

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