Consolidate Credit Card Debt in Two Ways
What does it take to consolidate your credit card debt? A humongous loan and pristine credit? Many people see this as the only way to deal with many debts at one time. However, there are other ways to consolidate credit card debt. Here we will discuss a few ways to consolidate credit card debt that might be more accessible to you.
Consolidate Credit Card Debt with Balance Transfers
In some instances, you can execute a balance transfer with your credit card provider. The good thing about having credit cards is the relationship you build with your credit provider. While a younger relationship might not yield a favorable response, a cardmember of a few years might in regards to a balance transfer. A balance transfer can help to move debt from one (or multiple) credit card(s), many times with a lower interest rate. This can help you save more money in the long run. Paying less interest while you consolidate credit card debt can be big help.
Consolidate Credit Card Debt with Savings Borrowing
One thing many people don’t think to do is borrow from their savings. Many banks will allow you to do this instead of paying debt off with your savings outright. This benefits both you and your bank. Your bank will help you borrow money in the form of credit while the actual funds stay in the bank. Once you borrow the money, you can then use it to consolidate credit card debt easily. All you would have to do then is pay off the loan you just used. You might even feel more inclined to pay off the loan as it’s insured by your own savings.
Check your options to make sure you can consolidate credit card debt before you try, as some consolidation option might lead to lower credit scores due to hard inquiries.