Consolidate Credit Card Debts

Written by Kevin Tavolaro
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If your credit card debts have become unmanageable and you find yourself making monthly payments that only cover the interest, you're probably ready to try consolidating your debts. Consolidation involves combining your outstanding balances, in order to devise a more efficient payment plan. There are several different types of debt consolidation alternatives available, depending on how much money you owe, as well as how much you will be able to regularly pay towards the debts.

How to Consolidate Credit Card Debts

If high interest rates are keeping you from getting caught up with your payments, you should consider a balance transfer. If you haven't yet been delinquent in your minimum payments, you can apply for an additional credit card, to which you will then transfer all of your debs. In an effort to gain new customers, many credit card companies offer a low introductory APR for new cardholders.

This means that, if you're approved for a new card, you will have a period (usually about six months) where you won't be subject to the regular interest rate. In some cases, the introductory APR is as low as zero percent, which can significantly reduce your overall debt. By transferring an existing balance to a zero percent APR card, you can save hundreds of dollars that would have otherwise gone towards interest, as long as you can completely clear your balance within the introductory period.

You can also seek the assistance of a third party organization in regaining control over your debts. Credit card consolidation services help you combine all of your outstanding balances into a single sum. They then help you determine how long it will realistically take for you to pay off the total amount owed. Finally, they help you devise a payment plan. Because the debts have been consolidated under a single interest rate, it should be easier for you to clear the balance by paying regular installments against the total.

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