Credit cards are undeniably the best tool for getting rewards. Additionally, they also provide an emergency source of cash. They can also help lay the foundation of credit development to make way for future purchases. Recent research shows that the average American adult contains almost four credit cards. Considering the most difficult economic times you have been facing lately, it makes sense that several Americans are now struggling to pay off credit card debt. Fortunately, you now have options if you are deep in credit card debt. One of those options is Debt Consolidation from the best debt relief company, which is the best credit card debt relief option for you. It can help you pay off numerous credit card balances faster and with minimum extra fees. This article will give you complete information about debt consolidation, which is the right option for credit card debt relief.
What is Credit Card Consolidation?
It is usually a strategy in which several credit card payments merge into one. It will make tracking easier since there is just a single monthly payment and due date to be concerned with. These credit card debt relief consolidation strategies often come with a lower APR. It will save on the total interest paid. It allows you to pay off the debt faster. Credit card consolidation loans happen when you can take a new loan to pay off your existing debts.
How does Credit Card Debt Consolidation Work?
The credit card consolidation process is very straightforward. Working with a loan officer, you collect all the debts you want to merge into a single payment. From there, a loan is set in place for you to make your monthly payment to one location. It will make it easier to remember your due date, hopefully getting a lower APR to pay overall. For example, you have 3 credit cards with balances of $1000 each. After paying off your three $1000 balance credit cards, you have just one loan for $3000. The ways to get credit card debt relief through consolidation are as follows:
Credit Card Balance Transfer:
This option is useful for those having an excellent credit scores. Balance transfer credit cards provide 0% APR on balance transfers when you open an account. However, an excellent credit score means you are eligible for the longest 0% APR introductory period possible. In addition, some credit cards have promotions that run up to 18 or 24 months.
Low-Interest Personal Loan:
It is one of the most common and best ways to consolidate your credit card debts. In this option, you need to reach out to your local bank or credit union and get a debt consolidation loan. The best thing about this type of consolidation is that they often have flexible terms and develop a consistent month-to-month payment due, which assists in budgeting. A personal debt consolidation loan is a viable solution for those having a good credit score. The higher your score, the lower the interest rate you can qualify for on a loan. However, 5% APR is ideal, but anything below 10% APR is enough to provide the credit card debt relief you need.
Does Debt Consolidation Close Credit Cards?
Many people have great concern that does debt consolidation close their credit cards. The short answer is no. Remember, once you consolidate your balances, your original credit card balances should all revert to 0. So, contacting every credit card company is always great to confirm that your balance is 0. Apart from this, your credit card will only get closed if you take action to close it yourself. In addition, if your credit card company decides to close your account for other reasons.
Massive credit card debt can affect your financial health. Balances can increase rapidly, and they can negatively impact your credit score. In addition, it also affects your ability to qualify for new credit cards, loans, and lower rates in the future. The best credit card debt relief option, like debt consolidation, can help you. It will not only help you to pay off all your credit card debts but also lower or have no impact on your credit card score.