Simple Trick to Pay Off Your Credit Card Debt Faster & With a Better APR
Even if you're not juggling credit card debt at the moment, you've certainly heard about “debt consolidation” at some point. You've heard of it, but are you familiar with what it is or how it works? If not, don't worry. We'll be glad to help you discover just how debt consolidation can free you from credit card debt, improve your credit score, and put more money back in your wallet!
Why you should consolidate your debt:
There are plenty of great reasons why so many people choose to consolidate their debt, whether they're struggling to stay afloat or just looking to simplify their credit card repayment situation. Credit cards have high interest rates! When you consolidate your debt, you can shift your credit card balances to an account with a much lower APR. Of course, this means that... You'll save money! Who wants to spend their hard-earned cash on paying down a high-interest debt? It's like throwing money down the drain! When you're paying against a lower APR, you're able to save quite a bit each month...sometimes thousands of dollars each year! Paying one bill is easier than paying several! When you're stuck paying multiple bills to different banks or credit card issuers, you're taking on more work and stress than you have to. When you consolidate your debt, you have one account to worry about. That means one bill, one payment, and less risk of fees or late charges! Fewer calls from creditors! Multiple bills and credit cards often means that you'll have to deal with tons of calls from lenders and debt collectors. You won't have to worry about that nonstop annoyance once you've consolidated your debt! Now that you understand why so many people choose to consolidate their debt, you're probably wondering how complicated the process is. Well, there's more good news: It's easier than you think! You might be surprised to learn this, but you can handle your own debt consolidation. Doing so will keep you in the driver's seat while removing risks to your credit rating and saving you money. The method is surprisingly simple: consolidate your debt with a personal loan. With a personal loan, you can pay off all of your existing debt in one swoop, leaving you with only one bill to worry about. No more multiple due dates or interest rates. Again, you won't have to worry about charge-offs and hits against your FICO score as long as you use the loan to pay everything off in full. Your credit rating will be preserved leaving you in a far better long-term position. Finally, and most importantly, you will be probably be able to get a lower interest rate on your loan versus what you're paying to the credit card issuers. Combine the lower APR with fewer fees and risks of charges (because you only have one bill now, right?) and you'll be enjoying the cheaper solution to getting out of debt. Remember that consolidating your debt is only one part of an overall debt reduction strategy...but it is a powerful one. If you're stuck paying multiple bills and you're sick of the high APRs on your credit cards, then paying them all off with a personal loan is probably a sure bet.