Credit cards are useful most of the time. People who need money to buy certain items or to pay for unexpected expenses can attest to how useful credit cards are, provided that they are used responsibly. If you need to pay for your hospital bills in an instant, you can rely to these credit cards. All you have to do is to swipe and sign the voucher. However, there are instances wherein people tend to abuse the use of these plastic cards. Thus, they are in need of help to consolidate credit card bills.
What is consolidation?
Credit card consolidation involves the process of combining all your credit card outstanding balances into one account and hoping for a better and lower interest rate that will enable you to pay off your debts eventually within a given period of time. You can do this by following these steps:
- List all your outstanding debts. Carefully itemize them and include also the creditor from which you owe the money from and how much interest rates are being charged to you each month or every time you get your billing statement.
- After listing them all, look for the creditor that charges the lowest interest rates especially during late payments.
- Once you are able to determine, try to canvass the market if there are other bank account providers or creditors that charge lower compared to the lowest that you have.
- Try to settle with your creditors and ask them to allow you to transfer all your outstanding balances into a bank account that has the lowest interest charge rates so that you will be able to pay them off.
Asking for third party help
Talking to your creditors about your plans to consolidate your credit card bills can be a very stressful process. If you do not want to be bothered by all these, you can try to get credit card debt help by enlisting the help of a debt management agency. They can talk to your creditors, and even suggest ways on how you can lower down your debts and work your way towards paying them all off.
Apply for a loan
Another thing that you can do to consolidate credit card bills is to go to the bank and avail of their loan with the lowest interest rate. This will enable you to pay off your bills, and at the same time prevent them from accumulating charges from interest.