Consolidating Credit Card Bills

Once you’ve made the decision to consolidate your credit card bills, there are a few wise options to choose from. A credit card with a 0% interest rate for transferring your balances over to one card is one option; another option is securing a personal loan. With so many fees, and rising interest rates, it is wise to do some research before choosing your method of consolidating your credit card bills.

Taking out a personal loan is one common method for consolidating debt. Some providers, such as E-Loan.com, don’t even charge application fees. If your debt includes a mortgage, you will need to have an impound account established. The loan limit and interest rate will vary with lenders and may depend on your credit history. Some lenders will allow a loan up to $30,000 where others may lower the limit to only $15,000, so be sure to do some comparison shopping of lenders before applying with one. Either way, be sure to take out a loan for no more than your debt amount; this isn’t for blow-money.

A 0% interest rate card is a wise choice for transferring all your debts onto one card. With the current recession, there are only a few 0% choices, both from Discover. The Discover More card offers 0% annual percentage rate for twelve months with a 5% balance transfer fee. Discover More also has no annual fee.
The Escape card offers 0% interest rate for six months with a 3% balance transfer fee. Unfortunately, Escape does charge a $60 annual fee, along with other fees and charges.

By consolidating your debts into one, you will be saving not only by having one interest rate, but also just one account that can be charged fees. These changes will automatically begin to reduce your monthly debt. Either securing a personal loan for your debt amount or transferring all your credit card bills onto one card are good options. Neither will be an overnight solution but you will certainly increase your peace of mind. If you consistently make your payment on time, you will also quickly improve your credit rating.

Once you’ve paid off the debt, consider implementing a monthly budget to avoid accumulating future debt. There are many websites offering free budgeting tools. You can create a budget that’s customized according to your payday date and when your bills are due. Some of these websites offer monthly, weekly, and mini budget forms, financial counseling, money management workshops and more.