If you find yourself in credit card debt, and things are getting serious enough that you can no longer afford the bills coming in on a monthly basis, you need to take action and take control back from the debt you are living under. There are options to consider, including credit card consolidation. With this option, you roll all of your credit card debt into one loan so you have just one monthly payment. The interest rates, if you are careful about the loan you get, are generally lower, and the payment you make each month is low, steady, and manageable for your budget, too. But if you have never had to consolidate cards before, you may not know where you can find the help you need. Here are some options to consider:
If you have a good relationship with your bank, you might be able to get the help you need there. If the debt is relatively new, you have a proven track record on paying your mortgage or another loan with the bank, and you have a decent credit score, you might be able to get your credit card consolidation help with your bank. The bank is a good place to get good terms on a personal loan. However, they aren’t always going to be able to help. Often, people with credit card debt also have bad credit and banks may not be able to extend loans in those cases. If they can offer the loan, it might have high interest rates, which isn’t very helpful to you.
If you find that the bank won’t help you, or is offering terms that are not very good because your credit scores aren’t very high, you might look into other lenders. There are lenders that can possibly offer you secured or unsecured loans for your credit card consolidation process.
Secured loans use collateral and you will want to be careful in making sure you can pay the loan as agreed. If you offer home equity, a car, or something else as collateral to back the loan up and you cannot pay, you lose that item, which can cause even more trouble in your life. Unsecured loans don’t have anything on the line, backing up the loan. They might be the way to go, depending on your situation.
Credit Card Debt Settlement Companies
If your credit card debt has gotten out of hand enough that credit card consolidation isn’t going to help because you can’t pay the loan even if the cards are altogether, you might need help from a settlement company. These companies go to the credit card agencies and plead your case with the understanding that you are not able to pay. They might be able to settle your debt, basically, and get the debt down to a level that you can pay. The debt is not gone, but it is smaller than it was before the settlement.
If you really have no money to your name and you cannot pay your credit card debt, you might want to contact a lawyer who specializes in bankruptcy to help you with that process. While bankruptcy can take up to six months, it can wipe your debt clean and start you off with a clean slate. It’s not an idea situation, either, though, as it majorly damages credit and can be hard to come back from, too.
There are lots of financial professionals who can give you both advice on and options for credit card consolidation. When you have a trusted professional on your side, you can feel good about laying out your situation and trusting them to tell you what they feel is the best option for your financial future.
If you have credit card debt, the road ahead may not be easy, but there are options to consider, including credit card consolidation, which can help your future look brighter.