Anyone can end up with credit card debt, but it gets harder and harder to relieve when you have cards from multiple lenders, cards with different interest rates, and multiple types of credit card accounts. Getting a grip on your diversified debt can seem impossible, but there are more than a few ways to consolidate what you owe into a simple solution.
Take out a Personal Loan
Taking out a personal loan is a strong option to consider if you think it will take some time to pay off your credit card debt. The installment periods can last years, and you can score a fairly low interest rate without having stellar credit. However, you may have to pay upfront loan fees depending on how much debt you need to consolidate.
Transfer Your Balance
It’s a lot easier to pay off your credit card debt when it isn’t growing, which is why anyone struggling with debt should consider a balance transfer credit card. Depending on your credit, you may qualify for an introductory period with 0% interest. But, you typically have to pay for transfer fees in order to move all of your debt onto one card, and you must pay attention to what your interest fee will jump to if you aren’t able to pay off your balance within the introductory period.
Use a 401(k) Loan
If you have a 401(k) account, you can borrow from it using a 401(k) loan. You can only borrow a certain percentage of your 401(k) balance, and you will face interest on the amount you take out. However, the interest you pay on your loan will be to yourself, because your loan is coming from your own funds. The interest rate on this type of loan is also lower than the rate of a standard loan, and you don’t have to meet certain credit requirements to be eligible. But, depending on the requirements of your lender, you may face certain penalties if you leave or are let go from your job before paying off your balance.
Change Your Borrowing Habits
Living debt-free is a universal goal, and a great way to improve your debt is to look inwards. Even after you’ve managed to consolidate your debt into one account, it’s important to continue making conscious debt decisions that will improve your financial future. Some financial tips to keep in mind before, during, and after debt consolidation include:
· Don’t open multiple new credit cards at one time.
· Pay your credit card balances on time and pay the full amount due.
· Keep your credit card balances as low as possible.
Contact a Debt Counselor
You don’t have to deal with credit card debt alone. At Progressive Debt Relief, our ultimate goal is to equip you with the tools and skills to break your bad borrowing habits and create a debt-free future. Our financial experts can find the best route of debt consolidation for your situation. If you need help consolidating your credit card debt, contact us today.
