Options to consolidate your credit card and other debts include a balance transfer credit card, an unsecured personal loan, a home equity loan or line of credit and a 401(k) loan.The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.Instead of balancing their budget so they can live without any reliance on credit, debtors who don’t use consolidation correctly continue to use their credit cards in order to get by every month.As a result, they continue adding to their debt load instead of reducing it.A bad-credit debt consolidation loan is one way to handle debts that distress you, but a consolidation loan is not your only choice.My answer discusses bad-credit debt consolidation loans and your non-loan options.Debt consolidation is a strategy to roll multiple old debts into a single new one.
While your bank or credit union may offer various personal loans for debt consolidation, it’s possible you won’t qualify if you have blemished credit.
The ten points below can help you use a credit consolidation program successfully while avoiding common pitfalls that often catch people off guard.
If you’re thinking of consolidating credit card debt and you need an expert opinion to make sure it’s the right choice for you, we can help.
By combining your existing bills into one new, monthly payment, you’ll be able to pay off most of your debts and work on becoming debt-free for the long term.
But if you’re one of the many consumers with bad credit, you may be wondering whether you even qualify for a consolidation loan.