Consolidating my credit cards
If you find your debt load and monthly payments overwhelming, you may want to consider consolidating your credit card debt.The Federal Trade Commission's article, "Knee Deep in Debt," recommends consolidating debt as one of many possible strategies, including budgeting, debt negotiation or credit card counseling.This calculator is based on making the minimum repayment amount at a 18% interest rate.Minimum repayments are calculated as a percentage of the closing balance, typically 2 or 2.5%, or a set dollar amount, usually around , whichever is greater.View the Total Cost of Borrowing Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you.
Study all interest rates and fees associated with your current debt so that you can target the credit cards with the highest rates first.When people mention debt consolidation, they are usually referring to one of two different methods.The first is the kind you describe, where you apply for a personal loan, preferably one with a relatively low interest rate, and then use the money from that loan to pay off all your credit card balances at once.Your repayment will never be more than your closing balance.People often ask us about debt consolidation and whether consolidating their debts will affect their credit.
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By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.