With so many ways to consolidate, there’s bound to be a solution for your unique situation. Debt consolidation is the process of combining your debts into one loan with a lower interest rate.
Instead of having multiple debt payments each month, you’ll only have one.
Usually the credit limits on these cards are low, which you think is a good thing—it will keep you on track. A fixed payment schedule helps you pay off your debt more quickly, putting you back on the road of financial health.
The biggest problem with credit card debt is the high interest rates.
If you are juggling multiple cards, and making just the minimum payment on each one, the balance owed does not decrease very much.
Using a debt calculator, you can see for yourself how long it will take you to pay off your debt this way.
The following four steps will walk you through calculating how much debt you have, choosing the debt consolidation loan, setting a timeline to be debt free and teaching you how to control your spending.
The key element to getting out of debt is to understand debt management (aka having a plan).
Carpe Match helps you accomplish this in less than 60 seconds, by using our new technology platform to match you with the best loan for your specific financial profile.
The potential underwriting risk that you present to a new lender is measured in conjunction with your credit score and will now have to incorporate that you have the chance to begin adding to your credit card balances again.
And the fact that many people do just that is why the action will temporarily cut your rating.
Debt consolidation is a great way to get out of debt and more often than not it can help save you from financial ruin. And how do I go about consolidating my debt so that it won’t negatively affect my credit rating?
While getting out of debt can be life changing, you need to consider how a debt consolidation loan will affect your credit rating. We’ll go over all of these questions below so that you can be as equipped as possible to finally tackle your debts.