Credit Card Debt Consolidation

Should I consolidate my credit cards, or just go bankrupt?

Debt consolidation has become an extremely popular alternative for people who want to avoid filing for bankruptcy. The most common form of debt consolidation loan is a credit card debt consolidation loan. These types of loans are generally acquired through a bank or finance company.

If you have an excessive amount of debt on your credit cards, and are paying a significant amount of interest on it, a credit card debt consolidation loan may be the perfect option for you.

To get started, you should first begin by outlining your income and expenses to figure out how much you can afford to repay each month. A budget will help you visualize how much extra money you’ll have each month, so that you won’t end up agreeing to a payment that is unfeasible.

The biggest advantage of getting a credit card debt consolidation loan is reduced interest. In a debt consolidation loan all debts are combined into one, providing only one monthly payment, and therefore lower interest rates.

As a debtor, you probably want debt relief as soon as possible, and reduced interest rates will help you achieve that. Paying each credit card debt individually could become tedious, and would likely take a lengthy amount of time. One payment will speed up the entire process, and could get you back on your feet before you know it.

Once your budget is prepared and you know what you can afford to pay each month, apply for your debt consolidation loan to repay your credit card debts. If credit card debt consolidation is not the option that can work for you, and you have more credit card debt than you can handle, you should, in that case, consider filing aconsumer proposal or personal bankruptcy.

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