5 Tips For Consolidating Credit Card Debt in 2018
The New Year is upon us, which means now is the perfect time to turn over a new leaf and pursue the type of financial responsibility and accountability you have always wanted.
Unfortunately, it is all too easy to rack up credit card debt today, with thousands of companies sending you new cards with undeniable benefits on a monthly basis. After just a few months of unaccounted spending, you can consolidate a level of debt that is seriously overwhelming for your bank account.
If this is something you wrestle with, know that you can pursue debt consolidation in 2018. Here are 5 tips for consolidating debt during the year ahead:
1. Credit Reports
Before you can really familiarize yourself with your credit card debt, you need to know what you’re working with. That starts with credit reports. An error on any of your reports could stop you from getting the debt consolidation help you really need. Additionally, it’s possible that you will spot errors. If you do, it’s up to you to dispute it – these agencies don’t double check for you. Once you have the finalized information you need, you’ll be able to decide which strategy for debt repair works best for you.
You always have options, even with debt. You have: a consolidation credit card, a debt consolidation loan, or a debt management plan staring you right in the face. The first option enables you to transfer your balance to a new credit card with a lower interest rate. The second involves obtaining a personal loan that charges simple interest as compared with credit cards with interest rates that are variable. And the third involves a credit-counseling agency that will take responsibility for paying your lenders.
3. Number Time
Before you pick one of these options, you have to do the math. Credit card debt consolidation isn’t always free. If you choose to do a balance transfer, the fee could be close to $300. Debt consolidation loans aren’t free either, and it’s definitely important to consider what that means for moving forward.
4. Credit Score
Unfortunately, when you check your credit score today, it can lower the score. Debt consolidation specifically, like consolidating multiple credit card balances, could damage your credit utilization ratio – which makes up 30% of your credit score. Debt management can affect it, too, based on this ratio.
Whichever option you choose, it’s important to commit to your decision in 2018. If you really want to consolidate your debt and become debt free this year, you have to stick with your plan. It’s not going to come to fruition overnight. However, you will see changes and feel better about your overall situation in just a few months time.
Consolidate in 2018
There’s never a better time to consider debt repair than with the start of a brand new, fresh year, waiting for the taking.
Consider the options available to you when consolidating your credit card debt in 2018.