Is consolidating credit card debt good
Before you start to consolidate your debt, take these three preliminary steps to ensure that you understand your financial situation: Consolidate Your Debt to Meet Your Goals A smart next step is for you to define your goals.You need a clear understanding of what you want to achieve and how it will benefit you to make the right debt consolidation choice.
Only by weighing the pros and cons of each solution, can you know the best option for your situation.
While this tactic doesn’t really consolidate your debt, or bills, it is an effective way of paying off your debt in a fast and orderly manner.
Use either the avalanche method (pay off the highest interest rates first) or the snowball method (pay off the lowest balances first).
It will entail making a firm commitment to a fixed monthly payment, so make sure that you can afford the payments.
Credit Counseling and Debt Management Plan (DMP): If you can make minimum payments and commit to a fixed payment then a DMP program can help by reducing your interest rates on your credit cards.
Instead of making payment directly to your creditor, the DMP company will collect your money and pay off the creditors at a negotiated rate.