We Know: All About Credit Card Debt Consolidation What Is Credit Card Debt Consolidation? Credit card debt consolidation involves taking out a loan, usually secured by your home or property, that will pay off all your credit card debt. When you have more favorable payment rates and a lower overall payment, this is a good deal. Where Do I Find A Credit Card Debt Consolidator? There are hundreds of credit card debt consolidators online. If you have a better-than-terrible credit rating and good equity in your home, some banks will also do a debt consolidation by allowing you to take out a home equity line that you can use yourself to pay off all your credit card debt. When you decide to look for a credit card debt consolidator, be sure to shop around. You can usually find a wide variety of interest rates, and many will be more favorable. Should I Consolidate My Credit Card Debt? If you answer the following questions "yes," then you should at least think about it; if you answer several positively, you almost certainly should. Do you owe more than you can pay each month? Are you missing a lot of credit card payments? Is your credit card interest rate very high? Do you think you can get more favorable rates somewhere else? Have you been using high-interest cards and think that your credit rating is good enough to deserve lower-interest payments? What Options Do I Have Besides Debt Consolidation? Credit card debt consolidation is not the only solution if you're having trouble. A few others follow. Do nothing. Unsecured debt can only be collected from those who have something to collect from. If you have no job and no real property, it isn't worth a creditor suing you over debt, and if they let it go, it falls off your credit report seven years after they write it off. Put yourself on a budget. You usually get in trouble by spending more than you earn. The simple solution is to put yourself on a strict budget and pay down your debt. Negotiate. Many creditors prefer to get something than nothing, and will reduce your payments or your interest in order to prevent you from filing bankruptcy. It is possible you can do this as well as consolidating your debts. As a last resort, file bankruptcy. This wipes out all your debt, but may cost you more than consolidating would. Think carefully before you take this step.
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