Ways to Consolidate Credit Card Debt Without Affecting Your Credit Report
As consumers, we need to keep our good credit, especially if we want to buy things that are beyond our immediate means like a house or a new car.
With good credit, we can buy big ticket items by making arrangements to pay the loan off in small amounts over a number of years.
One of the things that can ruin our credit is debt we owe on our charge cards.
As we fall further and further behind in our payments, this bill gets worse, threatening our credit reputation.
How, then, do we either save our credit from going bad, or, if it has already gone bad, how can we achieve good credit again? One of the ways is to get rid of our charge card debt, and one of the most efficient ways to do this is to consolidate credit card debt.
What keeps open-end credit problematic is that the debt keeps increasing because we owe not only what we have borrowed but also on the high interest the borrowing has accumulated for us.
So, for example, suppose you charge a meal at a restaurant.
You will not only pay the $20 for the meal, but also an extra $4, for a total of $24.
This extra $4 is added on to your bill because it is the interest from charging the card.
One way to get out of this vicious cycle of constantly paying more for all the things you charge is to stop using your charge card, preferring to pay by cash or check.
However, what do you do about the debt that you currently owe? The answer is to get a debt consolidation loan from a lender who offers this financial instrument.
This is a second loan that will pay off your charge card debt.
The difference is that this is a loan that has low interest.
This loan can be either secured or unsecured.
If it is secured with collateral from your car or home, the interest rate for it will be lower.
This loan can be used to either pay off a single card or multiple cards.
If you use it to pay off multiple cards, you will then only have one payment to make, the payment for the debt consolidation loan.
Naturally, consumers want to know if getting a debt consolidation loan will affect their credit report.
The answer is "no.
" Getting a debt consolidation loan does not affect your credit report.
In fact, it will help consolidate charge card debt and help you achieve good credit.
With good credit, we can buy big ticket items by making arrangements to pay the loan off in small amounts over a number of years.
One of the things that can ruin our credit is debt we owe on our charge cards.
As we fall further and further behind in our payments, this bill gets worse, threatening our credit reputation.
How, then, do we either save our credit from going bad, or, if it has already gone bad, how can we achieve good credit again? One of the ways is to get rid of our charge card debt, and one of the most efficient ways to do this is to consolidate credit card debt.
What keeps open-end credit problematic is that the debt keeps increasing because we owe not only what we have borrowed but also on the high interest the borrowing has accumulated for us.
So, for example, suppose you charge a meal at a restaurant.
You will not only pay the $20 for the meal, but also an extra $4, for a total of $24.
This extra $4 is added on to your bill because it is the interest from charging the card.
One way to get out of this vicious cycle of constantly paying more for all the things you charge is to stop using your charge card, preferring to pay by cash or check.
However, what do you do about the debt that you currently owe? The answer is to get a debt consolidation loan from a lender who offers this financial instrument.
This is a second loan that will pay off your charge card debt.
The difference is that this is a loan that has low interest.
This loan can be either secured or unsecured.
If it is secured with collateral from your car or home, the interest rate for it will be lower.
This loan can be used to either pay off a single card or multiple cards.
If you use it to pay off multiple cards, you will then only have one payment to make, the payment for the debt consolidation loan.
Naturally, consumers want to know if getting a debt consolidation loan will affect their credit report.
The answer is "no.
" Getting a debt consolidation loan does not affect your credit report.
In fact, it will help consolidate charge card debt and help you achieve good credit.
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