One of the most common debt situations that the everyday person finds themselves in is the unfortunate situation of credit card debt. Sometimes, you may have a few months of additional expenses that you have no choice but to put onto your credit card, and then have no way of paying off. Other times, you might experience an emergency and have no choice but to charge large amounts onto your credit card.
Either way, having credit card debt is a common situation, but the plus side is that there are many easy and accessible ways to receive help paying off your credit card debts. There are even ways to help you pay off your debts that potentially will save you money.
Obtaining credit card debt relief is a priority for many consumers in modern times. It is possible to consolidate most or all your revolving credit card debt into one new account with a lower interest rate or balance transfer offer.
A balance transfer involves moving your revolving debt from one or more credit cards to a solitary new account. Companies offer these zero-interest financing terms as incentive for your business because they also benefit from having your outstanding balances in their accounts.
Some debt consolidation loans are obtained through banks, credit unions or other private lenders. A debt consolidation loan relief program yields a similar result to credit card balance transfers. The primary difference is your new debt is an installment loan instead of a revolving credit card account. Some debt consolidation companies pay all your bills for you. In turn you make one monthly payment to the lender.
Others disburse the loan funds directly to you, either by direct deposit or a business check. Another type of debt consolidation program is a personal line of credit, which has maximum credit limits similar to revolving credit card accounts but is facilitated through your bank or other traditional lender.
It might seem counterintuitive to open a new type of debt account when the primary goal is to get out of debt entirely.
Debt consolidation is highly beneficial in various ways to consumers with the credit scores and income needed to qualify, however. Interest rates are often much lower than average APRs paid on multiple debts combined.
Making one payment instead of many is also highly convenient (and easier to remember). Qualifying for a debt consolidation program depends on your credit score, income and, if applicable, collateral. Sometimes your home or other valuable assets are used as collateral. Qualification requirements vary with each lender and state. Consult a financial lending agent for more information on how to become debt free by applying for a debt consolidation program today.