• Ndidi Ihim

The Best Way to Consolidate your Credit Card Loans and Repair your Credit

All financial experts will probably tell you to follow a budget if you want to have some sort of financial freedom. But what if it is a little too late for you and you have incurred debts already?

Budget is a prevention measure but not a cure. The good news is, you can save yourself from financial ruin, even if you’re trying to pay off 20 different credit cards—by consolidating your credit card loans. This is one easy step that can truly help you repair your credit.

First, gather all the credit cards that you have and list the debts that you own on each one and the APR for each. Choose the credit card with the lowest interest rate because it is the one that you are going to keep. Take note that you should only use this for emergencies and if it is your last resort when paying bills.

Keep in mind that you’ll have to pay the minimum on this card every month and that you’ll want to try to pay the complete balance when possible.

Next step should be reaching out to a debt consolidation company. Talk to them about your financial needs and the debts that you owed. They will be working alongside you on paying off your credit card debts. You will then make one larger monthly payment to this company. You can now cut your cards loose and close your accounts. You will start your journey on your way to repairing your credit.

Another way to consolidate your debt is to transfer all your debt to the credit card with extremely low-interest-rate though you have to pay some transfer fees. One option is to pay off your cards if you have a low-interest rate in this part of your financial portfolio. Make sure to pay as much as you can monthly to avoid incurring interest.

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