Millions of consumers in the US are undergoing financial crisis after the recent economic meltdown. Many of the consumers have suffered job loss and wage deduction and severely complicated their financial situation. In this case, many people managed their expenses by using their credit cards. However, they fail to pay back their owed amount at the end of the month. When they default on their payment then the accruing interest on the principal balance makes it unaffordable to pay off. If you are facing a similar problem, then enroll in a credit card consolidation program to regain control over your financial situation. Here are a few unique tips to consolidate your credit card debt:
- You are required to know that consolidation is beneficial if you have a wide range of credit card interest rate. Therefore, you are required to review your credit card in order to find the interest rate charged on the card. If the interest rate on the credit card varies, then you should start working on consolidating your multiple credit card debts. You are required to prepare a list of the amount you owe on the credit card along with the interest rate on each debt.
- Your next step should be applying for a new card that gives introductory offer or zero interest rate. Transfer the balance into the new card with introductory offer. It’ll be easier to manage a single monthly payment. Once you transfer the balance, then the monthly payment will also reduce as the interest rate will either be zero or low on the introductory offer card. Make sure you pay back the owed amount before the interest on the new card bounce once the offer expires.
- If you are unable to apply for a new card, then you can take out home equity loan. You can effortlessly take out home equity loan if you own a house. The interest rate on the home equity loan will be lower compared to the interest rate charged on the credit cards. Therefore, it will be beneficial to consolidate your high interest debt with this loan.
- You can take out loan against your retirement account in order to consolidate your high interest credit card debt. When you default on your payment, then you might get a consolidation loan on favorable terms. So taking out loan against your retirement fund will be beneficial to consolidate your high interest credit card debts. You can contact the human resource department of your office in order to find out whether you can take out loan against your retirement account.
Therefore, these are the four unique ways to consolidate your credit card debt if you are unable to take out a consolidation loan.