Does consolidating debt hurt your credit
The best way to consolidate credit card debt under ,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.You also could look at a personal loan to pay off your balances.
First, it makes all your unsecured debt secured and attached to your house which isn't really a great situation but it is usually a cheaper bill.
Debt consolidation is one of the primary options available to indebted consumers who are looking to ease their path to zero balance as well as save money and protect their credit standing in the process.
Unlike other alternatives – such as debt management, debt settlement and even bankruptcy – debt consolidation, when done right, won’t damage your credit standing in any significant manner. You can check out our Debt Consolidation Overview if you don’t know exactly how it works, but the basic theory behind debt consolidation is that you can use a new loan or line of credit to pay off existing debt obligations in order to garner a lower overall interest rate and a more manageable monthly payment.
You can apply for many of these debt consolidation options online, or even check with your local bank or credit union.
Shop around before finalizing which consolidation loan you want to use, as the goal is to find a loan that offers a lower interest rate than you’re currently paying.