Should You Consider Consolidating
信用卡债务?
Juggling multiple credit card payments each month can be stressful, especially if you have big balances on high-interest cards. So is credit card debt consolidation the solution?
The answer will depend on the nature of your current debt and whether you have a solid plan to stay out of debt. Our checklist is here to help you decide if it’s the right time to consolidate your credit card debt!
How 债务合并 Works
债务合并 is when you combine multiple debts into one account so you have fewer monthly payments and can hopefully save on interest.
The most common ways to consolidate debt are:
- 一个低利率 债务合并贷款 specifically designed to help you get on top of your bills with low rates, a range of affordable terms, and no loan origination fees
- 一个低利率 个人贷款 can be used for just about any purpose, including debt consolidation
- A credit card with a lower Annual Percentage Rate (APR) than what you’re paying now
对于这两个选项, you use the new credit source to pay off all or some of your existing credit card debt. Then you start making payments on your new loan or credit card.
Considering Credit Card 债务合并 Checklist
Now that you understand debt consolidation, let’s find out if it’s right for you!
- You’re Struggling to Make Your Payments
If you feel like you’re drowning in credit card debt – and are behind on payments or in danger of missing payments – then it might be time to think about debt consolidation.
You want to take steps to get on top of your finances before you fall behind. A 债务合并贷款 or balance transfer card could give you a single payment (or fewer payments) so you can manage your finances more easily – and sleep better at night.
Keep in mind that missed payments can negatively impact your credit score, which may make it harder to secure a new source of credit to consolidate your debt. Lower credit scores also mean higher interest rates.
- You Know You’re Paying Too Much Interest
Maybe you’re better informed now about what credit card rates are available from different lenders, or maybe your credit score has improved since you applied for your cards so you can now qualify for a better rate.
If you have multiple credit cards with high APR, chances are you’ll pay less total interest per month through a 债务合并贷款 or a new credit card with a more competitive rate.
- Your Credit Is in Good Shape
You probably know that your credit score helps determine the rates you get. The better your credit, the lower your rates! So if your credit score is good, you’ll likely qualify for a great rate on a 债务合并贷款 or a new credit card to transfer your debts.
Credit card debt consolidation lets you pay off your old credit cards. Then if you keep those accounts open with a zero balance, you’ll suddenly have much more available credit. This can give your credit score a further boost.
另一方面, if your credit is less than perfect right now, you may not qualify for a better APR than what you have on your current credit cards.
- You Have a Plan to Stay Out of Debt
Once you’ve used your 债务合并贷款 to pay off your debts, you can free up your income for more beneficial things. But you need to come up with a budget – and stick to it – so you don’t quickly revert to using your credit cards to cover the same expenses as before.
To avoid falling into further debt, you should avoid using your credit cards until your debt is paid off in full (or at a manageable level). It may mean you have to wait to buy things that you used to charge!
Find Out How to Consolidate Your 信用卡债务
Consolidating credit card debt is easy! Just take a close look at your current credit card payments, then compare the numbers to what you might get through a low-interest 债务合并贷款 or a credit card with a better rate.
If it seems like you’ll be better off after your credit card debt consolidation, you can go ahead and make the switch. Learn more about consolidating your debts today!