This helps eliminate mistakes that result in penalties like incorrect amount or late payments.There are three major types of debt consolidation: Debt Management Plans, Debt Consolidation Loans and Debt Settlement.
— and what the monthly payment and interest rates are on those bills. Once you have this information, make sure to compare lender’s rates, fees and length of time making payments before making a decision.
A consolidation loan should reduce your interest rate, lower your monthly payment, and give you a practical way to eliminate debt.
With bill consolidation, you make only one monthly payment — a good idea for when you have five, or maybe even 10 separate payments for credit cards, utilities, phone service, etc.
If you consolidate all bills into one, the single payment should be at a lower interest rate and reduced monthly payment.
You could get a home equity line of credit, a home equity loan or a second mortgage on your home, or refinance your existing mortgage.
Other options include borrowing against a whole life insurance policy and borrowing against you retirement savings.
Be aware, however, that balance transfer cards often charge a transfer fee (usually 3%), and some even have annual fees.
Another DIY way to consolidate your credit card debt would be to stop using all your cards and pay using cash instead.
The non-profit agency can help you get a lower interest rate from creditors and reduce or waive late fees to help make your monthly payment affordable.
You send one payment to the agency running the DMP and they split it among all your creditors.
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.