If you have credit card debts like I did at some point don’t feel hopeless there are legit ways to tackle this type of debt. One of them is debt consolidation.

I started taking credit cards out hoping to get my credit score high and be able to have a strong line of credit unfortunately everything started going down after I started abusing them because of the high credit line I was getting base of my credit.

With multiple credit cards and a debt of $10000 dollars accumulated, I got to the point where I wasn’t able to afford and keep track of all these multiple payments. So I decided to look around for my options and create a payment plan that will help me focus on only one single payment.

Looking around the internet and doing my homework in investigating the company I was going to work with, I decided to go with Cura Debt to help me with consolidating all my credit card debts they were helpful provided all information I needed thru their free consultation.

CuraDebt

How does credit card debt consolidation work?

When you consolidate your credit card debt is basically taking out a loan to pay off your credit card debt leaving you with one single payment. This could be a good idea because if you have multiple credit cards now you will be looking at just one payment per month until debt is paid off.

Does debt consolidation hurt my credit ?

It did not hurt my credit in my situation but it will depend on your situation everyone is different. For some borrowers, debt consolidation is the way to go to address ballooning credit card balance problems.

Here are some credit card debt consolidation benefits:

1.You might be able to get a lower interest rate

  • If your credit is good, you might qualify for a lower interest rate on a personal loan than what you are paying on your credit cards. THe lower rate can help you save some money in the long run and help you pay your debt faster. To get the best deal, shop around some online lenders like SoFi, do a soft credit pull when they quote you a rate, so your credit score won’t be impacted until you actually apply for the loan.
  • 2. Make your debt simpler to track

    • If you have multiple cards, it is tough sometimes to remember to pay each creditor on time every month. When you consolidate your debt, all you got to worry about is paying one loan. If you having hard time keeping track on all your multiple payments and due dates, consolidating your debt could help ease the process.

    3. It offers a structure repayment plan

    • One thing credit cards don’t do is set you up with a firm end date for when your debt will be repaid. If you only pay the minimum amount required every month, you could stay mired in debt for a long time. Even worse, if you continue to use the card, the amount you owe could vary with each bill. Personal loans, however, come with a predetermined repayment term and amount. “They can give a consumer a defined repayment plan so they know exactly when they will be debt-free,” said Tayne

    4. It might help you increase your credit score

  • In some cases, consolidating your debt might improve your credit score. Once you pay off your credit cards you’ll have a lower credit utilization ratio, which is an important factor in your credit score. The lower your credit utilization, the better it is for your score. You also will add another type of credit to your credit history when you take out a personal loan, a factor that possibly could raise your credit score if you don’t have other installment loans.
  • Conclusion

    At the end of the day, the main goal is to get out of debt, after exploring my options consolidating my credit card debt was the way to go for me and it might be your best bet. So choose a method that you know you can commit to and afford.

    Interested in Refinancing Student Loans?

    Here are the top 5 lenders to refinance Student Loans in 2018!
    Logo

    Variable Rate
    2.58% - 7.07%

    Fixed Rates
    3.25% - 7.25%

    Terms
    5, 7, 10, 15, 20 years

    Eligible Loan Balances
    Minimum: $5,000
    Maximum: None

    Logo

    Variable Rates
    2.69% - 6.01%

    Fixed Rates
    3.09% - 6.69%

    Terms
    5, 7, 10, 15, 20 years

    Eligible Loan Balances
    Minimum: $15,000
    Maximum: No Max

    Logo

    Variable Rates
    3.92% - 11.52%

    Fixed Rates
    6.07% - 12.66%

    Terms
    8, 10, 12, 15 years

    Eligible Loan Balances
    Minimum: $2,000
    Maximum: Cost of Attendance

    Common Bond

    Variable Rates
    2.55% - 7.10%

    Fixed Rates
    3.14% - 7.25%

    Terms
    5, 7, 10, 15, 20 years

    Eligible Loan Balances
    Minimum: $5,000
    Maximum: $500,000

    LendKey

    Variable Rates
    2.56% - 7.94%

    Fixed Rates
    3.15% - 8.12%

    Terms
    5, 7, 10, 15, 20 years

    Eligible Loan Balances
    Minimum: $7,500
    Maximum: $300,000