Consolidate Credit Card Debt

READER QUESTION

I pay very high interest rate(APR) and just found that we can consolidate our card debt, please help us to find a good company

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

Thanks for your question, Jonathan. There are several types of consolidation loans for consumers in your position, but the one that will best suit your needs depends primarily on whether or not you own a home and your credit history.

If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off your credit card debt; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully - the Bills.com Savings Center is a great resource to help you find a lender for this type of loan.

Bills.com makes it easy to compare different loan types. Please visit the loan page and find a debt consolidation loan that meets your needs at:

/mortage/refinance/

If you do not own a home or other property to offer as collateral for a secured debt consolidation loan, there are several other options you should consider. You could also look into an unsecured personal loan to consolidate your debts - check out the loans section of the Bills.com Savings Center for unsecured debt consolidation loans that may improve your situation. However, your ability to qualify for either a credit card or a personal loan that will actually save you money greatly depends on your credit score. If your credit history is less than perfect, you may have difficulty finding a lender willing to extend you credit, and if you do find a loan, you should expect to pay a premium in interest.

To read more about debt consolidation loans, I invite you to visit the Bills.com Debt Consolidation Loan Resources page at /debt-consolidation-loan/

Again, start your search for lenders who can consolidate your debts by entering your contact information in the Bills.com Savings Center at the top of the page.

I hope this information helps you Find. Learn. Save.

Best,

Bill

www.Bills.com

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