Credit Consolidation Options without a Loan

READER QUESTION

I want to consolidate all my credit cards but I do not want to put my house in

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

Several possible solutions to your problem come to mind, but the best one for your situation will depend on several factors.

First off, if you want a free consultation with one of Bill's approved debt help partners.

Now some things to consider as you evaluate your options:

You may be able to transfer your existing cards to another credit card with a lower APR, or one with a 0% introductory rate. A balance transfer could help you by consolidating all of your credit cards into a single account with a lower interest rate and lower monthly payment. You may want to explore credit cards that meet your needs. A card such as the Discover Platinum, with a 0% APR for 12 months, and 10.99% thereafter, is certainly a good deal as far as credit cards go. 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.

A possible loan resource you may want to explore is peer-to-peer lending. A private lender may be more willing extend you a loan than a traditional bank. I know of three companies facilitating peer-to-peer loans in the US today: Prosper, Lending Club, and Virgin Money US. (Readers: If you know of others please comment below.)

If you are unable to find a consolidation loan that fits your needs, you may want to look into alternatives such as debt settlement or credit counseling. Bills.com offers a wealth of information regarding the various debt help options available to consumers - visit /debthelp/

 

I hope we can help you find a solution to your debt troubles.

Good luck,

Bill

www.bills.com

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