Clear Your Credit Clutter: 7 Smart Tips for Consolidating Credit Card Debt in 2019

by Susan Paige on April 3, 2019 · 0 comments

Scissors about to cut credit card

It’s not uncommon for Americans to spend almost their entire lives trying to dig their way out of debt. From student loan debt to credit card debt, everyone seems to be carrying around at least a little debt these days.

But know this: you don’t have to live like everyone else. About 25 percent of Americans don’t have a single penny of debt to their name—and you can join them if you play your cards right.

Consolidating credit card debt is usually a great place to start. The average person has more than $5,000 worth of credit card debt right now.

If you fall into this category, debt consolidation could be a great option for you. It’ll allow you to put all your credit card debt into one pile with a lower interest rate than you have now.

Here are seven smart tips for consolidating credit card debt.

1. Begin by Cutting Up Your Credit Cards

Before you start the process of consolidating credit card debt, it’s important to make sure you’re 100 percent committed to debt consolidation.

Prove that you are by taking all the credit cards you have and cutting them up (yes, even the one you use for “emergencies”!). This will confirm your commitment to consolidation and ensure that you don’t slip right back into credit card debt again after consolidating.

2. Consider If Debt Consolidation Is Right for You

In addition to committing yourself to paying down your credit card debt, you should also consider if debt consolidation is really the right move for you to make.

Check your credit score to see where it stands. If you have a very low score, it could impact your ability to obtain a debt consolidation loan. It could also result in you taking out a loan with an interest rate that’s higher than the rates attached to your credit cards at the moment.

Debt consolidation is an excellent option for millions of Americans. But you need to make sure it’s right for you before proceeding.

3. Look for the Right Debt Consolidation Lender

If you decide consolidating credit card debt is, in fact, the right move for you to make, it’ll be time to look around for a debt consolidation lender.

There are literally dozens, if not hundreds, of lenders out there who will line up to give you a debt consolidation loan. Use this to your advantage by pitting them against one another to get the best deal.

Look for a lender that has:

  • A lot of experience in the debt consolidation space
  • Almost nothing but positive reviews from former and current customers
  • A helpful customer service department
  • Attractive loan offers
  • Easy-to-understand repayment plans

Research as many lenders as you can. It’ll help you narrow down your search so that you can find the one that’s right for you.

4. Try Applying for a Debt Consolidation Loan

Once you’ve settled on a debt consolidation lender, go through the process of applying for a loan from them. To do this, you’ll often need to provide:

  • Your full name
  • Your address
  • Your Social Security number
  • Your salary
  • Your credit history and credit score

Applying online for a debt consolidation loan is the easiest way to do it. But you can also reach out to lenders directly for help. Some even have physical locations you can visit to discuss debt consolidation loans.

5. Study the Terms of a Loan Before Accepting It

As long as you have a high enough credit score, you shouldn’t have any problem securing loan offers from the lender of your choice. But the work shouldn’t stop there!

After you receive a loan offer, study it thoroughly to make sure it’s the best loan for you. Pay close attention to the interest rate that you’ll be getting from a debt consolidation lender as well as the repayment period.

You should never accept a loan—for debt consolidation or otherwise—without doing a full evaluation of the terms attached to the loan. You’ll be asking for trouble if you do.

6. See How Much a Loan Will Actually Save You

At the end of the day, you want your debt consolidation loan to save you thousands of dollars over the life of your loan. You want to see the savings for yourself before signing off on the loan.

Grab a calculator and crunch the numbers to see how much it would cost you to pay off your credit cards on your own versus how much you’ll save by using a debt consolidation loan to do it.

You should see substantial savings by going the debt consolidation route. If you don’t, you either need to reconsider taking out a debt consolidation loan or find a better lender.

7. Prepare to Pay off Your Loan Every Month

From the second you take out a debt consolidation loan, you need to be ready to pay it back. If you miss even a single payment, it could alter the terms of your loan and make it harder to pay off your debt.

Take a look at your finances and make sure you’ll be able to swing the monthly payments that will be owed to your debt consolidation lender. This will help you avoid running into a situation in which you can’t make a payment.

It’ll also put you back on the right financial path and make your debt a whole lot more manageable than it used to be.

Start Consolidating Credit Card Debt Today

Paying down credit card debt can be a daunting task for many Americans. They don’t know how they’re going to be able to do it in a reasonable amount of time. It can get to be so bad that some people even think about filing for bankruptcy.

If you find yourself growing frustrated due to credit card debt, debt consolidation might be exactly what you’ve been praying for. By consolidating credit card debt, you can get rid of your debt once and for all.

Need more advice on eliminating credit card debt? Read our blog for additional tips on paying down your credit cards and freeing up more money every month.

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