The choice to consolidate your credit cards is definitely the right one to make. When beginning to investigate the process to consolidate your credit card bills, you will need to compare the different plans and options that are available to you. There are options of using your home's equity, personal loan, or even new credit card. Some credit card companies have started there own credit card consolidation programs.
There are a few different options when it comes to consolidating your credit card debt. If you are currently paying high amounts of interest, any of the options will leave you in a better position for the future. High interest credit card debt takes a huge toll on your households finances each month. The problem is, it's a vicious cycle, these high interest payments keep you broke. Being broke causes you to have use the cards more often, which in turn increases the monthly payments.
One way out of this cycle is to apply for a new credit card that allows you to transfer your balances and offers a grace period without interest. This allows you to pay off the balance while you are not incurring any interest. This type of transaction is very common. Almost all of the large credit card companies offer packages similar to this.
Another option is to apply for a debt consolidation loan. The advantage of this is you do not have to contend with a limited grace period. The interest rate on the loan should be lower and locked in for a set term of payments. This works out good if you cannot afford to pay the large monthly payments that would be required to beat the grace period deadline of a credit card transfer.
A third option is to use equity in your home for a loan. This is the best of all options. This type of loan allows your interest to be tax deductible. This allows you to save money now and continue to benefit well into the future. Not everyone will have this option available even if you do own your home. You will need to have equity built up to a sufficient level to acquire funds from a lender. Some lenders do offer loans that will allow you to borrow up to 125% of your home value. This type of loan will be considerably higher interest and monthly payments.
Any of these options can have a positive impact on your finances. The key to long term financial stability is living below your means and sticking to a budget. Having a monthly budget allows anyone to visualize and better understand were your money goes.
Lenders may seem like they don't need your business, but they do not own the money they lend. They have borrowed the money just like you are doing, and they cannot repay their loans if they do not make enough loans to make a profit. So, looking at it this way they need you just as you need them. More information and some great links can be found at. . . CONTINUE