Define consolidating credit card debt

Others might consider transferring balances to one credit card or getting a consolidation loan.

However, consolidating balances to one credit card or using a loan can be risky because, if you need to borrow additional money, it may be tempting to use one of the accounts with a zero balance.

In such a situation, you can save eight percent per year, or 0, by moving a ,000 balance—just based on the regular interest rate.Instead, your unsecured debt payments are consolidated into one monthly payment to the agency, which in turn pays your creditors each month.Your credit counselor works with your creditors to try to reduce your interest rates and eliminate extra fees, like late charges or over-limit charges.Our outstanding commitment to customer service shows with our A rating and accreditation through the Better Business Bureau.Credit card refinancing and debt consolidation are two big phrases that have similar meanings. One will get you a lower interest rate and the other will give you a set time to pay off your credit cards.

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