Consolidating credit card debt good idea

Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.

There is no one true “best” way to eliminate credit card debt, as doing so all depends on your individual situation.

You can focus on getting each card paid off individually, transfer your balances to one card, ask for a lower interest rate or even get a loan to pay off the balances.

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Whichever one has the highest annual percentage rate (APR), that’s the one that gets the focus of being paid off first (while still making minimum payments on your other cards, of course).

Once that card is entirely paid off, you move on to the one that has the next highest APR, and so on.

There are three major types of debt consolidation: Debt Management Plans, Debt Consolidation Loans and Debt Settlement.

These are not quick fixes, but rather long-term financial strategies to help you get out of debt.

Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.

Options to consolidate your credit card and other debts include a balance transfer credit card, an unsecured personal loan, a home equity loan or line of credit and a 401(k) loan.From a monetary sense, this strategy may make the most sense, as it will cut out you spending so much on interest.To implement this, you simply boost your payments on that card up to whatever you can afford and stick with it.Tackling Your Debt Wisely Budgeting Your Money Like a Pro Community Q&A It may seem easier to just ignore it, but your unmanaged credit card debt will haunt every step you take.It may sound like a daunting task, but you can pay off your debt with order and dignity!This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.

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