Start Consolodating debt

Consolodating debt

The real questions to be answered are: Why do you have such a large amount of credit card debt?

For the record, and for those who don’t know the difference, a credit rating and a credit score are 2 different things.

Without taking these positive money-management steps, consolidating your debt will not help your credit rating in the long run but could create the potential for disaster instead.

In addition, your spending plan will help you determine if you can afford to consolidate your credit card debt.

A credit rating is assigned by a person who looks at issues beyond your credit report before deciding how creditworthy you are.

These issues include income, job stability, your ability to use dormant credit lines and more.

And while a consolidation loan for credit cards can be a good option when you have a lot of bills to pay off, there are plenty of alternatives to consider. Review your current financial picture and goals with a financial advisor or specialist certified credit counselor to determine the best plan for your needs.

Before you do, let's take a look at the pros and cons of each option.

Should you need to cut back on expenses in other areas to afford the consolidation loan payment, be sure you’re willing to make the needed sacrifices for the entire 5-year repayment period, and be doubly sure you don’t use those cards unless you can pay them off in full each month!