Definition: What is Credit Card Consolidation?
If you’ve run up a lot of debt on a lot of different cards, then credit card consolidation might be for you.
Credit card consolidation is a process where you obtain a loan that will essentially consolidate all of your smaller credit card debts into one large debt.
This is usually done when someone is suffering as a result of their debt, and either suffering from damaged credit or an inability to make payments on their cards.
Definition: What is Credit Card Consolidation?
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If you’ve run up a lot of debt on a lot of different cards, then credit card consolidation might be for you.
Credit card consolidation is a process where you obtain a loan that will essentially consolidate all of your smaller credit card debts into one large debt.
This is usually done when someone is suffering as a result of their debt, and either suffering from damaged credit or an inability to make payments on their cards.
Credit card consolidation is sometimes offered as a product of credit counseling agencies.
People with high debt loads on a number of credit cards will not have a good credit rating, and will have difficulty qualifying for things like a mortgage.
Addition Definition and Benefits of Credit Card Consolidation
When you combine the debts into a single consolidated loan, it improves your credit situation almost immediately.
As you pay down the loan, your credit score will continue to improve.
Credit card consolidation is also a huge money saver.
With some credit cards charging around 20% interest, you can spend a lifetime paying them off if you only make your minimum payments.
A consolidation loan might be available at a much lower interest rate, and with effort you can pay off your total debt much more quickly.
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