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How To Consolidate Credit Card Debt

How To Consolidate Credit Card Debt
How To Consolidate Credit Card Debt

Consumer credit card debt is out of control, and there is no one-size-fits-all solution that can magically make it disappear. Getting out of debt takes effort. If you are eager to be debt-free, learn how to consolidate the debt with a personal loan from Customers Bank.

Combine Debts into a Personal Loan

When you have multiple high-interest credit card payments to make every month, why not simplify things by taking out a single personal loan from Customers Bank? Using the loan proceeds to pay off the balances on each credit card will leave you with one monthly payment and make it easier for you to improve your financial situation.

When to Consolidate Your Debt

Consider consolidating your credit card debt if you have any of the following:

  • A large amount of debt. If the debt is small and you can pay it off in a year or less, it is probably not worth the fees and the credit check associated with applying for a new loan.
  • Poor spending habits. Some debts are the result of overspending and other financially dangerous behavior. Assess your habits and develop a plan to get your finances under control or you may end up with even more debt than before.
  • Adequate cash flow. Ensure you have enough income to cover your new monthly payment before consolidating your debt. It is not a good option if you cannot cover your monthly debt service.

Advantages of Credit Card Debt Consolidation

Before you commit to a new loan, it is essential to understand the advantages of credit card debt consolidation.

    • Streamline Your Finances – By combining multiple debts into a single loan, you will reduce the number of monthly payments you need to worry about.
    • Could Lower Interest Rate – If your credit is good, you may be able to get an interest rate on your single personal loan that is substantially lower than the interest rate you have been paying on each credit card. This means you will save money over the life of the loan.
    • Can Improve Your Credit Score – Your credit score may temporarily dip when you apply for a new loan and a lender makes a hard credit inquiry. However, consolidating your debt and paying off revolving lines of credit, such as credit cards, can reduce the credit utilization rate on your credit report.
  • Enjoy Less Stress – Take control of your finances. Financial matters like debt are known to lead to stress, but they don’t have to. Consolidating your debt into manageable payments with a personal loan will significantly reduce your anxiety.

Bottom Line

Is the credit card debt you are juggling too much for you? Find out how to consolidate the debt from the experts at Customers Bank. A personal loan can be an excellent solution for debt consolidation, financing home improvements, or covering unexpected expenses. Talk to one of our experienced financial advisors to explore the best way to meet your needs.