What Ways are Available to Consolidate Credit Card Debt?
Contributed by Melanie Vannuys
What Ways Are Available To Consolidate Credit Card Debt?
There are a few ways to consolidate credit card debt, but only you will know what's best for your particular situation. You will need to investigate all of the options and weigh the pros and cons of each. Then you can make an informed decision about what's right for you.
Here is a list of ways to consolidate your credit card debt:
1. Credit card transfers;
2. Home equity loans;
3. Retirement funds;
4. Life insurance;
5. Family and friends;
6. Credit union;
7. Consumer credit counseling agency;
8. Renegotiation
Now, let's take a look at a few of these.
Home Equity Loans As A Way To Consolidate Credit Card Debt
While home equity loans are cheap, relatively easy to obtain and a useful tool if used properly, you should think twice before putting your house on the line to pay your credit card debt.
Credit card debt is unsecured debt - meaning you didn't need any collateral before you were granted credit. A home equity loan is not unsecured debt. A home equity loan is a loan that uses the equity you've built up in your home as collateral to pay off your credit card debt. This may not be a wise move. If you can't or don't pay off the loan, now your home is in jeopardy.
The other disadvantage to a home equity loan is the no pressure repayment plan. Most of the time, lenders aren't in a hurry for you to pay back the loan. But don't take advantage of this feature. Your payments should be as large as they have been in order to get yourself out of debt.
