Tips to consolidate your credit card debt

Debt consolidation is a strategy which can be used to roll multiple debts into a single new one. If you are weighed down by the credit balances, then credit card debt consolidation might be the best thing to do. We are here to provide you with some good suggestions. Here are 3 Tips to Effectively Consolidate Credit Card Debt.

Image result for credit card

1. Take a Personal Loan: You can get a personal loan from banks, and online lenders. Most of the time whether you get a loan or not, it depends on your credit history. The main benefit of taking a personal loan and clearing the credit card debt is that personal loans usually charge less interest than credit cards, and you can have a longer time to pay off the debt.

Personal Loan can also be as taken from your relatives. Yes, your relatives can help you out a lot in these times. Not just relatives, but friends too! You can borrow money from your close friends and relatives, and there is a big chance that they will lend you because they trust you, but borrowing money from relatives or friends comes at a risk. Be very careful while doing so, and only borrow money from people who are close to you and if you are 100% sure that you will be able to pay them back. If you take money from them and fail to pay them back, then it will put good relationships into danger, so think about it first then borrow money.

2. No interest balance transfer card: This is a type of credit card which is available for a promotional period. It allows you to transfer your credit card balances to it, but most of the time, you will need a good credit score to qualify for these cards.

Make a proper budget before the promotional period ends because after that, the rate will become almost the same as a regular credit card. There are main disadvantages of using this: It takes a good credit score, it includes a balance transfer fee and the interest starts to increase after 8 to 12 months when the promotional period is over.

3. Withdraw money from retirement account: You have probably already started putting money away in a retirement account. In some cases, you can withdraw that money to clear your credit card debts. The benefit of doing this is that there won’t be any credit check to take the money out of your retirement account. If you have the retirement account on 401 (k) loans, then you can even avoid early withdrawal fines.

The best part about doing this is that you are actually borrowing money from yourself, and the loan will not be counted in your credit report, but since you are taking money out of the retirement account, it can impact your retirement plan, so be careful and think it through before doing anything.


These are the 3 effective tips to consolidate your credit card debt. Credit Card debt can be a big hassle to deal with, and If you are not prepared for it properly and just paying minimum without a proper plan, then it will take you decades before you go debt free again. If you read all these 3 tips properly, then by now you should have understood how easily you can get debt free again. Follow these steps and whenever you take a loan from relatives, bank or from your retirement plan, be sure you know the consequences. Good luck


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I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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