Are you trying to determine if credit card debt consolidation is the best choice for your personal situation? As with anything in this life, there are upsides and downsides to consolidating your credit card debt.
To help you determine if this is the best choice, we’re going to share the pros and cons of consolidating credit card debt. So take a look and see if this is the best course of action to meet your specific needs.
Credit Card Debt Consolidation Pros
- Eliminate Multiple Monthly Credit Card Payments and Roll Them into One
Unfortunately, some people are just so disorganized that they are late with credit card payments or miss them altogether because they have too many bills to pay each month.
If this is you, then credit card debt consolidation is going to be a godsend.
Why? By rolling all of your credit card bills into one easy and convenient bill to pay, you’ll have a much simpler time managing your budget, managing your bills, and quickly and easily paying your unsecured debt when the bill comes in at the appointed time each month.
- You’ll Be Able to Pay off Your Debt Faster
When you consolidate your debt, your interest rate is going to be lower. This provides the unique opportunity of paying back your debts much faster.
Why?
Well, each credit card payment you make is going to put a bigger dent in your principal payment. By paying less interest, you will effectively put more money toward paying down your actual debt.
The ultimate result is that you may be able to pay off your debt a few years faster than you would if you kept everything at the status quo prior to the debt consolidation.
According to Consolidation.creditcard, a website sharing the pros and cons of consolidating credit card debt, “Dealing with credit card debt is never easy. It is a stressful time that often sees you scrambling to pay off your debt so that your creditors can be paid back and you can stop receiving calls from collection agencies.”
So, if you’re sick and tired of hearing from collection agencies, consolidate your credit card debt, pay off your bills quicker, and get these guys off your back much faster.
- Debt Consolidation Could Prevent Damaging Your Credit
By consolidating your debt, you’re taking the necessary steps to keep on top of it. Otherwise, you could have potentially hurt your credit score because you missed payments or stopped paying your cards altogether.
This is also a great way to prevent filing for bankruptcy.
So consolidate your payments, lower your interest rate, and stop worrying about messing up your credit.
Credit Card Debt Consolidation Cons
- You Could Dig Yourself into a Deeper Hole If You Aren’t Careful
The whole purpose of credit card debt consolidation is to eliminate your credit card debt altogether. So, you do not want to begin using your charge cards again and racking up even bigger bills now that some of them are still open with a zero balance.
Try not to open any new accounts at this time. And definitely avoid using your old credit cards again now that the option is open to you.
This is how you’ll dig yourself out of the hole and avoid burying yourself even further.
- You’ll Be Back at Square One if Your Payoff Plan Doesn’t Work
It’s imperative that you stick with your payment plan once you’ve consolidated your debt. If you don’t, you could damage your credit and make matters much worse for yourself.
Conclusion
Use this information to determine if credit card debt consolidation is the right move for your particular situation.