When to Consolidate Your Credit Cards

The credit cards in your wallet could be weighing you down or allowing you greater financial freedom. You must ask yourself if your credit cards have become a burden and make sure you are not starting a cycle that will cause financial strife for you later in life. The following situations are signs you should consolidate your credit cards as soon as you can.

Your Interest Rates Are Too High

You may not be able to get your interest rates lowered on your credit cards, but you can lower the interest rates by simply moving the debt. A credit consolidation loan has a lower interest rate than most credit cards.

Your Payments Are Out Of Control

If your credit card payments are so high that you’re not sure you can make them regularly, then you need a way to reduce those payments as soon as possible. Consolidating your credit card debt into one loan will immediately lower the total amount you are paying every month. The savings varies depending on your situation, but you will save money as soon as you consolidate your debt.

You Miss Payments Often

Keeping up with several debt payments can be difficult, and sometimes a payment can slip through the cracks. Consolidating your credit card debt will allow you to make one payment every month and thus eliminate the chances of missed payments. This payment is easy to remember, and will likely be lower than your previous payments.

You Need Financial Flexibility

Since the interest rate on consolidated debt is lower, you can pay off your debt sooner. This can give you more room financially for your budget or allow you to make a large purchase you need. The financial flexibility you gain from consolidation can save your family from major financial trouble.

You know your financial situation better than anybody, and only you can decide the right time to consolidate your credit cards. You could decide to stop using credit cards to save yourself some money while you work to eliminate credit card debt. Or you could consolidate your credit cards to make sure your family has enough money in the budget every month. If you fit into any of the previous scenarios, then you should seriously consider consolidating your credit cards.

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