Options for consolidating credit card debt
Debt consolidation refers to any debt relief option that rolls debts of the same type into a single monthly payment.The goal of consolidation is to pay back everything you owe more efficiently.If you had out-of-pocket medical expenses that were not paid by insurance, these bills can quickly turn into collections.Medical debt collections are the number one cause of bankruptcy in the U. Back to top Usually debt consolidation affects your credit in a positive way as long as all the payments are made on time.You can also learn about other options like a debt management program or debt settlement.
Even if you go your own way, it doesn’t hurt to consult a certified credit counselor for free debt analysis.
If you’re making debt payments every month, but it feels like you’re getting nowhere fast, it may be time to consolidate your debt.
You may have heard the term “consolidation” but unless you’ve used one of these solutions before, you may not understand exactly how it works.
However, there are also other versions, such as a Home Equity Line of Credit (HELOC) or balance transfer credit card. Again, the specifics tend to vary based on what type of debt you owe.
Consolidation programs are most commonly seen with tax debt and credit cards.