Do you ever feel like your credit card debt is getting the best of you? Don’t worry, you aren’t alone. With so many options available to us these days to take out different credit cards, it can be easy to spiral into debt without even realising it. When you have a number of different cards open, all with different debt sizes, different interest rates and different repayment schedules, it can be hard to keep up. This is what leaves us asking, can I consolidate credit card debt? There are a number of different options available.
What Is Debt Consolidation?
The process of debt consolidation is fairly straight forward. The idea is to combine your current credit card debts into the one single debt. There are many benefits that come with this. It makes the debt easier to manage, with just the one repayment to keep track of. You also have the bonus of being able to get a better interest rate on the debt, meaning you save yourself money in the long run as well. If you are struggling with multiple credit card debts and are looking for a better option, then you might be wondering, can I consolidate credit card debt.
Can I Consolidate Credit Card Debt?
Have you been asking yourself the questions, can I consolidate credit card debt? It can be overwhelming to have so many different debts all needing to be managed individually. Consolidating credit card debt is a great way to overcome this and there is a number of different ways you can go about it. So, how can I consolidate credit card debt?
1. Transfer Credit Card Debt
This is the first option many people turn to in order to help them manage their debts. The idea is simple, you transfer all your current credit card debts onto just one card. This is a good way to make your credit card repayments much easier to manage, with less interest in the process. The only issue with this option is that you need to ensure your credit card debts aren’t too large that they exceed the balance transfer limit, and that you can pay it off before the end of the period. If not, it is worth considering another option.
2. Taking Out A Personal Loan
Another great option when it comes to paying off credit card debt is a debt consolidation personal loan. This is a loan you apply to take out, which moves your credit card debts into a new loan. Ideally, this is achieved at a lower interest rate than you are currently paying on the credit cards. Personal loans have a fixed repayment structure, which means taking one on can eliminate the fees that are paid on multiple credit cards, while also getting rid of the hassle of repaying different lenders. Learn more about the benefits of debt consolidation loans here.
In order to take out a personal loan, you will normally need to have a good credit history. However, if you struggle to get approved, you can always go down the route of a bad debt consolidation loan. Before taking out a personal loan, you need to be sure you can meet the repayments and budget for them accordingly.
3. Using Your Home Loan
One final option available to you is refinancing your debts through your home loan. This means your credit card debts will be added to your mortgage. Home loan rates are generally much lower than credit card rates, and can often be lower than personal loans as well. This makes this a great option when you are looking to consolidate your credit card debt. However, there are some things you need to consider.
Refinancing your home loan is only likely to be possible if you have built up a certain amount of equity in your home. Therefore, it is worth looking into how soon after buying a house can you refinance. It could extend your mortgage by up to a few years and take even longer to pay back. In the process, you end up paying more interest overall. There can also be extra fees that come with refinancing your home. Such as break costs, establishment fees and more.
Each of these options come with their advantages and disadvantages and it is about working out which one best suits your situation. In the end, being able to bring all your credit card debts into one loan has many benefits that can help you get on top of your finances. You can also avoid this altogether by tackling your credit card debts one at a time and closing them off at the end.
Getting Credit Card Debt Help
Are you wondering, can I consolidate credit card debt? You aren’t alone. The team at Debt Consolidation Australia is here to help. We get to know your individual circumstances and give you the best advice for your situation. We will help you manage your debts to make them more manageable, easier to pay off, and with the best interest rates possible. Give us a call today.