• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

National Debt Relief

National Debt Relief - A+ BBB Accredited Business - Get Relief From Credit Card Debt, Medical Bills And Unsecured Loans

Talk to a debt counselor toll free:

800-300-9550

Get Relief From Credit Card Debt

Medical Bills and Unsecured Loans

  • Apply Now
    • Qualifications
    • Is This Right For Me?
  • Proven Results
    • Debt Relief Benefits
    • Credit Card Debt Relief
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Login
HomeBlog Credit Card DebtThe Right And Wrong Ways To Consolidate Credit Card Debt
Video Transcript

Free Debt Consolidation Quote

By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
  • National Debt Relief, LLC BBB Business Review
  • McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

The Right And Wrong Ways To Consolidate Credit Card Debt

October 21, 2012 by National Debt Relief

Depressed looking woman with stack of bills and credit cardsDebt consolidation has become one of the most popular ways to get big debt under control. There is no statistic for the number of people who opt for debt consolidation each year but it is thought that more people choose this than those who file for bankruptcy. And more than 1,367,006 have filed for some form of bankruptcy just this year.

Should you consolidate your credit card debt

If you owe $5,000 or less in credit card debt, you’re probably not a good candidate for debt consolidation. It’s really for people who are facing a staggering amount of credit card debt and can’t see any way to pay it back by just making their monthly payments.

A simple test

There is actually a simple test you can do to determine whether or not you need debt consolidation. Take out all of your credit card statements, add up the interest you’re paying on them each month and compare this with the minimum monthly payments required. If you find that your minimum monthly payments are roughly the same as your interest charges, you’re a good candidate for debt consolidation. This is because if all you can do is make just your minimum monthly payments you will literally never get out of debt.

The “wrong” ways to consolidate your debts

Three of the most popular ways to consolidate debt are basically the “wrong” ways, which I will explain in a bit. The three ways are a debt consolidation loan, a debt management plan and a credit card balance transfer.

Debt consolidation loan

A debt consolidation loan will consolidate your debts and should give you a lower interest rate and lower monthly payments. But you need to be able to borrow enough to pay off all of your debts and, depending on how much you owe, this just might not be possible. For example, if you owe $10,000 or more, you would probably have to get what’s called a secured loan. And to do this you would have to have an asset such as equity in your home valued at $10,000 or more. In addition, it will most likely take you 7 to 10 years to pay off that loan.

Debt management plan

An alternative to getting a debt consolidation loan is to go to a consumer credit counseling agency and let it help you develop a debt management plan. This is a way to consolidate your credit card debts in that once all of your creditors accept your plan, you won’t be required to pay them any longer. Instead, you will pay the counseling agency once a month and it will then pay your creditors.

Balance transfer

A credit card balance transfer is where you transfer the balances on all of your high-interest credit cards to one with a lower interest rate. Today, there are available 0% interest balance transfer cards. These are cards that carry a 0% interest rate for anywhere from 6 to 18 months. If you transfer all of your balances to one of these cards, you will have consolidated your credit card debts and you’ll have a period of time where all your payments will go against your balance – to help you get out of debt faster.

Why these are all the “wrong” way to consolidate credit card debt

What makes all of these options the wrong way to consolidate credit card debts is because none of them can reduce your debt. They are just ways to move your debt from one set of creditors to another. And no matter which of these you choose, it will take you anywhere from 5 to 10 years to pay off your debt.

The right way

The right way to consolidate credit card debts is to put our debt counselors to work. They will negotiate with your creditors to get your balances and interest rates reduced. They will help you develop a payment plan that will likely save you thousands of dollars and help you become debt free in 24 to 48 months. This is called debt settlement and while it will have a negative effect on your credit score, it won’t be as serious as if you have filed for bankruptcy.

Choose the “right” way to consolidate credit card debt. Call our toll-free number today for complete details.

Do you qualify for debt consolidation?

National Debt Relief
National Debt Relief

National Debt Relief is one of the largest and best-rated debt settlement companies in the country. In addition to providing excellent, 5-star services to our clients, we also focus on educating consumers across America on how to best manage their money. Our posts cover topics around personal finance, saving tips, and much more. We’ve served thousands of clients, settled over $1 billion in consumer debt, and our services have been featured on sites like NerdWallet, Mashable, HuffPost, and Glamour.

Follow National Debt Relief: Facebook Twitter Instagram Linkedin

Primary Sidebar

Consolidate Your Debt!
Find out how NDR could help.
  • Get one low monthly payment
  • Avoid bankruptcy
  • Get out of debt in 24-48 months
Get Your Free evaluation
Free Debt Consolidation Quote
By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
 Trusted By Our Clients

"Relief"

I was relieve to know someone could help me with my finances. The person who helped me was very good at her job and explained everything to me. I am glad for the help and would recommend your services to any one with a financial problem. Thank you. Oscar Bicknell

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Oscar Bicknell
ConsumerAffairs Reviews

Latest Credit Card Debt Posts

  • 4 Debt Management Money Saving Experts To Make Sure You Follow
  • What Is Credit Card Churning And Should I Try It?
  • Help! I Am 5 Years From Retiring With Huge Credit Card Debt!
  • What Is the Best Credit Card Payoff Plan?
  • The Truth About Credit Card Debt In The US
National Debt Relief, LLC BBB Business Review AFCC Top Ten Reviews Gold Top Consumer Reviews Consumers Advocate Trust Pilot
Company
  • About Us
  • Contact Us
  • Blog
  • Careers
  • Corporate
  • Privacy Policies
  • Terms Of Site
  • Disclaimer
  • Sitemap
Products
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Debt Settlement
  • Calculators
  • FAQs
Debt Resources
  • Credit Card Debt
  • Medical Debt
  • Personal Loan Debt
  • Unemployment
  • Divorce Debt
  • Retiree Debt
  • Veteran Debt
  • Business Debt
  • Personal Finance
Follow Us
  • Facebook
  • Twitter
  • Linkedin
  • Instagram
  • Pinterest

© 2021, National Debt Relief, All Rights Reserved.

Disclaimer
Disclaimer
Disclaimer