fbpx
Get Good Credit - Phone
Give Us A Call Today!
(877) 212-2450

Keeping Track of Debt: Should I Consolidate?

Posted by on Friday, August 19th, 2022 in Blogs
Keeping Track of Debt - Get Good Credit

Sometimes we may have an overabundance of credit cards that we use for specific purposes, special occasions, or just to keep a belly full for another week. However, with many credit cards comes many different creditors, banks, and financial institutions to keep track of, which means different due dates and statements. It can be a headache to remember when to pay off what, and people already have it tough trying to keep up with all their utilities. But we can avoid that tremendous head pound by consolidating all of that debt into a single payment.

Debt consolidation is taking multiple lines of credit and debt and putting it all into a single account to keep track of. This means all that debt will be under the same interest rate and same due date. This can be handy and convenient if someone has a lot of debt in multiple accounts.

However, before you start debt consolidation you should take several things into consideration as it may become a bigger burden than several individual debts. Things to consider include:

For example, Timothy has four credit cards with various debts and interest rates that can range from 12.99% to 17.84% based on national averages. If Timothy has been keeping up with payments and has built a good reputation with his creditors, then he’ll most likely have a good credit score as well. He decides to get a consolidation loan at a lower interest at 7% or so, which will save him money over time compared to his current credit cards’ APR.

However, if Timothy has missed payments on his cards and accrued bad payment history, he’ll have a much lower credit score. A debt consolidation loan may then be from 15% up to 21%, which may even be worse for him in the long run.

Credit Card - Get God Credit

 

Two Most Common Ways to Consolidate Debt

When it comes to consolidating debt, it’s important to be mindful of how that debt is consolidated in the first place. The two most common and less risky ways are to either open a new revolving credit card or to get a debt consolidation loan from a reputable financial institution.

Credit Card Balance Transfer: Many credit card companies out there will offer a set time period of 0% APR and may even include bonuses for balance transfers. These cards are great at absorbing every other card and putting it all onto one account, and the best part is that the first 6 to 24 months will be at no extra interest, saving a lot of money! However, be sure to pay off the debt in a timely manner before the interest rate kicks in.

Debt Consolidation Loan: Many lenders can also pay off your debt for you and create a loan with the company instead. These are fixed-rate loans that are paid off over time like a car or house payment. These are good if you suspect that you have fair or bad credit and you know that you may need more time to pay off the loan.

Other options are also available such as a home equity loan or a 401(k) loan, but these incur much more risk to the consumer. After all, losing a house or retirement fund will make a credit card seem trivial in comparison.

Debt Consolidation - Get Good Credit

What to Do?

If you have a good credit score (above 700 or so), then you should be able to open a credit card for balance transfers. On the other hand, a lower score would mean that you would want to get a consolidation loan (less than 700).

If you want to raise your credit score you can call Get Good Credit at (877) 212-2450 for a free consultation from one of our professionals. We offer credit repair services to help improve your score to get a better deal on a loan or credit card.

If you have any questions, feel free to give us a call at 877-212-2450!

We also invite you to click on the following link to see our reviews on yelp.

You may also like: Late Payments: The Credit Destroyer

 

Get Good Credit - Yelp

  •   Ok so I've been holding off writing this review for about 7 months. And as you can see by the 5 stars I left I'm beyond happy with the services this company provided me. I was skeptical at 1st even though they had stellar reviews (which is why I chose them) but there's always that thing in the back of my mind of "well they probably won't be able to help me though, I will be that exception they cant fix". Needless to say they absolutely crushed getting EVERY collection I had off my report!!! I had about 5 grand worth of stuff on there that they managed to make disappear like magic. My credit has shot up over 150 points! I cannot say enough good things about them. I even referred my coworker to them after and they sent me a $50 referral check back! If you're looking to clean up your credit, don't wait, call these superstars and get on your way to feeling confident about your credit again. I feel like a huge weight has been lifted off my shoulders and I'm so grateful. Thank you fix your credit!!!

    thumb Rob ..
    8/27/2022
  •   I worked with Mia and Said for over a year, I believe. They were beneficial and responsive. Although we were not successful with all of my accounts, they still helped me raise my credit by about 100 points. So I stand satisfied. I recommend them. Not to mention there prices are very competitive. Thank you all.

    thumb Alex G.
    8/17/2022
  •   I called this place about 3 months when I decided it was time to fix my credit.   I spoke with Mia, she walked me thought the whole process in a 5 minute phone conversation.  It was simple enough so I decided to pull the trigger and signed up.  Its only been 3 months and already they have removed negative items and improved my score significantly.   I strongly recommend to give them a call as soon as possible, I waited too long and I wish I would have called sooner. I will update in a few months with the final results.

    thumb Ivan A.
    5/25/2022
  •   These guys are legit and professional at what they do and very quick as well very responsive and knowledgeable and they will do everything they can on your behalf
    ASK FOR MIA SHE IS THE BEST.

    thumb Edward N.
    3/22/2022

Customer Reviews