Three methods to consolidate your credit card debt

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Three methods to consolidate your credit card
debt but which is the best?
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• When it comes to money management, debt
  consolidation is one of those topics that can
  easily intimidate. While the idea is simple
  enough, the challenge of being approved for new
  credit and choosing the right credit product is
  where things quickly become complicated. This
  guide will walk you through each step, so you can
  make the choices that are right for your
  circumstances.

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• What is credit card debt consolidation?
• In theory, debt consolidation is straightforward.
  It involves using a new line of credit whether
  it be a personal loan, balance transfer card or
  secured loan to repay multiple debts.
• This effectively rolls all your various debts
  into a single monthly repayment which, ideally,
  benefits from a lower interest rate.
• When you use the right credit product, credit
  card debt consolidation could net you significant
  savings and make your financial management easier.

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• Method one Borrow against your home
• If your property has risen in value since you
  purchased it and/or youve repaid a substantial
  sum on it you may be able to take out an equity
  release loan.
• Pros Equity release loans tend to offer
  significantly lower interest rates as compared to
  credit cards, the main reason for which is that
  the lender has something to balance the risk
  against.
• Cons To qualify for the lowest interest rate
  youll need to have reasonable credit. You also
  need to bear in mind that there would be serious
  consequences if you fall behind with your
  repayments and your home will be put at risk.

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• Method two Use a personal loan
• Personal loans are unsecured (e.g. they are not
  backed up with an asset such as your home or
  vehicle).
• These types of loans sit in the middle of equity
  release loans and credit cards in terms of their
  interest rates, and they tend to run for between
  12 36 months, for amounts of between 1,000 and
  12,000.
• Pros There is a huge variety of personal
  lenders to choose from, including high street
  banks, online lenders and credit unions. This
  competitive landscape can mean that you benefit
  from a good deal.
• Cons If you have anything less than a
  reasonable credit rating you may struggle to
  qualify for a personal loan, and if you are
  approved youll almost certainly pay a higher
  interest rate.

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• Method three Use a balance transfer credit card
  
• Balance transfer credit cards come in many forms,
  but the most effective for debt consolidation is
  one that offers a 0 interest rate on any
  transferred balance for 36 months. While some
  providers charge an immediate fee of between 1
  3, there are a limited number that will allow
  you to transfer your balance free from charge.
• Pros If you manage to repay the balance during
  the 36 months (or whatever the promotional period
  is) you would be able to avoid paying any
  interest at all.
• Cons You may not qualify for a balance transfer
  card with a limit high enough to cover all your
  debts.

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• Struggling to secure debt consolidation credit?
• Due to the nature of debt consolidation and the
  borrower having multiple debts, many applicants
  have already reached a point where their options
  for new credit are incredibly limited.
• If all three methods outlined above end in
  rejection, there will still be a solution out
  there for your circumstances. Individual
  Voluntary Arrangements are one such option, and
  theyre sky-rocketed in popularity in recent
  years, with 19,020 consumers choosing this form
  of debt management in the first quarter of 2019
  alone.

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• IVAs are a form of insolvency. This debt solution
  runs for between five and six years (which
  timeframe of the two will depend on whether or
  not you own your own house). After the IVA is
  finished, any remaining debt is written-off.
• Should you choose this debt plan, youd work
  alongside a provider to calculate how much you
  could realistically afford to pay each month.
  This can instantly improve your financial
  circumstances, and it also means that your
  creditors would be unable to pursue you or take
  any further action against you.

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Thank You

• National Debt Help
• Beckwith House,
• 1 Wellington Road North,
• Stockport, SK4 1AF
• https//www.national-debt-help.co.uk