Consolodating debt

08-Jun-2020 17:10

Also, if you’re unable to repay the loan on time, you might be putting their finances at risk.The following are other credit card consolidation methods that are available, but we don’t recommend them because they’re riskier than the options we’ve discussed above.Keep in mind that you may not be allowed to transfer balances between cards issued by the same lender.And if you opt for a balance transfer, it’s especially important to pay on time because late payments may cancel the introductory APR offer.Pros: When you borrow money from somebody you know, you don’t have to meet minimum eligibility requirements to qualify for the loan, and you may be able to get a lower interest rate than you would from a bank or credit union.Cons: Borrowing money from someone you know is tricky because it can put a strain on your relationship.Pros: A credit counseling organization may work with your creditors to set up a debt-management plan on your behalf, which requires you to make a single monthly payment to the credit counseling organization each month.The organization then uses the money you provide to pay your creditors.

A balance transfer lets you move balances from one or more credit card accounts to a different card.

In addition, some cards charge a balance transfer fee, which will add to the debt you must repay.