The amount of your monthly payment will depend on the total amount, interest rate, and payment terms of your consolidation loan.
There are thousands of companies that claim they can help you consolidate or manage your credit card debt so that you pay less or reduce your payment.
Whether you should consolidate your credit card debt depends on your individual circumstances and the terms of the consolidation.
Read on to learn more about whether credit card debt consolidation is right for you.
Obtain an Unsecured Personal Loan Obtain a Secured Loan by Offering Property as Collateral Obtain a New Credit Card Work through Consumer Credit Counseling Services Community Q&A Debt consolidation is the process of using a single large loan to pay off multiple smaller debts.
This allows the debtor to make a single regular payment, rather than several smaller ones.
(To learn more about managing credit card debt, see out topic on getting out of credit card debt.) Consolidating your credit card debt essentially means combining all of your debt into a single loan or paying your creditors through a single monthly payment.
This means that instead of owing money on multiple credit cards, you now have a single obligation.
The new laws mean that potential credit providers now have access to more comprehensive information about your level of indebtedness and more specifically, the way you manage your debt.
Until now, credit providers could only see your personal details, credit infringement information and the amount of times you may have applied for credit (assuming that the credit provider made an enquiry).
Simply put, it brings a number of debts into one easy payment.
It makes sense that it would be easier to deal with one debt instead of many.