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3 Things To Consider Before Consolidating Your Credit Card Debt

Being in debt can be a real drag and the burden of debt from multiple credit cards can add a lot of stress to your daily life.  It also can be a hassle to keep track of which credit card is due which day of the month and all of the different minimum payments due at different interest rates.  If you have multiple credit cards with debt, you may be considering consolidating all of the debt into one loan.  This can be a smart financial decision in some cases, but before you start making phone calls and contacting companies or banks to consolidate your credit card debt, here are 3 things to consider.


Know The Numbers

It is vital before consolidating your credit card debt to know all of the numbers.  You need to know how much debt is on each card and what the APR is.  Some numbers may be higher than you were expecting and some may be lower.  It is also important to know your credit score as it will be easier for you to shop around for a debt consolidation loan with a lower APR than if you were to have a lower credit score.

Does It Make Sense To Consolidate All Of The Debt Into One Larger Loan

After looking at the numbers regarding the debt on your credit cards you owe, the APRs attached to those cards, and your credit score, it is important to evaluate if debt consolidation is right for you.  Do you only have debt on 2 cards with fairly low interest rates?  Then debt consolidation may not be for you.  If you have a few credit cards with balances with less than desirable interest rates you may want to consider consolidating them onto one card.  Suze Orman, financial expert and author, recommends seeing if you qualify for a low interest or zero interest introductory rate for the first 6 to 12 months on a balance transfer card, then moving your higher interest card balances to the new card.

Do Research On The Company You Consolidate With

Debt consolidation companies are everywhere, but finding one that is legitimate that has gotten high ratings and stellar reviews from reputable sources are harder to come by.  The best way to go about researching if a particular debt consolidation company is right for you, go check it out with the Better Business Bureau.  The BBB is the best place to find out about a company before you do any type of business with them.

Before considering going the debt consolidation route to fix your credit card woes remember to think it through.  Make sure you do thorough research on what your debt is, what the APR is and what your credit score is and if you ultimately decide to consolidate your credit card debt, find the right company who will help you through the process.