credit card debt payment
What is the best way to consolidate all my husband and I’s credit card debt into one payment?
Together we have 10 credit cards totaling up to about 12,000 in debt. It is so hard paying 10 different companies.. Should I take a loan out, pay them off, then pay on the loan? I need advice.
Shifting all the credit card debt to one big loan isn’t such a good idea. While you might have only one payment and maybe even a better interest rate, folks tend to run those credit cards right back up. Then you have the big loan payment and the credit cards to pay.
Instead, you should work on paying off all that credit card debt. Take every penny you can squeeze out of your budget and throw it at the highest interest rate credit card, while making minimum payments on the rest. When the highest rate card is paid off, move to the next till they are all paid in full.
Find ways to bring in extra cash — have a garage sale, collect alum cans, get a second job. Throw it all at the credit card debt.
If you really work at it, you can pay it all off within 2 years.
Once you get those credit cards paid off, only charge what you can afford to pay in full each month. You may want to close some of those accounts, particularly store and gas cards.
