Mortgage debt consolidating finance companies
A lender may lower the interest rate on your credit card balance when you participate in a debt management plan.Debt management plans typically last three to five years.And you can verify if a lender is registered to do business in your state by contacting your state Attorney General’s office or your state’s Department of Banking or Financial Regulation.Beware of any lender that promises to offer you a loan regardless of your credit.Promotional interest rates expire — like 12 months of a 0% APR on a balance transfer card — so make sure you can repay your debt within that time frame, otherwise you may not be saving any money at all.The same goes for debt consolidation loans: Ask about any loan origination fees, and make sure the loan payment amount is something that easily fits into your budget.For it to truly help you get out of debt, you have to stick to the plan, whether that’s paying off your credit card balance within a 12-month promotional financing period or making sure you make payments as agreed for the entire five-year loan term.
Whichever option you choose, you will use it to pay off your multiple balances.
It’s also a good idea to stay clear of websites and lenders that charge you big upfront fees for a debt consolidation loan.
With a debt management plan, you make one monthly payment to a credit counseling agency and the agency pays each of your credit card lenders.
You can get your free annual credit report from each of the three major credit reporting agencies — Trans Union, Equifax and Experian.
And, Credit.com’s free credit report summary can help you understand what’s inside your credit report. There are several safe and smart ways to consolidate credit card debt, so you’ll want to research them before deciding what’s best for you.
Then you’ll only have one monthly payment: the loan, the credit card or the debt management plan.