Pros and cons to consolidating credit card debt
If you’re thinking about tackling your debts, it is important that you look at the advantages and disadvantages before you make your decision.Looking at the pros and cons will help you make a more educated and informed decision about dealing with your debts., Care One will negotiate with your creditors to pay back a portion of your existing debt.
For a credit card consolidation loan to be worth your while, you’ll want a plan that offers a lower interest rate and/or lower monthly payments than you’re currently paying to your creditors.
It’s helpful to mention competing offers or plans that you’ll consider if your creditors don’t seem willing to work with you.
As with any financial goal, whether you choose a credit card consolidation loan or other payoff method depends largely on your current financial situation, including your existing debts, whether you can afford your current monthly payments, the interest rates you’re now paying to your creditors, and how quickly you’d like to pay off your bills.
On the other hand, an interest rate negotiation is an agreement with your creditors to lower the interest rate on your credit cards.
You’ll contact each of your creditors to request better rates on your open accounts.