Refinance Credit Card Debt And Benefit From The Results
It is wise to think of ways to quickly erase those multiple credit card debts. To refinance credit card debt is to speed up the debt elimination process
When you choose to refinance credit card debt, you will apply for a single loan to pay off all of your existing credit cards. It will give you the convenience of making just one monthly payment than to distribute monthly payments to different credit card companies. You can avoid those harassing phone calls from collection companies because youíve already paid them off.
One way to refinance credit card debt is to have an application for a second mortgage or home-equity loan. Another way is to transfer several credit card balances into another credit card with a high limit and low annual percentage rate (APR). A home-equity loan means that you are putting your house as collateral on your debt. If you do not repay your home-equity loan, you could lose your house.
When you decide to refinance by getting a home-equity loan, talk to different lenders to get the best deal possible. Banks, as opposed to mortgage brokers will typically give you better rates and much lower closing costs.
Ensure that there is no penalty for early repayment of the loan. Borrow only enough money to pay off your current credit card debts. It can be tempting to borrow up to the full value of your home, but this will just lead you to another large debt for you to pay off.
Cancel all the credit cards once they are paid off. You do not want to regress to your old ways. You should pay-off the second trust deed or home equity loan as quickly as possible.
Refinance by transferring balances to your other credit card. Find the right credit card which has a high limit and low annual percentage rate. Make sure you read the fine print-credit card companies can be very sneaky!
Some cards offer a great deal or promotion for balance transfers. You may be able to negotiate with one of your existing credit cards to get your limit raised and your annual percentage rate lowered.
Transfer all of your outstanding balances to the designated card to refinance credit card debt. Do not incur new charges on that credit card to which the balances have been transferred. Try to pay at least 5 to 6% of the balance of your credit card every month. Pay well above the minimum payment or better yet, perform double payments.
If you cannot refinance your credit card debt, you may seek the advice of a debt consultant. There are programs and strategies that can diminish your debt in approximately 2-4 years.
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