Ohio Debt

Ohio Credit Card Consolidation

Credit card consolidation can be accomplished through different methods. The details of your own unique financial situation will dictate which methods are most feasible and advantageous for you.

For example, if you are a homeowner with substantial equity in your home, then you may have the ability to use a home equity loan to pay off your credit card debt. If this sounds familiar and you have a good credit score, then you might want to consider meeting with your banker or mortgage professional right there in Ohio.

An unsecured debt consolidation loan is often more difficult to come by. The acceptance criteria are more stringent, and the total available loan amount often does not meet your total loan needs. As a result, you likely cannot consolidate all of your credit cards into an unsecured debt consolidation loan, even if you are approved for one.

Sometimes a large amount of available credit on a single credit card account can be used to consolidate your credit card debt. If the fixed interest rate is low enough, you can even save enough to more than offset the 3% balance transfer fee that is normally charged. Lower temporary rates may be tempting, but you should expect them to expire far before you are able to repay a substantial portion of your debt.

If you have heard about credit card consolidation through consumer credit counseling, then what you are referring to is called a debt management program. What is unique about a debt management program is that you do not have to qualify for a loan, nor do you need good credit to be eligible.

Instead of consolidating the debt balances, the payments themselves are consolidated. That way, you can usually end up making just one payment that is disbursed to all of your credit card issuers.

Additionally, that one payment that you make is normally lower than you are currently paying. This is possible through the interest rate reductions that major creditors commonly provide through a debt management program. Therefore, even though you will likely pay less each month, you can actually repay your debt much faster, often within three to five years!

The catch is that you must stick with the program in order to keep the preferred benefits. Since missing payments can jeopardize benefits, our Accredited Financial Counselors work with you to make sure that you demonstrate the ability to afford your consolidated payment.

To learn more about your consolidation options, inquire about debt management and the process for determining your eligibility.

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