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Are you trying to get a handle on your credit card debt? Does the thought of making those payments keep you awake at night? You’re not alone. Credit card debt has skyrocketed, and consumers are struggling to manage their debt-loads.

Perhaps you’re considering an unsecured credit card debt consolidation loan.

This article will tell you what to know about unsecured credit card debt consolidation. You will not only find out that it is less complex than you might imagine, but you will also discover ways to get out of debt using two creative unsecured options.

Once you take action on either of the below options, you may benefit from:

  • Eliminating Debt Faster
  • Streamlined Payments
  • A More Simplified Financial Portfolio
  • A Restructured Payment Plan
  • More Disposable Income

Balance Transfers

Unsecured Credit Card Debt Consolidation

If you’re like most consumers, your mailbox may be full of credit card offers. Many of those offers are soliciting you because the company believes your creditworthiness deserves to earn their business. They are typically pre-approvals or prequalification. Don’t discard them. Do your due diligence about the offer, and the company, because you could find a “gold mine” that may solve your credit card debt consolidation dilemma.

Balance transfers are often within the pre-approval credit card offers that you receive. Typically, the offer will be at a low-interest rate or zero percent. All it takes is completing the short application online and using the pre-approval code that they provide to get an instant decision. If approved, you can usually request a balance transfer the same day, unless restrictions prevent you from doing so.

Start with your highest interest credit card rather than the highest balance. The objective is to lower the credit card interest that you’re paying, which is the primary reason why you’re unable to reduce the credit card debt, to begin with.

Personal Loans

Getting an unsecured personal loan is the most practical way of reducing credit card debt. And there’s no collateral to be concerned with. Most lenders that provide these types of loans are well aware the loans will be used for unsecured credit card debt consolidation, so it’s not unheard of. Therefore, you should not be weary when applying.

A wide array of lenders that offer personal loans, but you want to steer clear of those that are primarily doing business as an unsecured personal loan lender. Although the payments for the loan may be affordable, the interest rates are often extremely high. Instead, use a reputable lender, such as a bank or credit union. The rates are more desirable.

The primary benefit of an unsecured personal loan for credit card debt consolidation is that it’s a closed-end loan, meaning it has an end to it. Once you make the final payment, the debt is gone forever.

Here are five tips for preparing for a credit card debt consolidation loan:

  1. Request a copy of your credit report before applying for a loan to review for errors.
  2. Write down all of your credit card balances and payments to calculate the amounts for accuracy and best results.
  3. Make sure that you do not pay off any amount that is currently in dispute with the credit card company.
  4. Contact your credit card companies to inquire if you’re already approved for low-interest or zero-interest balance transfer offers.
  5. Consider using a financial advisor to help you plan the credit card debt consolidation, such as a credit card counselling agency.

Once you solidify your relationship with the lender by making continued payments on time, they may offer you an extended amount of credit to give you more money. While this may seem like a good idea, it’s not. Once you commit to getting out of debt by using a credit card debt consolidation loan, stick to it until you have accomplished your goal.

Now that this article has advised you what to know about unsecured credit card debt consolidation, you can begin the process of regaining your financial power and have more peace of mind.

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