Definition: What is Credit Card Consolidation?


If you've run up a lot of debt on a lot of different cards, then credit card consolidation might be for you. 

Credit card consolidation is a process where you obtain a loan that will essentially consolidate all of your smaller credit card debts into one large debt. 

This is usually done when someone is suffering as a result of their debt, and either suffering from damaged credit or an inability to make payments on their cards. 


Definition: What is Credit Card Consolidation?

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If you've run up a lot of debt on a lot of different cards, then credit card consolidation might be for you. 

Credit card consolidation is a process where you obtain a loan that will essentially consolidate all of your smaller credit card debts into one large debt. 

This is usually done when someone is suffering as a result of their debt, and either suffering from damaged credit or an inability to make payments on their cards. 

Credit card consolidation is sometimes offered as a product of credit counseling agencies.

People with high debt loads on a number of credit cards will not have a good credit rating, and will have difficulty qualifying for things like a mortgage. 



Addition Definition and Benefits of Credit Card Consolidation

When you combine the debts into a single consolidated loan, it improves your credit situation almost immediately.

As you pay down the loan, your credit score will continue to improve. 

Credit card consolidation is also a huge money saver. 

With some credit cards charging around 20% interest, you can spend a lifetime paying them off if you only make your minimum payments. 

A consolidation loan might be available at a much lower interest rate, and with effort you can pay off your total debt much more quickly.



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