If you’re worried about your accounts being sent to collections or you just need help putting a repayment plan in place, consolidating your credit card debt may be an effective solution for your problems.
The type of debt consolidation program you select depends on a number of factors, including how much debt you have, what your current interest rates are, and how close you are to defaulting on your accounts.
Here’s where the peer-to-peer process differs from a regular loan.
Individual investors (peers) finance your loan and profit from the interest you’re charged — just like a regular bank would.
So you might have better luck getting your loan funded with a P2P lender than with traditional financial institution.
A debt management company works with your creditors to reach an agreement upfront so that you won’t be charged late fees or have your account sent to collections while you repay.
It’s also convenient because you only have to worry about making one payment each month instead of trying to remember several different due dates.
There are a couple of things to be aware of when considering a balance transfer for credit card debt consolidation.
To get you started, we’ve pulled together some of the most popular methods for consolidating credit card debt, along with explanations of how they work and who they can benefit.
If you’re within striking distance of paying off the bulk of your credit card debt, you might want to consider consolidating your various balances onto a single credit card.