Credit cards can help you afford things you need if you dont have the money right now, but they often lead to trouble. Some people overspend, while others are forced to rely on credit cards more than they’d like because of a job loss or an unexpected expense.

No matter how you got into debt, if you’re struggling to make your monthly payments, you’re probably feeling overwhelmed. It may feel like you’ll never be able to get out of debt, especially if you have high interest rates.

Debt consolidation can allow you to pay off your balances in a relatively short amount of time. It can enable you to combine all of your credit card debts into one bill with a single monthly payment. That can make it much easier to manage your finances.

Debt Consolidation Options

One option is a balance transfer, allowing you to transfer your balances from one or more high-interest credit cards to another card that offers a lower interest rate. Some cards even offer balance transfers with zero percent interest, but you’ll have to pay balance transfer fees.

You can also take out an unsecured consolidation loan to manage your debt. The interest rate on the loan will be lower than the interest rates on your credit cards, which means you’ll be able to put more money toward principal and pay off your bills faster.

A third option is a debt management program. That can help you create a plan to pay off your debts and allow you to receive counseling to help you avoid running into a similar problem in the future.

Things to Consider

When you consolidate your debts, you’ll be able to significantly lower your interest rates. That means with each payment, a higher amount will go toward the principal on your balance. This way, you can pay off your debt in a fraction of the time it might otherwise take.

Consolidating your debt can help you avoid damage to your credit score because of missed or late payments. Consolidation can make your payments easier to manage, which means you’ll be less likely to have missed or late payments and will be able to maintain or improve your credit score.

If you decide to consolidate your debt, you need to be careful not to overuse your credit cards while you’re paying off your balances and dig yourself deeper into debt. You need to stick with the repayment plan, or else you might wind up facing penalties and interest.

A Way Out of Debt

If you’ve gotten in over your head with credit cards, debt consolidation could be what you need to get back on track. By consolidating your debt, you can lower your interest rates and pay off your bills faster. If you stay on the right path, you can get yourself out of debt and keep it that way.

Published with permission from RISMedia.