How to Consolidate Credit Card Debt without Hurting Your Credit

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Debt is a daunting and troublesome thing for most people. There are many cases of bankruptcy due to debt accumulation. One of the biggest debt contributors comes from credit cards. For that, this time let’s discuss the ways on how to consolidate credit card debt without hurting your credit score since the score is the future for borrower.

Basically, there are many ways to pay the debt through consolidation. Literally, consolidation means combining two things into one. The same applies to credit card debt. The ultimate goal is to make the best use of the money you have on hand to pay your credit card debt without going bankrupt or hurting your credit score.

Different Ways to Consolidate Credit Card Debt

  • Loan-to-loan payment

This method is considered the easiest and quickest way to pay debt by consolidating it. You should look for lenders who are willing to lend money to pay your debt. Make sure that the loan period of lender has a long period of time, so you can pay it as well.

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Once you find the right lender, you can directly use the loan funds to pay your debt. After you pay off your credit card debt, it will appear “paid in full” statement on your credit report. Do not forget to pay your second loan when you already have sufficient budget. It’s a simple move for you who don’t know how to consolidate credit card debt without hurting your credit score.

  • Balance transfer

This way on how to consolidate credit card debt without hurting your credit score is somewhat similar to the loan-to-loan payment. In this way, instead of paying off the debt with the money loan, you will share your credit card debt to some “reserve” credit cards, so your credit score does not fall too deep. This method has also been supported by various credit card providers.

First, you should be able to compare a credit card provider with others. Then, once you find a provider that has an excess benefit, you can apply for those credit cards immediately. Make sure your score is at least 680 for the bank to accept your application. When the business of application is complete, you should start dividing your debt into new credit card. Moreover, transfer your credit card to the new one. You can transfer either through online or directly to the bank.

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After the transfer is complete, you can immediately feel the promotional benefits of your new credit card. Use these benefits to pay off your debt; do not spend on anything else. Make sure your debt pays off according to the promotional deadline given; otherwise you will be stuck in more debt.

That’s some ways on how to consolidate credit card debt without hurting your credit score. Debt is to be paid because it is a sign that you are in a bad economic condition. After your debt is paid, make it a lesson so as not to spend money on things that are not useful.