How to Merge Debts

Reducing debt is often a long process as you send each credit account a little money each month. However, there are tactics to help you get rid of your debt faster and manage your debts. Debt consolidation is a way to merge your debts into one bill and make one payment a month. This benefits you if you have high interest rates on your credit cards, because debt consolidation often results in a lower rate and fewer interest charges. A drop in interest charges helps you pay down the balance faster.

Instructions

1

Move your high interest credit cards. Check the interest rates on your existing credit cards, and then apply for another credit card to see if you can get a better rate. If so, move or transfer the balance from your higher interest cards to the card with the lower rate.

2

Take advantage of lower rate home equity loans. A high credit rating (700+) can qualify you for a low interest rate home equity loan, and you can use money from the loan to consolidate or merge your outstanding debts. Check with a mortgage broker to compare rates on an equity loan or line of credit.

3

Get a secured debt consolidation loan. Take personal property like your car and use it as collateral for a low-rate debt consolidation loan. Apply with your personal bank and then compare the quote with one or two other institutions to get the best interest rate.

4

Use debt counseling to merge your debts. Services can help you consolidate your debts and get a better interest rate. Nonprofit debt/credit counseling agencies offer education, debt management services and negotiating tactics to help you repay your debts sooner.