How to Consolidate Credit Card Loans

Consolidating credit card balances in a single loan could save you money. Interest rates on bill consolidation loans are usually considerably lower than credit card interest rates. The result of consolidation could be a lower overall monthly payment, providing you with flexibility to manage other financial obligations.

Instructions

1

Gather all credit card statements. Decide how much money you need to pay them all off by adding up the amounts.

2

Shop for bill consolidation loans and also consider home-equity loans if are a homeowner. Check several banks and credit unions to find the lowest advertised rates. In addition to checking around in your home market, check other lending institutions' websites.

3

Obtain credit reports from the three nationwide reporting bureaus.Check them for accuracy. Write letters to them specifically asking that each remove any inaccurate information. The bureaus are required by law to do this as of 2010. Also look for any accounts reporting as past due. Make payments to bring those accounts current before applying for credit. The credit report self-audit will improve your approval chances for new credit avenues. Obtain free credit reports from the Annual Credit Report website. Click on "Request Report" from the home page. You can also telephone your order at 877-322-8228. The site was established by the three nationwide reporting agencies to provide free reports as required by federal law. Visit each credit bureau's website. Under "Disputes" menu tab, you can enter the correct information for the items you are disputing. The contact information for the bureaus: Equifax, P.O. Box 740241, Atlanta, GA 30374-0241, 800-685-1111; Experian, P.O. Box 2104, Allen, TX 75013, 888-397-3742; TransUnion, P.O. Box 1000, Chester, PA 19022, 800-916-8800. (See Resources for websites.)

4

Apply for bill consolidation or home-equity loans. Bill consolidation loans generally are unsecured, meaning they are guaranteed only by your signature. Real estate is needed for collateral for home equity loans. Use the proceeds from your loan to pay off credit card debit. In addition to a bill consolidation action or a home-equity loan, consider cutting up your credit cards and closing the accounts to avoid building up new balances.