More Tips on Consolidating Credit Card Debt
Awhile ago, we at Sound Money Tips published some Tips on Consolidating Credit Card Debt. Thanks to some readers who wrote in, we have a few more top tips to add to the list. If you’re suffering from credit card debt, don’t forget to also check the Sound Money Tips Guide to Credit Cards, and Monday’s post…
1. Beware the Introductory Rate – Credit card companies can trick you into signing up for a credit card with a promotional intro rate, approve you, and then only after the card has been activated, send you a letter in the mail to inform you that only a portion of your balance was approved for transfer to the new, super-low rate card, leaving you with a partial balance on one card, and a partial balance on another.
2. Raise the Limit – This can have an impact on your credit card score, since having a limit of $500, with a balance of $400 is a lot worse than having a limit of $5,000 with a balance of $400.
3. Last Resorts – Outtadebt proposes a series of different “last resort” ideas for consolidating credit card debt, including: taking a loan from your retirement accounts, borrowing the cash value of your life insurance policy, taking out an equity loan, and borrowing money from friends and relatives.