When your debt seems to be getting worse and you owe money to several different credit cards, it's a good idea to consolidate your bills. Minimum payments can add up, and if you only pay the minimum, you'll never get anywhere. When you decide to combine your bills, you're taking the first step toward paying off your debt.
Interest rates are fees that credit card companies charge. That's one way they make money. If you pay late, they will also charge you late fees and double or even triple the minimum payment. All of these things are ways they make money for themselves. At the same time, you may be struggling to pay off your credit cards on time. It's easier and cheaper to get that payment down to a lower one that you can afford.
Before you can consolidate your bills, you have to get together all of the credit card bills you already have to pay. If you have good credit, the next time you get an offer in the mail for a credit card with no interest, apply for it and move your balances to it. This will give you a lower monthly payment that you can pay a few dollars more on each month. This will help you pay off your debt more quickly. At the same time, doing this gives you more of your monthly income to spend on whatever you want.
If you have more debt than one credit card offer can cover, you might want to look into a loan to help you pay it off. This way, you'll still have one lower monthly payment and more cash each month. The only real difference is that you won't be borrowing this money from another credit card company, but from a company that specialises in helping people get out of debt. If you feel like you can't handle your own money, this kind of company may also offer some kind of financial education. They will be able to teach you how to make sure this doesn't happen again.
When you combine your bills, it can be very helpful. It helps you get out of debt more quickly than you could on your own. It gives you more money each month to spend on whatever you want. It can teach you about your own money. If you think you're having trouble paying your bills, consolidating them will definitely help.
