What to Do to Consolidate Debts of Several Credit Cards?



 

How to get out of debt is a concern when you are overwhelmed by the balances of your credit cards??

It is very easy to fall into that situation. Simply supplement the salary by making payments with credit cards and, at the end of the month, pay the minimum fees.

In this way, the debts begin to grow due to the high interest rates they charge and turn into an unstoppable snowball.

In search of a solution

In search of a solution

In that case you lose more than money, you lose your financial tranquility, so it is important that you look for ways to consolidate debts and clean up your finances.

It is necessary that you elaborate a budget and that you are very disciplined with your expenses, so that you have money available to pay more than the monthly minimums of your cards.

If your budget is still not enough, consider finding an additional source of income or getting rid of a good, such as your car, so you can get out of debt more quickly.

How to face it?

How to face it?

Follow these tips:

  • Recognize the situation and evaluate it. Add all your balances so that you know the extent of the problem and you can find a way to deal with it.
  • Stop using the cards. Keep them in a safe place and make all your purchases and payments in cash.
  • Analyze your financial situation and prepare a budget. List your income and your fixed expenses, including food, transportation, clothing, entertainment. In addition, it records all the small expenses that you make every day and that represent an expense of your income without you noticing.
  • Decide what expenses you can cut. It may be that you should temporarily suspend your cable service, stop eating out on weekends or change your cell phone plan to a cheaper one; whatever is necessary to have more money available for payment of your debts.
  • List your debts. Enter them, including the balance and the interest rates they charge, and order them by putting the most expensive ones at the beginning.
  • Pay at least the minimums of the other cards and pay more to the one that charges the higher interest rate. Once you have liquidity, use that new money available to pay off the next debt on your list.
  • Consolidate your debts. Ask for a personal loan with lower interest rates with which you can pay the balances of your cards. This way you will be left with only one debt and it will be easier to manage.

Clean your credit record

Clean your credit record

Once you start your payment plan your next concern should be “How to improve my credit record?”

This is important if at some point you fall behind in your card payments, since your credit history is the one that opens doors to other healthier financing options such as mortgage loans or loans to finance a business.

The important thing is that you liquidate your debts and, henceforth, avoid falling back into the same situation. Make sure there is no outstanding balance, however small, and if any creditor institution reported you to the rating agency, find a way to delete the report and clean up your history.

With Bi-Fácil loans from Banco Industrial, you have the best options to finance your projects: from consolidating debts, studying a master’s degree, starting your own business or making the trip of your dreams, Bi-Easy makes your goals possible today..

Leave a Reply

Your email address will not be published.