Credit Cards can be quite convenient when you are planning to buy something important and do not have the money in your bank account at that point in time. This type of card can give you a convenient payment option to allow you to shop effortlessly. Hence, it is surely very comfortable when you wish to buy something instantly and pay later in easy installments.
However, this ease of use of the credit card can instill an unhealthy habit of unnecessary and excess shopping. Sometimes, people also use more than one credit card for getting better offers. But they can end up in much higher debts as well. In such a situation, it is difficult to manage many debts at the same time and can make it an endless struggle.
To avoid such a situation, you can consolidate all the credit card debts into a single and manageable source of debt as well as lets you calculate the payment installments easily. You can also pay your debts regularly.
Here are a few ways you can consolidate your credit card debts:
- Review the Credit Card Bills
The first thing you should do if you own debts from multiple credit cards is to review their statements to check if there are any frauds or errors as they can be quite big as well.
- Check if you can pay in cash
Before finalizing any other option, check your savings to see if you can make the payments in cash or from any of your old investments. See if your total debt can be paid through any of your savings completely or partially.
- Get yourself a Personal Loan
If your savings are not sufficient to pay your credit card debts, get yourself a personal loan to clear them. They are the best way to clear a short-term financial requirement as they are collateral-free. This loan can help you clear all your credit card debts in one shot and then you can pay your personal loan.
- Plan using your credit card wisely
After you have managed to clear your credit card debts, plan to have regular savings for any future requirements. Use them not for regular use but only in case of any emergencies.
Also, do not forget to check on your credit card interest rates as that is what you will end up paying.