Consolidating bills into mortgage

Nerd Wallet recommends visiting your local credit union first.

Most credit unions offer their members flexible loan terms and lower interest rates than online lenders, especially if you have a low credit score.

consolidating bills into mortgage-20

With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.

Second, you may be able to set up a consolidation loan that lets you pay off your debt over a longer time than your current creditors will allow, so you can make smaller payments each month.

You’ll need a good to excellent credit score — above 690 — to qualify for most cards.

Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.

You can use that money to pay off your credit cards or other debts.

A HELOC typically requires interest-only payments during what’s known as the draw period, which can range from five to 20 years but is typically 10 years.

Consolidation works best when your ultimate goal is to pay off debt.

The four most effective ways to consolidate credit card debt are: This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.

A consolidation loan can reduce your monthly debt payments in two ways.

Tags: , ,