How much does it cost to consolidate four credit cards?

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How much does it cost to consolidate four credit cards?

A recent study found consumers have an average of four credit cards with a combined balance of nearly $6,200, which costs an average of $1,162 annually in interest. If you’re one of the millions of consumers with a mountain of debt spread across multiple cards, consolidating that debt into a single payment probably sounds pretty good.

Q. What is the disadvantage of debt consolidation?

You may pay a higher rate Your debt consolidation loan could come at a higher rate than what you currently pay on your debts. Extending your loan term could get you a lower monthly payment, but you may end up paying more in interest in the long run.

Q. Is debt consolidation a good way to go?

Debt consolidation is usually a good idea for borrowers who have several high-interest loans. If your credit score isn’t high enough to qualify for a lower interest rate, it may not make sense to consolidate your debts.

Q. Is it possible to consolidate credit card debt?

But can you really consolidate all of that debt onto a single card? In a word, yes. Credit card offers with 0% interest rates on balance transfers are designed to help you consolidate debt from multiple cards. However, you need to ask some questions when deciding whether to go this route:

Q. Which is the best way to pay off credit card debt?

It may seem counterintuitive but getting another credit card might be the best way to pay off credit card debt. Of course, it must be the right card, one that’s specifically designed for transferring the balances from other high-interest credit cards.

Q. Can a home equity loan be used to pay off credit card debt?

According to the CFPB, you receive a home equity loan in a lump sum. And like a personal loan, you could use those funds to pay down other debts, including credit cards. But a home equity loan can be risky: If you can’t pay it back, you could face foreclosure on your home.

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