Consolidating Credit Card Debt - A Guide for Students

Find Debt Relief in Credit Card Consolidation

Man with credit card
Blend Images - Peter Dressel/Brand X Pictures/Getty Images

Why It's Important to Pay Off Your Credit Card Debt

Having a large amount of credit card debt can have a negative impact on your credit score. A low credit score can make it difficult to get fair rates on private students loans, car loans, and other types of credit. Your score can even negatively affect the cost of your insurance or your ability to get housing. 

If you have a large amount of student credit card debt, you should do your best to pay it down as soon as possible.

This means paying more than the minimum payment amount each month. You should also avoid charging anything else to your cards as you pay the debt down. 

Why It's Hard to Pay Of Your Credit Card Debt

Paying down your credit card debt is difficult because you have to pay more than just the amount you charged - you also have to pay interest. When you are a student in college, it can seem impossible to pay more than the minimum payment amount on your credit cards. However, if you don't pay more, the interest can accumulate and the amount of credit card debt that you incurred could grow to outrageous proportions.

The Benefits of Consolidating Credit Card Debt

If you are burdened with credit cards that have large balances, you may want to consider consolidating your credit card debt. Consolidating credit card debt can lower your monthly bills and save you a great deal of money over time. If possible, it is best to roll all of your credit card payments into one loan.

This will allow you to rid yourself of high interest rates, minimum payments, and late fees. By consolidating your credit card debt, you may even be able to reduce your debt faster.

If you have serious debt problems, you should definitely consider seeking the advice of a credit counselor. A professional credit counselor will be able to educate you about your options and can help you to decide if consolidation will help or harm your finances and your credit score.

 

Choosing a Credit Card Debt Consolidation Lender

Many debt relief companies perform the same tasks that you can do yourself. The problem with this is that you have to pay them a fee to do something that you can do for free. When choosing a debt relief specialist, it is recommended that you find a company that can provide services that you cannot personally take care of. For example, some credit card debt consolidators can help you get an additional mortgage to pay off your credit card debt. Others will provide credit counseling and/or negotiate lower balances and fees with your creditor. 

Format
mla apa chicago
Your Citation
Reeder, Carrie. "Consolidating Credit Card Debt - A Guide for Students." ThoughtCo, Oct. 31, 2016, thoughtco.com/consolidating-credit-card-debt-466495. Reeder, Carrie. (2016, October 31). Consolidating Credit Card Debt - A Guide for Students. Retrieved from https://www.thoughtco.com/consolidating-credit-card-debt-466495 Reeder, Carrie. "Consolidating Credit Card Debt - A Guide for Students." ThoughtCo. https://www.thoughtco.com/consolidating-credit-card-debt-466495 (accessed December 17, 2017).