Consolidating bank of america credit cards
Each option has advantages, disadvantages and challenges.Here’s a closer look: If you’re struggling with debt, you may have already been approached by companies that promise they will help you wipe out your debt. Such companies may charge you hefty fees for consolidating your debt, and it’s possible to wind up even further in debt if you don’t fully understand the company’s fees and conditions.Some credit card issuers offer very low rates or even zero interest as a promotion to entice new customers to open accounts with them or transfer balances from another card.
Another option for people with good credit scores may be to transfer balances from high-interest credit cards to a card with a lower interest rate.Also, be sure to read the terms and conditions carefully.Some cards have interest rates that skyrocket if a payment is missed.The program length will depend on the information provided by your account holders, such as balances and interest rates.Any missed payments under the plan could negatively impact the program length with changes in interest rates and additional fees and charges that could increase balances.If you own a home and have equity in it, you might think about tapping into that equity to pay off high-interest unsecured debt.A home equity loan or line of credit (also called a HELOC) will generally have a much lower interest rate than credit cards, and you’ll reduce the number of creditors you pay each month.The act of opening a credit card can be helpful or hurtful depending on your credit history.An inquiry can negatively impact your credit score.Let them know you’re struggling and ask them for help.Don’t wait to make the call until you just can’t afford to pay them anymore or your account has been turned over to a collections agency. Creditors may be willing to accept a reduced payment, lower your interest rate and waive fees and penalties rather than see you default on the amount you owe.