Four Ways for Michigan Consumers to Consolidate Credit Card Debt

For Michigan consumers who want to consolidate heavy credit card debt, here are four options to consider. One may be right for you.

Michigan consumers with heavy credit card debt may benefit from debt consolidation. When you consolidate credit card debt, you roll several balances into one. Typically, Michigan residents who do this look for a way to pay less interest on the new, consolidated loan or credit line. When it comes to debt consolidation, those with better credit scores typically save more money. However, there are still options available for Michigan residents with fair credit or even bad credit. Also, credit repair is always an option for consumers who want the best deal possible when consolidating credit card balances. As a bonus, Michigan consumers who improve their credit scores typically save money in other ways as well.

Try One of these Options to Consolidate Credit Card Debt in Michigan

For Michigan residents who want to eliminate credit card debt and possibly pay less in interest charges, one of these options might work. Just remember that there are always risks attached to paying off debt with more debt. So, make sure to keep up with payments on your new loan or credit line. It’s also a good idea to rein in spending if you want debt relief.

Apply for a 0% balance transfer credit card.

Many credit card issuers offer incentives to Michigan consumers with good to excellent credit scores. For example, if they sign on to transfer their existing credit card balances over to a credit card issued by the new company, they get a break on interest charges. In fact, many creditors advertise 0% balance transfer credit cards. Normally, these cards come with no interest for the first 12 to 18 months. For Michigan credit card users with high balances and good credit scores who want to pay off credit card debt quickly, this is a good deal. However, there are no 0% balance transfer credit cards available for consumers with fair credit to bad credit.

Take out a personal loan to pay off balances.

Banks, credit unions, and online lenders offer personal loans, and there are options available for most credit types. Of course, good credit applicants get the best interest rates on all types of personal loans. Although, consumers with less than perfect credit who want personal loans should go to their local bank or credit union in Michigan first. Because they have established relationships with these institutions, they may get okay interest rates on loans provided there.

Take out a home equity loan or line of credit to pay off credit cards.

Obviously, this option only works for Michigan residents who own their own homes. Also, there are both perks and risks that come with these types of loans and credit lines. With a home equity line of credit (HELOC), you may get up to ten years in which to only make payments on the interest. However, this means that if you want to pay off the loan faster, you’ll need to pay more than the minimum amount due each month. For Michigan consumers with less-than-perfect credit, HELOCs might work to pay off debt because getting approved for one does not require a great credit score. Yet, because your home serves as collateral, you could lose it if you get behind on payments.

Pay your credit card debt off with a loan against your 401(K).

With a 401(K) loan, you’re essentially borrowing money from yourself. So, a lot of Michigan credit card users with high balances like this option for paying off debt. Another nice perk that comes with these types of loans is that they don’t show up on your credit reports. This means that they don’t lower your credit score by throwing off your debt to income (DTI) ratio. Although, 401(K) loans come with risks too. For example, if you borrow from an employer subsidized 401(K), you could bring down the size of your retirement fund. In addition, if you stop making payments, you will incur steep penalty fees.

Another Way for Michigan Consumers to Improve Credit Scores

Paying off high credit card balances should help you credit score. This is because your credit utilization – or, how much of your available credit you’re using – is factored in when your score is calculated. Another way to get better credit in Michigan involves regularly checking your credit reports. Unfortunately, most Michigan consumers have errors of some type of their credit reports, and many of these mistakes harm credit scores.

Luckily, getting clean credit reports is easy with the help of Credit Repair Lawyers of America in Michigan. When you contact our firm, the best credit repair lawyers will remove mistakes and errors from your credit reports for free. If you’re unsure about whether or not your credit reports are accurate, call us for a no-cost credit report review. After securely sending us recent copies of your credit reports, our credit pros will go over them with you and catch any errors we see.

The Free and Legal way to Get Better Credit

Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America in Michigan, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in cases that are settled. This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (248) 353-2882 or contact us on our contact page.