In dealing with heavy credit card debt, a lot of New York consumers opt for debt consolidation. There are several different versions of this process, but the end goal is always the same. Namely, New Yorkers who choose credit card debt consolidation roll multiple debts into one payment in order to reduce or eliminate interest charges. This helps them pay debts off faster so they can improve both their financial standing and credit scores.
Because New York consumers have options when it comes to consolidating credit card debt, they should carefully choose the one that is right for them. This is because your best consolidation option will largely depend on your credit score, income, and debt level.
Three Consolidation Options for New York Consumers with Heavy Credit Card Debt
Once they determine that credit card debt consolidation is the best solution, New York consumers should look at three different ways to accomplish their goal.
Use a balance transfer credit card.
This option is best for New York credit card users with good to excellent credit scores. This is because issuers typically offer 0% APRs as perks for transferring balances – but only to qualifying applicants. As usual, credit card companies reserve the best rates and terms for consumers with the best credit. So, if you have heavy credit card debt coupled with a great credit score, this is likely the best option for you.
New Yorkers who opt for balance transfer credit cards to consolidate their debts should remember that, usually, the 0% APR period lasts for six to 24 months. Because it is a temporary perk, they should plan to pay off their debt as quickly as possible, before the regular interest rate kicks in.
Take out a personal debt consolidation loan.
This is another option that typically only works well for indebted New York consumers with good credit scores. This is because taking out a personal debt consolidation loan to pay off credit card balances only saves you money if you get a good interest rate on the loan.
Once you get approved for this type of loan, the lender pays off your credit card balances, then you pay off the loan over the agreed-upon term. If possible, you should shoot for a shorter loan term. Yes, a longer loan term will lower your monthly payments. However, it will also cause you to pay more in interest charges over time.
Enter a debt management program.
This is a form of assisted credit card debt consolidation, and it is the best option for New Yorkers with bad credit scores. Debt management programs are also good for those with too much credit card debt to consolidate on their own.
When you enroll in a legitimate debt management program, a non-profit credit counselor negotiates with your creditors on your behalf. Ideally, these counselors persuade creditors to reduce or eliminate the interest charges on credit card balances. Then, you make one payment a month to the debt management agency, and they pay the credit card issuers. As a word of warning, some New York consumers notice a slight dip in their credit scores when they enter a debt management program. Yet, the point loss is very small compared to the credit score boost that comes with paying down credit card balances and eliminating debt. Also, when choosing a debt management program, make sure that avoid scams by choosing a reputable, non-profit agency.
How New York Consumers Who Escape Credit Card Debt Can Protect their Credit Scores
New York consumers rebuilding or maintaining good credit scores after coming out of heavy credit card debt should regularly check their credit reports. They may not realize this, but about 80% of New York credit reports contain errors of some type. And, unfortunately, many of these inaccuracies bring down credit scores.
Luckily, the Fair Credit Reporting Act (FCRA) entitles all consumers to error-free credit reports. However, you must first find the mistakes on your credit reports in order to eliminate them. So, go to www.annualcreditreport.com, and request free copies of your credit reports from TransUnion, Equifax, and Experian. The Fair and Accurate Credit Transactions Act (FACTA) allows you to do this once every 12 months. Therefore, all New Yorkers should take advantage of the opportunity.
If, while reviewing your credit reports, you find mistakes and errors, don’t try to dispute them on your own. Instead, contact Credit Repair Lawyers of America in New York. When you call our firm, our team of credit pros will connect you with an experienced credit attorney. Then, we’ll do whatever it takes to fix your credit issues and get you clean credit reports – for free.
The Free and Legal Way to Get Better Credit in New York
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, 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 settled cases. 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 Carl Schwartz at (646) 859-3045 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/credit-repair-free/.