For our purposes in this article, we shall call debt consolidation loans or credit card consolidation loans, credit card loans. These are loans that can be taken out in order to consolidate credit card debt. Credit card loans can simplify your financial troubles, by leaving you with one lender, one due date, one interest rate, and one monthly payment instead of juggling several different credit card debts and their requirements.
Credit card loans are widely available and are either secured (counting your property as collateral) or unsecured. Generally, secured loans are more easily obtained because the creditors are more assured of being paid back. If you were to declare insolvency and then file for bankruptcy, the creditors would get more back on a secured loan.
If you are eligible for secured credit card loans, ehow.com suggests that you begin by surveying many lenders to find the best deal possible. You then will want to figure out exactly how much you need to borrow and can afford. Many sites, including Bankrate.com, have calculators that can quickly crunch your numbers. Check out the fees involved, including any early repayment penalties. And remember that in secured credit card loans, you are using your property as collateral, which means that you could lose it if you become insolvent. Finally, you will want to pay off the loan as soon as possible.
In the case of unsecured credit card loans, the same suggestions apply. If you are having difficulties obtaining unsecured credit card loans, the problem may be your credit score. You can learn your credit score at Equifax or Experian, both of which have easy to use websites. If this is the case, you will have to reorganise more than your credit cards.
Finally, as with any loans, including credit card loans, beware of scams. If the offer sounds too good, proceed with caution.