To consolidating debt

One method is to consolidate all their credit card payments into one, new credit card—which can be a good idea if the card charges little or no interest for a period.

They may also utilize an existing credit card's balance transfer feature (especially if it offers a special promotion on the transaction).

With either type of loan, the interest rates are still typically lower than the rates charged on credit cards.

Say that you have three credit cards that charge a 28% APR; they are maxed out at ,000 each and you're spending 0 a month on each card's minimum payment.Although each lender will probably require different documentation depending on your credit history, the most commonly required pieces of information include a letter of employment, two months' worth of statements for each credit card or loan you wish to pay off, and letters from creditors or repayment agencies.If you have a good payment history with a bank, credit union or credit card company, asking that institution about a debt consolidation loan should be your first step.“Typically, the loan has to be paid off in three to five years,” says Harrine Freeman, CEO, and owner of H. Freeman Enterprises, a credit repair and credit-counseling service in Bethesda, Maryland, and author of “How to Get Out of Debt.” These types of loans don’t erase the original debt; they simply transfer all your loans to a different lender or type of loan.If you need actual debt relief or don't qualify for loans, it may be best to look into a debt settlement rather than, or in conjunction with, a debt consolidation loan.

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