Consolidating debt into a new mortgage

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But, before applying, be sure to ask about the lender’s credit requirements.Keep in mind that you’ll need Be sure to check out any potential online lenders with the Better Business Bureau before applying for a debt consolidation loan online.For it to truly help you get out of debt, you have to stick to the plan, whether that’s paying off your credit card balance within a 12-month promotional financing period or making sure you make payments as agreed for the entire five-year loan term.Throughout the process, you can keep tabs on how your credit card consolidation plan is affecting your credit by reviewing your free annual credit reports and viewing your Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser.Promotional interest rates expire — like 12 months of a 0% APR on a balance transfer card — so make sure you can repay your debt within that time frame, otherwise you may not be saving any money at all.

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Credit cards may have a balance transfer fee, so you’ll want to make sure that cost doesn’t outweigh the potential benefit of getting a lower interest rate on your debt.Keep in mind a debt management plan may have a negative impact on your credit during the course of the program because your creditors will close or suspend your accounts while in the program, and this can affect your credit utilization.So make sure you are ready to live credit card free for a while.You can get your free annual credit report from each of the three major credit reporting agencies — Trans Union, Equifax and Experian.And, Credit.com’s free credit report summary can help you understand what’s inside your credit report. There are several safe and smart ways to consolidate credit card debt, so you’ll want to research them before deciding what’s best for you.The best way to consolidate credit card debt — and whether consolidation will work for you at all — depends on your situation, so you might want to consult a non-profit credit counselor about your best options.

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