Having multiple credit cards can seem like a great thing if you gain different benefits from each, such as miles, cash back, or merchant benefits on a department store card. But if you start losing track of the different balances and what you owe, the monthly payments can feel overwhelming. Plus, credit card debt is expensive. If you carry a balance on your card you could pay high interest rates, as much as 20% or more on what you borrow.
Credit card consolidation brings multiple credit card debts together into a single debt, and therefore a single monthly payment which is less usually less expensive. There are several loan options to consolidate your debt, which can reduce your interest rate and your monthly payment. Consider your financial position to find the right choice for you. Some options include:
- Personal Loan-These can be secured or unsecured loans and are for a set amount of money, repaid over a set period of time.
- Home Equity Loan-Use your home’s equity to get a loan for a set amount of money, repaid over a set period of time. You receive a single lump sum that is usually lower than what you would pay on a personal loan.
- Home Equity Line of Credit (HELOC)- Use your home’s equity to get a loan for a set amount of money, repaid over a set period of time. You borrow only what you need up to a cap at an adjustable rate that is usually lower than what you would pay on a personal loan.
Contact your bank to help you find the right option for you.
Financial Resolutions for 2023
A study by Northwestern Mutual found that 92% of adults in the United States agree that nothing makes them happier than when their finances are in order. So, making financial resolutions for 2023 is a great idea. Here are the top financial resolutions for 2023 recommended by top financial advisors.
- Set a budget
To start budgeting download an app like You Need A Budget or Mint to help your understanding of what money is coming in and going out. Once your budget is established, look for patterns in spending to determine what can be cut like memberships that you don’t use.
- Plan Ahead for the Expected and Unexpected
With increased inflation, your budget may be tighter than what it was. So, it is necessary to include expected events, like a friend’s wedding in May, and unexpected events, like an emergency room visit, in your budget. Setting money aside for such events will help take stress off of you when the events occur. Consider using a high yield savings account or certificate of deposit to hold these funds and grow it over time.
- Improve Your Credit Score
To improve your credit score make debt payments on time and in full—if possible. Additionally, keep old lines of credit open and don’t open new lines of credit.
- Continue to Invest
Continue to invest in your investments like retirement accounts. If you haven’t started to invest, there is no time to start like to present.
- Insure Yourself
Review your policies to make sure your coverages are correct and consider taking out a life insurance policy, if you don’t already have one.