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| If you're able, ask a family member for a loan, which could be a way to keep your head above water. A safe way to do this is to put everything in writing, and to be very clear about the terms and conditions of your loan. If you apply for a card and get rejected, don't apply for the same type of card at another bank. Each time you apply for a credit card, it's recorded on your credit report, and if it's recorded that you're rejected repeatedly, your credit history will suffer. |
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If you have more than one credit card with an outstanding balance, it's time to consolidate. If one of your cards has a lower interest rate than the others, transfer the high interest balances to the lower interest card. By putting everything on the lower interest card, you'll cut out extra fees and save money on the interest you'd be paying by having more than one card--money you can put toward paying off your debt. If you only have one card but it has a high interest rate, investigate cards with lower rates. Credit card companies have become extremely competitive, and there's no reason to pay a high interest rate when a lower one is available. Just be sure to read the fine print: A 2.9 percent interest rate might sound great, but not if there's an annual fee of $200. If you apply for a card with a lower rate and are accepted, transfer the balance from the high interest card onto the new card. In either scenario, you should cancel your old cards as soon as you transfer the balance, so you're not tempted to use them again. In fact, you can even cancel the credit card that you keep the balance on before it's paid off, if you want to be absolutely sure you'll be free of credit temptation. If you've maxed out so many cards that you can hear the bankers laughing at your credit application, it's time to research some low interest loans. Many banks offer personal loans called debt consolidation loans. Just be sure you're borrowing from a reputable institution (check with the Better Business Bureau to make sure), and that you read the fine print. If you can, bank with a credit union, which will have loans at lower rates than ordinary banks. Many also offer free checking and savings accounts. To find out if there's a credit union in your area that you're eligible to join, contact your state’s credit union league (if you live in the U.S.).
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Consolidate
