top of page
Writer's pictureLista Admin

How to consolidate credit card debt

Pagbaon ka na sa utang at walang tigil ang paglobo ng interes, maybe it’s time for a debt consolidation.


How to consolidate credit card debt

Credit card and loan debt can feel like a monster that won’t quit… the monster being the interests na tuluy-tuloy lang lumolobo habang tumatagal. If you find yourself in this situation, baka pwede mong i-consider mag-debt consolidation that, fortunately, banks welcome.


What is debt consolidation?

Consolidating your credit card debt is a smart move to simplify your payments and save some serious cash in the long run. Think of it like rolling all your different debts into on neat package. Imbes na iba’t ibang lender or banks ang binabayaran mo buwan-buwan, you’ll make just a series of payments to a single lender.


How do I ask for a debt consolidation?

Kahit mukhang mahirap humingi ng tulong sa mga bangko, they do welcome debt consolidations when asked. You can call your bank’s collections department and apply for it — normally it takes a couple of days to get approved and a restructuring of your debts. Here’s how you can start:


Check your credit score.

A good credit score can help you get lower interest rates on your consolidation loan. If your score needs a raise, consider paying down existing debt or checking for any errors on the report.


Explore your options.

Marami kang pagpipilian na paraan para lumiit ang utang mo. You can do by personal loans, home equity loans, and balance transfer.


  • Personal loans. These come with fixed rates and fixed monthly payments. Mas madali kang makakapag-budget dito dahil mas predictable ang mga babayaran mo each month. Plus, they often have lower interest rates than credit cards.

  • Home equity loans. If you own a home, magandang option ito. Mababa rin ang interest rates dahil sasaluhin na ng bahay mo partially yung babayaran mong utang. Pero tandaan mo, if you can’t make the payments, your house is on the line.

  • Balance transfer. You can also apply for a balance transfer with a 0% introductory APR (Annual Percentage Rate) for 12-18 months. Ang ibig sabihin nito, wala ka na munang babayaran na interes on top of what you owe. However, after the introductory period ends, the APR will increase to the regular rate, which can be much higher.


Evaluate each option carefully, then choose.

Pag-isipan at planuhin mo ang mabuti ang next step mo. Consider the interest rates, fees, and terms. Personal loans are straightforward, while balance transfer cards offer a temporary reprieve. Home equity loans can save you the most in interest but have bigger risks.


Change your spending habits.

And lastly, kung gusto mo talaga maging debt-free, kailangan mo mag-adjust. Magsimula ka sa paggawa ng budget at talagang gamitin ito from time to time. Umiwas ka rin sa pagbili ng mga ‘di naman kailangan. Focused ka lang dapat sa pagbabayad ng utang mo para may peace of mind ka.


By following these steps, you’re not just paying your debt to zero; you’re reclaiming your financial freedom! Imagine a future where your money works for you, not against you. Basta may plano at disiplina, lahat ng bagay kaya mong lagpasan, including turning the page on your debt and starting a new chapter with financial peace.

1,288 views0 comments

Recent Posts

See All

Comments


bottom of page