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I owe about $6,500 in credit cards and I am starting to get overwhelmed. Do you recommend debt consolidation or getting a personal loan and just paying that back?
Being in debt can be very overwhelming. You are right to want to do something about your credit card debt. Rather than shifting your credit card debt into personal loan debt, I would simply recommend focusing on paying off your existing debt as quickly as possible. While debt consolidation is an option, there are several simple ways to get your debt under control.
First and most importantly, stop using your credit cards! It will be much harder to tackle your debt if you keep adding to it. Whether you just take them out of your wallet or cut them up to bits – stop using them until you have paid off what you owe.
Next, organize your debt. See how many cards you have. Write down the balances and the interest rates for each. Call those credit card companies with the highest rates to negotiate for a lower rate. Then consider combining your debts onto the card(s) with the lowest rate.
Finally, start paying down the card with the highest interest rate first. Put every spare cent toward your debt until you are debt free – hopefully well over the minimum monthly payment. Make paying off your credit card balances a top financial priority until they are gone
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