Best Answer

Yes, consolidating your debts into one debt will lower your monthly payments. Now the bad news. When you lower your monthly payments you will be extending your debt over a longer period of time. The only time a debt consolidation will work, is if you do not charge and change your life style to a cash only basis.

User Avatar

Wiki User

โˆ™ 2006-04-02 00:15:19
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Will credit card consolidation lower your monthly payments?
Write your answer...
Related questions

Is it beneficial to do a balance transfer from one credit card to another?

It can be beneficial is you're able to get a lowered interest rate. Also, consolidating cards can improve your credit score and make the monthly payments much lower by consolidation.

How can one lower credit cards monthly payments?

The best way to lower one's monthly credit card payments is calling the card issuer and explaining why one wishes to lower the rate. Depending on the creditor they may extend the due date.

What are consolidation bills?

Consolidation bills are the new bills to be paid after one has gotten into a debt consolidation program. Before debt consolidation one might have five monthly payments on five different loans. After debt consolidation, those five payments are rolled into one payment which is usually lower than the total of the original five.

Does school loan consolidation have any effect on students with bad credit?

School loan consolidation and its effects on students with bad credit depends on the situation of the individual prior to pursuing loan consolidation. For students who are at risk of defaulting on their loans because of high monthly payments, an act that would most surely result in a bad credit score, consolidation could offer a lower month to month payment by spreading out the term of the loan further.

What are the benefits of debt relief consolidation?

Debt relief consolidation can lower your monthly payments and interest rates. It can allow you to put your finances back in order in a shorter amount of time than possible without it.

What is better debt settlement or consolidation?

Hello There,Honestly it depends on your financial situation. In nutshell1. If you are paying all your monthly payments on time, you think the interest rate is very high, You are VERY concerned about your credit scores, you dont mind paying the complete amount.... just want the interest rates to be lower and the monthly payments slightly down, cannot afford to talk to creditors or collectors on phone..... then Debt Consolidation is the option for you.2. If you CANNOT afford your monthly payments at all, you are late on payments, or you are somehow managing to pay the minimums... If your credit scores are not the top priority in your life, if you are considering to file for a bankruptcy, then opt for Debt Settlement.Thanks!This is not legal advice...... Answer: {| |- | The most common debt relief options are: debt consolidation and debt settlement. Debt consolidation has a minimal effect on your credit. Debt settlement will have a larger effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. |}

What are the advantages and disadvantages of consolidation?

Debt consolidation offers the advantage to lower monthly bills. Unfortunately, this can be disadvantageous because the debtors long-term debt could increase and extend the number of years the payments are made.

What are credit line payments?

Credit Line payments are payments that you make monthly on a line of credit that you have with your local bank. Many line of credits are based on the equity in your home, but they usually charge much lower rates than a traditional bank loan.

What company has the lowest interest credit cards?

Interest fees vary depending on the credit card company. Most companies apply interest based on your credit score and credit history. To obtain a lower interest rate, increase your monthly payments or make payments more frequently. The more payments you make the lower your interest will be.

What is a good interest rate for debt consolidation loan?

Generally interest rate for debt consolidation remains low. But it also depends on different companies and their policies. They also lower your credit card interest payment up to 60%. By consolidating your debt you are paying one monthly payment, which is lower than all the payments you are paying to creditors. The debt consolidation agency uses this payment to pay off the actual debt and the interest on the debt.

How do loans and debt consolidation affect credit score?

If you pay your bills on time and in full each month it will help your credit score rise. If you are late on payments and have outstanding payments then your credit score will become lower. Your credit score is an important thing to help you obtain loans such as car loans or a mortgage.

Why might an individual seek to perform private consolidation of his loans?

A loan consolidation simplifies loan repayment by combining all loans into one bill. It can also lower monthly payments, by giving up to 30 years to repay loans.

Will bill consolidation hurt your credit score?

If you are not able to pay your many student loans, your credit score will be hurt. If you consolidate, you have a better chance of having a lower monthly payment that you can handle. A lower score that you will be able to pay, which in turn will only help your credit score.

What is the truth about debt consolidation?

Debt consolidation is when you combine multiple debts into a single lower-interest payment. People consolidate debt to make payments more manageable and to secure a lower interest rate in the process. By lowering your interest rate, you might be able to pay off your debt faster--giving you flexibility for your monthly budget, helping you save for a large purchase, or letting you save for retirement. The truth about debt consolidation, though, is that it's not for everyone. Typically, only people with higher credit scores can get the lowest interest rates that make debt consolidation worth it. Before applying for a debt consolidation loan, be sure to consider your end goal: Do you want to lower monthly payments, save on interest, or pay off debt as fast as possible?

What is debt consolidation used for?

Debt consolidation can help an individual to pay off debts which are becoming unaffordable. During a debt consolidation programme all of the individuals previous debts are rolled into one debt which is paid off, usually at a lower interest rate, through smaller monthly payments.

What are the advantages of credit card consolidation?

Credit card consolidation consolidates all of ones debt. Credit consolidation makes it easier to pay off ones credit card debt with a lower interest rate than most credit card companies.

If you use a debt consolidation program or company to lower your monthly payments does this affect your credit?

I was interested in doing this; I asked random creditors first what the effect would be on obtaining future credit. They advised that it was better than bankruptcy by far, but that it told creditors that you had trouble managing your finances and you were a poor credit risk. When i was in debt I came across one company which helped me out to reduce my debt to 60%. It offered a variety of Christian consolidation programs and information for federal and private student loans also. Loan consolidation is a method for reducing student debt, credit card debt and loan payments. Consolidate your debt and reduce your monthly payments. Debt consolidation has a minimal effect on your credit. In most cases, you apply for a home refinance or debt consolidation loan and use the proceeds to pay your other debts. Although you will now have a single larger debt on your credit report, several small debts will be eliminated. There are other programs that are also referred to as "Debt Consolidation" programs, such as credit counseling and debt settlement, these will have some sort of adverse effect on your credit. Yes Companies offering "Debt Consolidation loan" services provide funds at a bit high rate of interest. So person you is facing bad credit will suffered a lot due to these loans. My advise borrow money from family members and others except applying for these services.

What are the advantages of financial consolidation?

One of the advantages of financial consolidation is that bill collection agencies will stop calling asking for money. Another advantage is that all payments will be made together usually at a lower rate than most of your credit cards.

Should you do a credit card consolidation?

Credit card consolidationCredit card consolidation allows you to make just one payment to the consolidator, instead of numerous smaller payments to many cards. Be cautious of credit card consolidation and other debt consolidation plans. These plans are not always the best option for your overall financial health. The consolidators may promise to lower your monthly payments; however, this action will extend the length of time it will take to pay off all your debts and ultimately you may pay more in finance charges.You may wish to consult a debt counseling service. Note that the use of debt counseling may appear on your credit report. Some creditors consider this activity negatively; some may consider it as a positive step.2: There are some situations in which a credit card consolidation is not necessary; and others where it can work to your advantage. I would suggest you study this subject a bit further, especially in reference to your own personal financial situation. You can check the link below to get more information.

Bringing Your Loans Into Reach With Debt Consolidation Loans Unsecured?

Debt consolidation loans are an excellent idea for people who want to get their debt under control. You could just waste away under the pressure of multiple credit cards or personal loans, or you could allow debt consolidation loans unsecured to help you get out from under the pile. These are nice loans because they provide you with instant relief. You no longer have to pay for a bunch of late fees and you can even save money on monthly payments. The lower rates and lower payments will help you over the long run and in the short-term, so give it a try.

What is a consolidation credit card?

A consolidation credit card is a credit card someone will pick to use as their sole credit card for everyday expenses which typically has the lowest interest rate or the best benefits such as cash back or miles rewards programs. Also, if someone has other credit cards with higher interest rates, they can often transfer balances and "consolidate" them onto a single credit card with a lower interest rate, therefore lowering their monthly payment, costs and in essence, making the card a "consolidation credit card".

What are the importance of consolidation?

The basic importance of consolidation is that it will discontinue any collection mediators harassing calls and provide you a strain free future to construct your credit for upcoming borrowing. Thus for easy repayment of the debts one should go for secured debt consolidation loans. Moreover by consolidating your debt you are paying one monthly payment, which is lower than all the payments you are paying to creditors. The debt consolidation agency uses this payment to pay off the actual debt and the interest on the debt.

Should you get a credit card to repair your credit?

You may do that in case of credit card consolidation wherein your credit card debts are consolidated into one credit card. However, if you can still negotiate to lower your interest rate and monthly payments; it is still better to pay off your debt with cash and not consolidation.

How does your credit rate effect your mortgage rate?

The higher your credit score, the lower your payments. The lower your credit score, the higher your payments. The analogy above shows how your credit rate affects you mortgage rate.

What is the Vanquish credit card terms of service?

The Vanquis credit card is a card for customers in the UK. Terms of service is that you must pay back what you borrow on it, in monthly payments and the interest rate on credit purchases is no lower that 19.94%.