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How to consolidate credit card debt
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If you’re dealing with mounting credit card debt, you may be looking for ways to pay it off quickly. After all, today’s high interest rate environment means your minimum payments are likely higher now than they have been in the past. But it’s important to understand that when you make the minimum payments, most of your payment goes toward interest charges rather than the principal balance.
The good news is that debt consolidation can make your debts more manageable. When you consolidate your credit card debts, you pay off multiple debts with a loan that typically has a lower interest rate. By doing so, you’ll save money on interest while simplifying the payoff process. But how do you consolidate credit card debt?
Find out how much money you could save with a debt relief service today.
How to consolidate credit card debt
There are multiple ways to consolidate credit card debt. Some of the most popular debt consolidation options include:
Use a debt relief service
Debt relief services typically negotiate lower interest rates or principal balances with your lenders. That means when you take advantage of these services, you could save money while expediting the repayment process.
Many of the services offered by debt relief companies don’t involve using a new loan to pay off high-interest debts. However, they can simplify the payoff process, as you typically send one monthly payment to your debt relief provider to address all of your credit card balances.
With debt management, your provider uses your monthly payment to pay your lenders on your behalf. With debt forgiveness, the money from your monthly payments is held in a special-purpose savings account until there’s enough saved up to pay out for credit card settlements. In either case, though, these options are for those who are struggling to make ends meet, so you won’t need a strong credit score and application to qualify.
And, it’s worth noting that many of the same debt relief services also offer debt consolidation loan programs. However, these and other types of debt consolidation loans typically come with higher credit and borrower requirements, so they may not be an option for everyone who enrolls in a debt relief service.
Use a debt relief service to help consolidate your debts now.
Take out a debt consolidation loan
Debt consolidation loans are a type of loan used to pay off credit card debt. By using a debt consolidation loan to pay off multiple credit card debts, you’re streamlining your payments into one loan with one monthly payment and a lower interest rate.
However, these loans can be harder to qualify for, so they’re usually best for those with good credit and a strong borrower profile. If your credit is damaged or your debt-to-income ratio is less than ideal, a debt consolidation loan may not come with a lower rate — or you may be declined altogether.
But if you can meet the higher lending requirements, a debt consolidation loan may be worth considering. According to the Federal Reserve, the average interest rate on a 24-month personal loan was 12.35% as of November 2023. So by using the right personal loan to consolidate your debt, the savings could be significant compared to the average 21.47% rate offered on credit cards.
Borrow from your home equity
If you own your home, your equity may be your key to paying off your credit card debt. The average homeowner currently has about $299,000 in home equity — about $193,000 of which is tappable. And, home equity loans usually come with competitive interest rates since they’re secured by your home, which can make them a smart choice for debt consolidation.
Right now, the average home equity loan rate is 8.59%. The average home equity line of credit (HELOC) rate is just slightly higher at 8.99%. These loans typically require a strong borrower profile for approval but can be a smart option if you want a lower interest rate and monthly payment.
If you’re approved for a home equity loan, you may be able to secure a loan term of up to 20 years (or up to 30 years with a HELOC). It’s important to note, though, that the longer the loan term is, the more interest you’ll pay over the life of the loan.
The bottom line
There’s more than one way to consolidate your high-interest credit card debt. If you’re struggling to make your minimum payments or don’t have the best borrowing qualifications, it could make sense to reach out to a debt relief company for help. If you have good credit and a strong borrower profile, you may want to consider using a debt consolidation loan or home equity loan to consolidate your credit card debt instead. No matter what, though, it’s typically best to act quickly. The longer the credit card interest accrues, the higher your balances will be.
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Charges against Georgia high school shooter’s dad echo precedent set in historic Crumbley case
(CBS DETROIT) – The father of the 14-year-old accused of killing two students and two teachers at a Georgia high school was charged in connection with the shooting. His charges follow in the wake of the convictions of two Michigan parents after a school shooting carried out by their child.
Colin Gray, 54, has been charged with four counts of involuntary manslaughter, two counts of second-degree murder and eight counts of cruelty to children, in the shooting that happened at Apalachee High School Wednesday morning. The 14-year-old suspect was charged with four counts of felony murder.
The Georgia Bureau of Investigation Director Chris Hosey said the charges come from Colin Gray “knowingly allowing his son to possess a weapon.” The father was in court Friday morning, where a judge told him he could face up to 180 years in prison if convicted on all counts.
The father of the shooting suspect being charged comes after the historic case of James and Jennifer Crumbley, who were sentenced to 10 to 15 years in prison for involuntary manslaughter, becoming the first parents in the U.S. to be convicted in a mass school shooting carried out by their child.
James and Jennifer Crumbley were held responsible for their roles in the Oxford High School shooting that killed four students — Justin Shilling, Madisyn Baldwin, Tate Myre and Hana St. Juliana — and injured seven other people on Nov. 30, 2021.
During their trials, the prosecution argued that the Crumbley parents ignored their son’s mental health needs and purchased the gun that he used in the shooting.
Oakland County Prosecutor Karen McDonald, the prosecutor in the Crumbley case who set the precedent for prosecuting parents in mass school shootings, reacted to the news that the Georgia suspect’s father was charged in an interview with CNN Thursday.
“My reaction is rage because you know it the prosecution of the Crumbleys was never, ever meant to be a floodgate of charges against parents, because it was such an egregious set of facts,” said McDonald. “I share the emotions of the entire country that, even after that well-publicized case, we’re still here.”
Former federal prosecutor and defense attorney Rick Convertino, appearing on CBS News Detroit to discuss the shooting at Apalachee before it was revealed that the shooter’s father had been charged, noted the differences between the gun laws in Georgia and Michigan and claimed “gun culture” is different in Georgia than it is in Michigan. Georgia passed a law in 2022 that allowed residents to carry without a permit, which means adults do not need to have a permit to buy or carry buy rifles, shotguns or handguns.
One of the most significant differences, according to Convertino, is with the gun storage laws. “In Georgia, there’s no specific child-preventive act that requires the guns to be secured and safe from unrestricted children to have access to it,” said Convertino.
There is also no gun lock law in Georgia or any “red flag” laws that allow for the removal of guns from someone who is determined to be a risk for harming themselves or other people. Georgia’s laws are among the least strict in the nation, according to a CBS News analysis.
“We’ve seen this 14-year-old shooter had made threats a year before. The father apparently said to the police that he bought the AR-style weapon for a Christmas present for his minor child,” Kris Brown, president of gun control advocacy organization Brady, told CBS News’ Natalie Brand, drawing a parallel to the Crumbley case.
Brown said Colin Gray’s arrest and the convictions of James and Jennifer Crumbley send a message.
“If you have a firearm in the home, you better safely store that firearm, or you will have a risk if something happens of being criminally charged,” she said.
Michigan’s new gun safety laws went into effect in February, a little over two years after the Oxford High School shooting.
