Consoladating bills

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This is because, in doing so, you’re quickly reducing your credit utilization ratio.Your credit utilization ratio is the amount you owe on your credit cards relative to the total amount of credit you have available.By consolidating with a personal loan or 0% APR card, you’ll cut your finance charges dramatically.

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If you choose to consolidate with a personal loan, you’ll likely see a jump in your score within a few months.This means that consolidating your credit card debt with either a personal loan or a 0% APR card will cause a short-term dip.However, the long-term gains you’ll see in interest savings and your credit score make this move worthwhile for most people.As of July 2014, the average credit card interest rate is hovering around 15%.If you’re carrying debt on several cards with this interest rate, you might be shelling out hundreds every month in interest.

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