How do you qualify for credit card debt consolidation?
There are a couple of debt consolidation options to consider, each with its own set of requirements for borrowers.
Debt consolidation can help individuals struggling with credit card debt by combining multiple balances into a single, more manageable loan. However, eligibility criteria vary depending on the type of consolidation.
For traditional debt consolidation loans, lenders usually require a good to excellent credit score (670 or higher), a debt-to-income ratio of 50% or less, stable income, a stable employment history, and a debt amount within their acceptable range. Secured loans may require collateral, such as home equity.
Debt consolidation programs offered by debt relief companies generally have more lenient requirements. Applicants typically need a minimum unsecured debt amount (around $7,500 to $10,000), demonstrate financial hardship, have some regular income, and possess a fair credit score. Note that secured debts like mortgages or auto loans do not qualify.
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