What is credit card debt consolidation? Is it really a solution for people in debt?

Check for sure! Qualifications of those who can consolidate credit card debt
- Age and Nationality: Applicant must be of Thai nationality. In general, you must be at least 20 years of age and when including the installment period. Total age must not exceed 60-65 years, which may vary by bank.
- Minimum Income: Banks use income as an important criterion for analyzing debt repayment ability. Normally, the minimum income for full-time employees is set at 15,000 - 20,000 baht or more, and some institutions may set a higher threshold for business owners or self-employed persons.
- Year of employment: To confirm that the applicant has a stable and continuous income. The bank will check the current working period. Regular employees usually must have a minimum of 4-6 months of service and have completed a probationary period.
- Credit history: Applicants should not have a history of overdue payments with other financial institutions or have bad credit bureau information. Because the bank will use this information as an important part in approval consideration.

How can I consolidate credit card debt?

1. Applying for a personal loan to consolidate debt
2. Credit card debt transfer (Balance Transfer)
3. Debt Consolidation with Secured Loans

Open the list of documents that must be prepared before submitting an application.
- Identity verification document Which includes a copy of your national ID card, a copy of your house registration. (Some financial institutions may not require this But it won't hurt to prepare it) and a copy of the name-surname change form (if any).
- Copy of ID card
- Copy of house registration (Some financial institutions may not require this But there's no harm in being prepared.)
- Copy of name-surname change certificate (if any)- Documents showing income (This part is very important because the bank will use it to evaluate our ability to repay debt.) For full-time employees: Most recent payslip. Or a salary certificate (original) that is no more than 2-3 months old and an account statement (Statement) for the past 3-6 months. For business owners/self-employed: A copy of the registration certificate. or commercial registration (in case of registration) and business or personal account statements for the past 6-12 months
- For full-time employees: latest payslip Or a salary certificate (original) that is no more than 2-3 months old and an account statement (Statement) for the past 3-6 months.
- For business owners/self-employed: Copy of registration certificate or commercial registration (in case of registration) and business or personal account statements for the past 6-12 months
- Document showing debt burden (So ​​that the bank knows the total amount of credit card debt that we want to consolidate into one place) Copy of credit card invoice or a summary of the personal loan account balance of each financial institution for the most recent month
- Copy of credit card invoice or a summary of the personal loan account balance of each financial institution for the most recent month

Advantages-disadvantages What are the benefits of credit card debt consolidation?

Advantages of Consolidating Credit Card Debt
- Reduce monthly installments and save on interest: The most obvious advantage is getting a lower interest rate. Previously had to pay interest on many credit cards that could be as high as 16% per year when consolidating debt into one lump sum with a personal loan. You may get a lower interest rate. This reduces the monthly installment amount and saves a lot on interest costs.
- Easy to manage, easier to pay bills: Don't worry about forgetting to pay bills or being confused about the total amount of each card. Because debt consolidation will leave you with only one bill, one balance, and a fixed date. Makes financial management easier and more convenient.
- There is an opportunity to improve your credit score: If you consistently pay off your combined debts on time. This will have a positive impact on your credit history in the long run. Because it shows better financial discipline.- Have a clear repayment schedule: Debt consolidation often comes with a definite repayment plan. This lets you know how much you have to pay each month and when you will be out of debt. Makes it easier to plan your future finances.

Disadvantages and things to be careful of
- Longer installment period: Even the monthly installment amount will be reduced. But sometimes you may have to exchange for a longer repayment period. Which, when calculated, may cause you to pay higher total interest than before. If you do not choose the right plan
- There may be hidden fees: before deciding Don't forget to check the terms and conditions, such as loan administration fees. or fines in case of premature closing of debt Because these expenses may make debt consolidation not worth it as you think.
- Risk of creating new debt: Debt consolidation does not solve the root cause of spending behavior. Some people have already consolidated their old credit card debt. They may go back to using the same credit card and create new debt. Making the financial situation worse than before
- May Not Be Approved: Not everyone is always able to consolidate debt. Financial institutions will consider your income, debt and credit history. If the qualifications do not meet the criteria You may not be approved for the loan.

Credit card debt included Don't forget to plan your new finances too!
- Understand your new debt: Know your new debt in detail. including the amount that must be paid per installment, the payment due date and interest rates Paying debts on time and in full every month. is the first main mission that must be accomplished.
- Create an income-expense budget: Try recording your daily expenses in detail. To give a clear picture of what our money disappeared to. This method will help you cut out unnecessary expenses. And have more money left for paying off debt and saving more.
- Review credit card use: for the same credit card that used to create debt. It might be time to seriously reconsider its use. Try keeping only one or two cards you really need for emergencies. and change new behavior The goal is to repay the full amount each time when due. To prevent accumulated interest- Start building an emergency savings fund: Nothing is more important than having an emergency fund. Gradually start saving this money to at least 3-6 times your monthly expenses. This money will be like a good layer of protection. That will help you not have to rely on debt again when unexpected events occur.