The Best Debt Consolidation Loans help borrowers combine a large amount of high interest debt into a single payment.
What is the smartest way to consolidate debt?
Here’s what you need to know.
If you have credit card debt, you are not alone. The smartest way to pay off your credit card debt is to consolidate your credit card. When you consolidate your credit card debt, you combine your credit card debt with a lower interest rate on a single loan. With a lower interest rate, you can save money every month and pay off your debt faster.
There are many factors that drive a credit card debt consolidation decision, including:
• Credit card debt amount
• Interest rate
• Your credit score
• If you have a mortgage guarantee
The most common reason for a credit card is to pay off debt. Credit card consolidation can also be exchanged for “refinance credit cards.”
3 Ways to Consolidate Credit Card Debt
Here are 3 popular ways to secure your credit card debt:
1. Touch Home Heritage
3. Settle on a personal loan
4. Get a 0% APR credit card
1. Settle on a personal loan
A Personal loans for debt consolidation is an unsecured loan with a fixed monthly rate that helps you pay off your credit card.
• Your goal is to get an interest rate that is lower than the interest rate on your credit cards. Personal loans can start at less than 5.99%.
• With a fixed interest rate, your monthly payment never changes. By comparison, credit cards have variable interest rates that can change over time.
• Your credit score may increase because a personal loan is considered a installment loan.
• Personal loans can have a single creation fee, which is included in the loan UTB.
• To get a personal loan, you generally need good or excellent credit. With many lenders, you can apply directly online.
This credit card payment calculator shows you how much you can save when you combine your credit card debt with a personal loan.
2. Get a 0% APR credit card
• A 0% APR credit card is a useful tool for securing high interest credit card debt.
• A 0% APR credit card is available if you have good or excellent credit.
• You can transfer your credit card balance to a new 0% APR credit card.
• As its name implies, a 0% APR credit means that you do not accrue new interest on your credit card balance within a pre-determined period, such as 12 to 18 months.
• Some 0% APR credit cards also offer a 0% APR on new purchases over the same period of time.
• At the end of the 0% APR period, interest will accrue on your balance and regular monthly payments will begin.
• Some 0% APR credit cards charge a small balance transfer fee, but some 0% APR cards do not charge a balance transfer fee.
3. Take advantage of your home heritage
A third option is to take advantage of your home equity and then use the proceeds to pay off the High Interest Credit Consolidation Loan.
• In general, the interest rate on a home loan is lower than the interest rate on your credit card debt.
• To use this strategy, you must own a home and have enough assets in your home.
• You can use a home loan or a home line of credit.
• Unlike a personal loan, the loan is secured, So which means you can lose your home if you don’t repay the loan.