Personal loans for consolidating debt
Thankfully, for those with a good enough credit score, there are personal loan options available that can be much better than many other alternatives.
Using a personal loan for credit consolidation could substantially lower how much you pay in interest.
Personal loan rates are generally lower than credit card rates, so consolidating could save you hundreds, or even thousands, of dollars in interest payments.
Using a personal loan to reduce debt can have a few benefits.
The former involves you taking out an unsecured personal loan or balance transfer credit card to consolidate multiple credit accounts, while the latter involves you taking out a debt agreement, which is a form of bankruptcy.
It takes some bookkeeping to keep track of when to transfer the balances, but it keeps the interest rate low (often lower than what you could get at the bank). (that is assuming that the payoff was in 30 years which is most credit cards.) If you got a personal loan for 5 years at interest rate of around 11.5%, the total payments would be ,000 and it would only cost you 220/mo instead of 175/mo on the credit cards.. Keep stretching, Sarah S Compare: Find Out How Much a Personal Loan Might Save You in Interest Consolidating debts can be a lot like going on a liquid diet: you lose a lot of weight (read "debt") very quickly, but unless you change your habits, it will come right back once you start leading a "normal" life.
Free Resource: Request an invitation to join Dominate Your Debt—Laura’s private Facebook Group A personal loan is money you borrow to pay for just about anything, such as your wedding, a dream vacation, a new computer, medical bills, or to consolidate other debts.
There are two main types of personal loans: secured and unsecured.
Debt consolidation allows you to combine all your loans into one.
Essentially, it can give you a way to reduce your interest rates and fees, thereby giving you a way to get yourself out of debt.
Many cards will do that if you have been a good customer and make your payments on time.