Here’s a better approach to paying off credit card debt
You want to know how to get rid of your credit card debt more effectively?
Here’s everything you need to know visit consolidationnow website
Credit Card Consolidation – Paying Off Credit Card Debt
Americans owe $1,000 billion in credit cards debt.
In the case of credit card debt, the interest rate may be higher that the interest rates on your student loans, mortgage, and car loan. combined. Consolidating credit card debt is the best strategy before you drown under interest.
With a personal loan, you can consolidate your credit cards debt. Also known under the credit card consolidation loans acronym. Personal loans allow you to consolidate your credit card debt into an unsecured personal mortgage that can be repaid in as little as 2-7 years. Personal loans are available from $ 1,000 to $100,000 depending on the lender.
Why consolidate Credit Card Debt
Consolidating credit cards debt has many benefits.
- Lower your interest rate
- Monthly payments that are predictable
- Application process is simple
Lower your interest rate
Some credit cards carry APRs up to 10-25%. This could mean that your interest rate may be higher than the average of all your consumer debt. It can sometimes be difficult to pay your credit card debt due to high interest costs. Personal loan rates currently start at 5.47%, depending upon your credit score.
Predictable monthly payment
Credit card debt has variable interest rates. This means that the interest rate could change over the term of your credit card debt. Personal loans, however, have a fixed rate. This means that you’ll pay the same monthly amount regardless of changes in interest rate, which is more predictable.
Application process is simple
Apply online for personal loans and begin comparing interest rates and lenders. Lenders will review your financial profile and assess your income to determine your interest rate. You may find consolidating credit card debt financially more beneficial if the interest rate you receive is lower than the credit card’s interest rate. You can get your personal loan funded in as little as a few days.
Read more: How do personal loans work?
Credit Card Debt Consolidation: How Much Money can I Save?
Here are some ways you can save money on credit card debt consolidation.
Consider that you have $10,000 in credit card debt. At an 18% rate, you pay $ 250 each month. A strong credit history can help you consolidate credit card debt using a personal loan. The interest rate is 7% with a 5-year repayment term. You could save $ 52 each monthly and $ 3,369 total.
This calculator will calculate the amount you can save on your credit cards debt by consolidating it.