Definition of consolidating credit card debt
If you plan to repay your credit card debt within 2 to 7 years and can receive a lower interest rate than your current credit card interest rate, a personal loan is a smart strategy to save interest costs. You can apply online for a personal loan, and can start by comparing lenders and interest rates. Lenders will evaluate your financial and credit profile, including your credit score and income, to determine your interest rate.
Also, your personal loan can be funded within days, so the process is relatively quick.
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Here's what you need to know to pay off your credit card debt faster.
You can consolidate your credit card debt with a personal loan, which is also known as a credit card consolidation loan.
With a personal loan, you can consolidate your existing credit card debt into an unsecured personal loan that is typically repayable in 2 to 7 years.
With a strong credit profile, if you can consolidate your credit card debt with a personal loan at a 7% interest rate and three-year repayment term, you will save ,634 and pay off your credit card debt earlier.
And other loan companies will hook you with a low interest rate then inflate the interest rate over time, leaving you with more debt! Your goal should be to get out of debt as fast as you can!
Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates. But the truth is debt consolidation loans and debt settlement companies suck even more. In fact, you end up paying more and staying in debt longer because of so-called consolidation.