Credit Card Loan VS. Debt Relief Programs

Credit Card Loans: (Synonym: Credit Card Consolidation Loan) – using a loan to pay off your existing credit card balances can reduce your overall interest rates, but only if the interest rate on the new loan is lower than the average interest rate on your existing accounts.  

To get a low-interest loan to pay off credit card debt a person’s FICO score needs to be above 700. If your FICO score is below 700, you will not get approved for a consolidation loan.

On the flipside, using a loan to pay off existing credit card debt, is merely swapping debt from one account to another. You still have the debt and must pay the entire balance back.

What we are about to show you is a solution to your financial problems, not just a temporary fix.

You would be better off – eliminating all of your interest and reducing the balance. By completely removing your interest rates and lowering the balances, that’s how you can put extra dollars in your pocket!

Before you get a credit card loan, check out the following debt relief options. By using one of these debt relief programs below, you can eliminate all of the interest, reduce the balances on each account and keep more dollars in your wallet! 

Credit Card Loans & Alternative Options

 

 

Which is better; a personal loan or a home equity line of credit?

A home equity line of credit can be used to pay off credit cards and for anything that you want to use it for. You are not required to use a home equity line of credit to fix up your house.

What’s great about a home equity line of credit, is the fact that they usually come with lower interest rates compared to the interest rate on a personal loan from a bank.

Therefore, using a home equity line of credit to consolidate your credit card debt is a much better option than getting a personal loan.

 

Using a Credit Card to Consolidate Existing Credit Card Debts

Here’s when using a credit card to consolidate other credit card debts can be a good idea …

Some credit card companies are offering “zero percent” interest for the first 18 months, as an introductory rate.

You could transfer your other credit card balances onto the new card that has a zero percent interest rate and as long as you pay the balance off inside 18-months – you can escape the high interest that you are currently having to pay on the existing cards.

Try this credit card calculator to see all of your options.

 

Call 866-376-9846 to sign up for a debt relief program that can eliminate all of your interest and reduce the balances. 

 

With an unsecured personal loan, you can pay off your high-interest credit card debt and consolidate it into a single monthly payment with a fixed, low rate. However, now you are required to pay back the full amount of what is owed, plus interest, just less than what you may be paying now.

Downsides to Consider Before Getting a Credit Card Loan

  • Watch out for hidden fees with loans! Look at the positives and the negatives with whatever option you decide on.
  • Paying back a loan may improve your credit score. However, taking out more debt, to pay off debt, can be counterproductive, and especially if you are barely able to afford minimum payments.
  • Are you prepared to pay back a loan over 5-10 years, that’s the average payback period on a credit card debt consolidation loan.
  • Can you afford to pay minimum payments or more? Credit card loans will give you a monthly payment of around the same as what you are currently paying towards your existing credit cards.

Before you get a credit card loan, learn about all of your debt relief options; including, debt settlement, debt consolidation, debt validation and consumer credit counseling.

If your goal is to save money, there are much better options for you to turn to.

If you use a zero percent card to pay off existing high-interest credit card debt and you can afford the monthly payment on the new card, comfortably – in this case, using a credit card loan can be a beneficial route to take.

Step one: Figure out your goals and budget.

Step two: Explore all options, and then weigh the pros and cons of each option in order to find the best path for your situation.