Credit Card Loans: (Synonym: Credit Card Consolidation Loan) – this can be a quick method of paying off credit card debt, but not if the interest rate on the loan is higher than the average interest rate on your existing credit cards. (based on the average)
However, to get a low-interest credit card consolidation loan, a person must have a high credit score and low debt to income ratio. With a low credit score you will not get approved for a consolidation loan, so start by looking at the following infographic, and learn all of your debt relief options.
Want to become debt-free and say goodbye to all of your credit card debt? Call 866-376-9846 to get a quote or start by filling out the form below.
Looking to reduce your monthly payments without a loan? Hardship programs can resolve your debt, without needing a loan.
Want to reduce your monthly payments? 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. 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, or even 4-5 years?
A credit card consolidation loan can be an amazing option if the circumstances are right. If you can afford the payments comfortably, and your interest rate is low, this can be a useful credit card relief option to keep your credit score in good shape assuming it already is in good condition.
If you have a hardship, give us a call at Golden Financial Services. We can go over all of your options. You can then make an informed decision about whether or not a credit card consolidation loan is right for you.