Consolidating debt on
That’s an option if you’re looking to consolidate your credit card debt. If you can’t pay off most or all of your debt by the time the introductory rate expires, you’ll be back to paying high interest rates again.The amount of debt you transfer also may be capped by your credit limit.If you’re struggling with high interest rates on credit cards and loans while barely making a dent in your debt each month, it may be time to consider debt consolidation.That’s a strategy where you roll multiple debts into one monthly payment at a lower interest rate to pay down your debt more quickly.If you want to get your debt paid off more quickly, you might consider getting a personal loan from a lender or borrowing money from friends or family.Your credit score and how quickly you need the money will determine which option is more viable.Before you consolidate debt with a balance transfer, make sure you’ll actually be saving money with the transfer.
“I would see if you can get some comparable rates with an unsecured loan.”Secured loans tend to have lower interest rates than credit cards, but the big risk is that you could lose your house or car if you can’t make the payments. You’ve probably gotten one of these offers in the mail — a credit card with a 0% introductory rate that lets you transfer balances from other credit cards.Debt consolidation is specific to one type of debt: unsecured debt.That means debt like credit card balances, medical bills and student loans that aren’t tied to collateral such as your house or car.These organizations offer education on consumer credit, budgeting and debt management, and can put you on a debt management plan (DMP).With a DMP, a credit counselor negotiates with your creditors to lower your interest rates and/or fees and penalties.