Consolidating and eliminating credit card debt
Here’s what you need to know if you are considering these options for consolidation: Transferring different debt balances to one credit card account Many credit card companies offer zero-percent or low-interest balance transfers to allow you to consolidate your debt on one account.This will allow you to make one payment and sometimes will result in lower payments.
Based on responses from 14,827 borrowers in a survey of 76,365 randomly selected borrowers conducted from 1/1/16 - 10/1/16.Warning: Many zero-percent or low-interest credit card offers only last for a limited amount of time.After that, the interest rate on your new credit card may rise, increasing your payment amount.Estimate your monthly payment with our personal loan calculator.Get an instant rate quote and see the offers you qualify for, with no need to ever visit a branch.Best APR is available to borrowers with excellent credit.
Consolidation means that your various debts, whether they are credit card bills or loan payments, are rolled into one monthly payment.
Also, with many of these cards, if you’re late on a payment the credit card company can increase your interest rate.
Many zero-percent or low-interest balance transfers are subject to a fee (sometimes called a “balance transfer fee”) The fee is usually a certain percentage of the amount you transfer.
Borrowers who used a personal loan via Lending Club to pay off high interest credit cards or consolidate debt report in a survey that the interest rate on their loan was an average of 30% lower than they were paying on their outstanding debt or credit cards.
With fixed, low interest rates and monthly payments, the amount you pay will never increase, giving you a clear path to being debt free.
Borrowers who received a loan to consolidate existing debt or pay off their credit card balance reported that the interest rate on outstanding debt or credit cards was 21% and average interest rate on loans via Lending Club is 14.6%.