Fortunately, applying online usually doesn’t take more than a few minutes.
“Most people do not like to pull into a parking lot to go and stand in line to sign some papers,” said Bradford. The easier it is for customers to consolidate debt and refinance, the more likely they’ll be to take advantage of its benefits.
The best thing about these credit card debt consolidation strategies is that they can potentially help your credit rating, as you will be paying down your debt more efficiently, and you won’t have all those maxed out credit cards anymore.
If you're ready to take control of your credit card debt, one thing is certain: you're not alone.
This sometimes results in savings that may help a responsible borrower pay back credit card debt faster.
Personal loans and credit card balance transfers are two ways that consumers can consolidate credit card debt. An unsecured loan is not supported by an asset such as a house or car.
There’s also the savings argument, which becomes a no-brainer once you run the numbers.
The average American household carrying a credit card balance has over ,000 in debt, but you sure wouldn’t know it.
That means you’ll pay less each month to just one lender instead of many.
While it’s not as drastic as debt settlement or debt management, debt consolidation has its own pitfalls that you need to be aware of.
Refinancing debt is also a smart strategy, especially for those in the post-grad plateau— the early stages of a promising career—with plenty of raises just around the corner.
With fixed-rate credit cards becoming more difficult to find, and the average annual percentage rate (APR) for variable-rate credit cards just over 16% as of this writing, you could save thousands of dollars by refinancing credit card debt with a low-interest personal loan.
A 2015 Nerd Wallet study reports that the average U. credit card debt totals ,675, and that doesn't include other types of consumer debts such as auto loans.