Tips on refinancing and consolidating debt
It’s wise not to agree to any type of refinance loan until you understand exactly what you are getting.
Debt consolidation typically involves a debt consolidation company that offers to lower your payments and your interest rates on your debt so that you can get your debt paid off more quickly.
There are, however, things to consider when it comes to balance transfers.
It’s important to keep in mind that there are often balance transfer fees that come along with such cards, and often times your APR increases after a predetermined amount of time.
It’s a smart idea to start by writing down all of your debt obligations, including each loan or credit card balance, who it’s payable to, the minimum payment and the current interest rate.
From there you can move on to making a plan to get your debt paid off as soon as possible. Here’s what you need to know before you agree to consolidate or refinance your credit card or other consumer debt.
Some even offer zero percent APR, so it’s important to research what’s out there before making a decision.
If it seems like the right way to go, debt consolidation can be an excellent way to relieve yourself of the pressures of credit card debt in a timely manner while also helping your credit score.
When you’ve decided it’s time to pay off your consumer debt once and for all, planning is key.
You can get a debt consolidation loan from a bank, credit union or online lender, but it’s important to look out for the best interest rates or else it ultimately defeats the purpose of consolidating.
Online lenders are a great option for those with lower credit scores.