Debt consolidating loan com
If you plan to repay your debt quickly, a balance transfer card can allow you to avoid high interest charges.
However, balance transfer cards do come with a balance transfer fee.
The amount will vary from person to person, and you’ll usually need to repay the loan within five years.
If you have a life insurance policy large enough to cover your debts, that could be an option as well.
However, this strategy comes with drawbacks — such as decreasing the financial support your loved ones would receive if something happens to you — so it’s usually not worth considering as a first option.
The debt snowball method isn’t a way to consolidate your debt, but rather a strategy for attacking each payment separately.
Here’s when it’s worth considering: A personal loan is a loan that isn’t backed by collateral.
If you’re not sure whether or not you qualify for a personal loan, you can read our guide on how to know if you’re a good candidate for one.
Once the introductory period ends, you’ll begin paying interest on your remaining balance.
Ultimately, it depends on your financial situation.
Your credit score, homeownership status and monthly income play a major role in choosing your consolidation option.
Luckily, that’s where our debt consolidation calculator can help; the tool will help you compare each strategy and figure out which one is right for you.
With this strategy, you organize your debts in order of interest rate — from highest to lowest — then start by paying off the debt with the highest rate.