Credit Card Debt Consolidation
Debt consolidation loans are designed to help pay off bills and steadily take down debt. These types of loans are very appealing because it is easier to make one payment to one creditor instead of making many payments at various interest rates to many creditors. You also must keep in mind that you cannot just borrow your way out of debt. Before you decide that this type of loan is right for you, you should do a quick checkup of your current financial situation
If more than 20% of your disposable income is going towards paying off credit card debts, then you should take action by consolidating you debt. A debt consolidation loan can help you tremendously, but only if it’s a good deal financially. When evaluating whether a debt consolidation loan is a good deal financially, consumers should ask themselves a few questions
What is the interest rate of the new card? The interest rate should be less than what you are currently paying on your debt.
What is the length and terms of the loan? Debt consolidation loans can often offer attractive monthly payments, but will extending the loan for a number of years. It is wise to calculate how much your total payments will be and ask for a breakdown of principal and interest.
Am I swapping unsecured debt for secured debt? For example, When you receive a home equity loan, you are taking out a loan against the equity of your own home. The advantage of this type of loan is that the interest charges are usually tax deductible. Keep in mind that you are putting your home at risk for foreclosure if you are unable to make the payments.
Am I willing to make lifestyle changes? It is foolish to get a debt consolidation loan only to run up your credit cards again in a year or two. The goal is to get out of debt and stay out. This may require some lifestyle changes, but in the end you will reap the benefits.
If you decide that you would like to try and consolidate your credit card debt, Premier Savings will guide you through every step of the way. Once you sign up with Premier Savings, we will provide you with the tools that you need to get a new credit card with a consistently low interest Rate. You can transfer your high rate balances over to the new card with the lower rate and see a substantial interest savings. Premier Savings will also provide you with the tools that you need to help you manage your money and your credit effectively.