If you’re suffocating under a mountain of debt, you might be wondering if consolidating debt could help your situation. Indeed, debt consolidation can be a great way to cut your interest expenses and reduce the number of bills you’re paying. It can also help you create a roadmap to get out of debt. But is a personal loan or balance transfer credit card better for debt consolidation?
If, like most of us, you overspent during the holidays and are now facing a holiday credit card debt hangover, you’re not alone. Some 25% of Americans say it will take them six months or more to pay off their post-holiday debt, according a poll of 1,000 U.S. adults released by Varo Money, a mobile banking start-up.
If the balance on your credit card keeps going up, you’re not alone. Americans are charging more than ever, with the average household credit card debt just over $8,000.¹ While paying down balances can be overwhelming due to high interest rates, balance transfer credit cards can not only make the process faster, but it can save you a lot of money if done correctly.
A balance transfer is one of the most important tools in managing credit today. With so many promotional offers, balance transfer credit cards, especially a 0% transfer, can give you a chance to pay down the principal and get closer to debt freedom.