Perhaps multitalented entertainer Justin Timberlake — the star of the halftime show at this year’s Super Bowl — worried at one time about credit card debt. It’s really doubtful that he does today.
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?
Many people turn to personal loans when they need a fresh injection of cash. Such loans can be used to fund a home repair, or to pay off credit card debt. But it is easy to fall behind on personal loan payments. And if that happens, you might end up in a tough spot, says Michael Bovee, founder of Consumer Recovery Network, an organization that helps people manage their debt.
Debt consolidation allows you to roll multiple account balances into a single debt. That leaves you with one big payment instead of multiple. The hope is that it will make your debt easier to manage, and help you to pay off your debt more quickly. But those are just a couple of the potential upsides. In fact, there are probably more benefits of debt consolidation than you realize.
If you are deep in debt and desperate for a lower interest rate on borrowed money, consider using a personal loan to consolidate your obligations.
If you’re shopping for the best personal loans, you have plenty of options. There are a number of lenders offering competitive APRs, low fees, high loan limits and flexible loan terms.
Whether you went wild with holiday shopping or were hit with unexpected medical bills, it can seem scary to conquer the mountain of debt you’ve accumulated. You’re not alone, of course: Millions of Americans share your struggle. Fortunately, debt consolidation loans can help you can scale that mountain of debt.
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.
After the holidays, the debt you’ve built up to buy gifts can feel heavier than Santa’s bag of toys. However, you might be able to lighten the load by consolidating your holiday debt.
There are a wide range of reasons to get a personal loan. That’s because they are one of the most versatile financial products, designed to help borrowers with diverse needs.