Cons of consolidating credit card debt

In fact, if your balance is high enough, you could never get out of debt by paying just the minimum payment.Although there could be benefits to taking out a personal loan to pay off credit cards, it also carries inherent risks.If you borrowed ,000, for example, you’d pay between 0 and 0 upfront.

cons of consolidating credit card debt-9cons of consolidating credit card debt-3

We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions.

The rates and terms listed on our website are estimates and are subject to change at any time. household has $6,662 in credit card debt and $37,172 in student loan debt. But despite the lower average balance, credit cards might pose a greater threat to your financial well-being than student loans.

If you have a solid credit history and high-interest credit card debt, a credit card consolidation loan could help you save money on interest and repay your debt sooner.

Compare rates by personal loan companies like So Fi, Citizens Bank, and Upstart to see how they stack up.

Personal loans will carry the biggest benefit if you’re currently paying high interest rates on multiple credit card accounts. Even a small change in your interest rate can make a big difference, especially if you have a lot of credit card debt.

Keep in mind that there’s no guarantee your interest rate will be lower on a personal loan. Moving debt from multiple credit cards to one credit card consolidation loan can simplify your debt payoff.

If you can qualify for a low interest rate, a low or nonexistent origination fee, and a manageable monthly payment, the math could be in your favor.

Use a credit card consolidation calculator to get the real numbers.

If you qualified for a three-year personal loan with 12.00% APR, your monthly payment would be 3, and you’d pay 3 in total interest over the life of the loan.

If, however, you kept the debt on the credit card and paid 3 per month, it’d take you close to three and a half years to pay off the debt, and you’d pay

Keep in mind that there’s no guarantee your interest rate will be lower on a personal loan. Moving debt from multiple credit cards to one credit card consolidation loan can simplify your debt payoff.If you can qualify for a low interest rate, a low or nonexistent origination fee, and a manageable monthly payment, the math could be in your favor.Use a credit card consolidation calculator to get the real numbers.If you qualified for a three-year personal loan with 12.00% APR, your monthly payment would be $133, and you’d pay $783 in total interest over the life of the loan.If, however, you kept the debt on the credit card and paid $133 per month, it’d take you close to three and a half years to pay off the debt, and you’d pay $1,359 in interest during that time.For example, you won’t have to worry about various payment dates and amounts.

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Keep in mind that there’s no guarantee your interest rate will be lower on a personal loan. Moving debt from multiple credit cards to one credit card consolidation loan can simplify your debt payoff.

If you can qualify for a low interest rate, a low or nonexistent origination fee, and a manageable monthly payment, the math could be in your favor.

Use a credit card consolidation calculator to get the real numbers.

If you qualified for a three-year personal loan with 12.00% APR, your monthly payment would be $133, and you’d pay $783 in total interest over the life of the loan.

If, however, you kept the debt on the credit card and paid $133 per month, it’d take you close to three and a half years to pay off the debt, and you’d pay $1,359 in interest during that time.

For example, you won’t have to worry about various payment dates and amounts.

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Keep in mind that there’s no guarantee your interest rate will be lower on a personal loan. Moving debt from multiple credit cards to one credit card consolidation loan can simplify your debt payoff.

If you can qualify for a low interest rate, a low or nonexistent origination fee, and a manageable monthly payment, the math could be in your favor.

Use a credit card consolidation calculator to get the real numbers.

If you qualified for a three-year personal loan with 12.00% APR, your monthly payment would be $133, and you’d pay $783 in total interest over the life of the loan.

,359 in interest during that time.

For example, you won’t have to worry about various payment dates and amounts.

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