Typically, as most lenders have a
Typically, as most lenders have a $1,000 to $3,000 loan minimum, personal loans are a viable option only if you have several thousand dollars of debt.In other words, using a personal loan to pay off credit card debt could help you save money on interest and potentially get out of debt faster.The average credit card interest rate is close to 15 percent, although if you have excellent credit, you may qualify for a lower interest rate.A personal loan may be an enticing option if you have a lot of credit card debt, as it could allow you to pay off your high-interest credit card debt and then pay off the personal loan at a lower rate.Read the other posts in the series to get all the info you need to make intelligent decisions about your student loans.Student loans are the ultimate double-edged swords.As your debts are paid off with the money you get from the new loan or credit card, your utilization rate - the amount of debt you actually have relative to your total credit- will go down.For example, if you have a credit card with a $5,000 limit and you have the card maxed out before the consolidation, it is at 100% utilization - not good.
Typically, as most lenders have a $1,000 to $3,000 loan minimum, personal loans are a viable option only if you have several thousand dollars of debt.
,000 to ,000 loan minimum, personal loans are a viable option only if you have several thousand dollars of debt.
In other words, the better your score, the better your rate.
Professional debt consolidation companies provide loans after speaking with your lenders and confirming payoff amounts with them.
Usually, the accounts included in the consolidation will be closed or canceled so that you can no longer access them.
This is unlike secured loans like mortgages or a car loans, where you typically use your home or car as security for repayment of your loan - which your lender can take if you don't make your payments.
While personal loans may have higher interest rates than secured loans, they often offer lower interest rates than credit cards -- some as low as six percent, though you typically will only qualify for rates this low if you have excellent credit.