Lower credit card debt consolidating
401(k) loans typically are due in five years, unless you lose your job or quit, in which case they’re due in 60 days.
When you’re juggling multiple credit cards, managing them all like a pro while paying down the balances can be a major challenge.
Most will give you an estimated rate without a “hard inquiry” on your credit, unlike many banks and credit unions.
For online lenders, the lowest rates go to those with the best credit; rates top out at 36%.
More so, consolidation may reduce the finance fees you’re currently paying and sometimes even increase your credit rating.
But before you say, “sign me up,” get to know the different methods of debt consolidation, and how they may — or may not — help you with your financial and credit goals.
Consolidation works best when your ultimate goal is to pay off debt.
A home equity loan is a lump sum loan with a fixed interest rate, while a line of credit works like a credit card with a variable interest rate.Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee.Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.You can use that money to pay off your credit cards or other debts.A HELOC typically requires interest-only payments during what’s known as the draw period, which can range from five to 20 years but is typically 10 years.