If you’re one of the many who carry various debts or a heavy overall debt load, consolidation is one of...
Published August 27, 20193 min read
If you’re one of the many who carry various debts or a heavy overall debt load, consolidation is one of the most consequential actions you can take to get control of your debt and attack it head on.
Consolidating credit card debt through a personal loan rolls your old debts into a single new debt. When used responsibly, it can help lift you out of your current debt and untether you from the high interest rate (such as a rising variable rate loan) you might be paying.
But don’t bite just yet.
You’d be smart to assess your credit score and current financial standing before even approaching the idea of getting a Personal Loan. If you have a strong enough credit score and can handle a fixed monthly payment, lenders (such as Laurel Road) can typically offer you a more attractive rate on a personal loan than other options. So, if you have a good score, a relatively low debt to income ratio, and your accounts are in good standing, you may be able to snag a new low interest rate that could save you in the long run. You might even improve your credit score—if you’re able to manage the debt responsibly.
You also may have seen the option to open a balance transfer credit card (alongside some seemingly unimaginable 0% interest rate offer) and been tempted to learn more. Here’s what you should consider when choosing between a personal loan and a balance transfer:
That about sums it up. Still unsure? Check out our guide to personal loans, here.
 APR stands for “annual percentage rate.” Rates include a 0.25% discount for making automatic payments from a bank account. Interest rates as of 08/27/2019. Rates are subject to change. A borrower’s actual eligibility and rate will be based on credit profile and other factors.
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