Low interest rate debt consolodating loan

17 Sep

But he concedes that it sometimes makes a lot of sense, especially if you’re swamped with high-interest payments and can swing a better rate with a loan.

Borrowing money is also personal, and the rates and terms available to you will depend a lot on your financial history.

It simplifies bill-paying and, if done correctly, should reduce monthly payments. Generally speaking, you would need a credit score above 700 to qualify for one of these cards.

The problem is that interest rates on debt consolidation loans vary wildly, ranging from as low as 5% to as high as 36%. The best borrowing rates go to consumers with credit scores 740 or higher.

But borrowing money is always a risky proposition, and even the best debt consolidation loan is no exception.

“You should start with the idea that the last thing you should do is borrow money to fix your problem,” says Bill Dallas, co-founder and CEO of Cloudvirga.

Now, let’s start reducing your debt and getting rid of those high interest rates.

They’re a popular financing option for homeowners who need additional cash.

Managing your debt is not as difficult as you may think. As a homeowner, there are several different options available to you. Is it near or higher than today’s cash-out refinance rates?Consumers using debt consolidation loans to pay off credit cards say they pay an average of 20% interest on those cards. The further down the scale you go, the higher the interest rate you will pay.Whatever method you choose in consolidating your debt needs to include an interest rate that is half, or less, of that. Anything below 660 is going to mean a high rate, though maybe not as high as the rate for credit cards.But debt consolidation is not always the best way to deal with debt issues, and it has drawbacks you should be aware of before you move forward with it.What’s more, there are several ways to go about consolidating debt, and depending on your circumstances, one method might make more sense for you than another.