Consolidating credit card debt resources Adult chat with men no registration
Since credit card interest is imposed on the current unpaid balance every month, payments can be high, especially at interest rates that often exceed 20% or 25%.
Depending on the rate at which the interest compounds, that can become a serious drain on a monthly basis.
Here are points to consider before seeking a consolidation loan.
Lower, fixed interest rates and an extended repayment period are the big pluses.
After that, the interest rate jumps to whatever the card typically charges, which usually is somewhere between 16%-20%. The second option, a personal loan, is unsecured and might be harder to obtain.
To make this strategy work, the borrower must be able to pay off the card balance during the no-interest grace period. Since unsecured loans pose greater risks to lenders than loans that use collateral, they generally come with higher interest rates, though seldom as high as rates on unpaid credit card balances.