Debt Consolidation Loan or Balance Transfer: Which is Best?
Debt Consolidation Loan or Balance Transfer: Which is Best? Paying off debt is never easy. But a lower interest rate and smaller payments can lighten your load. When it comes to common consumer debts like credit cards and personal loans, two of the most popular ways to lower your rate include balance transfers and debt consolidation loans. So, which option is best? They both have advantages and disadvantages, but you can make an educated decision once you look at the fees to borrow and how your debt is set up currently. Credit Card Balance Transfers Transferring a balance using a credit card is easy, and ideally you can pay 0% interest on your debt (at least for a limited time). That helps stop the bleeding: your interest costs disappear, and 100% of each payment goes towards reducing your loan balance. Credit card balance transfers are most attractive when you know you will pay off debt quickly. However, you’ll need to pay attention...