Lower credit card debt consolidating

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If the average interest rate on your credit cards is higher than the loan’s rate, you will save money, though there is often an upfront fee of a few percentage points to take the debt on.

You’ll repay the debt over a certain number of years (usually from one to five years) with fixed payments.

» MORE: Nerd Wallet’s best balance transfer credit cards Pros: Back to top You can use an unsecured personal loan from your local bank or credit union or an online lender to consolidate credit card or other types of debt.

The loan should give you a lower interest rate on your debt or help you pay it off faster.

» MORE: Pre-qualify on Nerd Wallet and get a personalized rate Pros: Back to top If you’re a homeowner, you can take out a loan or line of credit on the equity in your home.

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.

That means you’ll need to pay more than the minimum payment due to reduce the principal and make a dent in your overall debt.

Since both types of loans are secured by your house, you could lose it if you don’t keep up with payments.

Once the debt from your credit card companies is shifted over to the new lender, the balance on your cards will read as paid.The maximum annual percentage rate at a federal credit union is 18%.Online lenders typically let you pre-qualify for a debt consolidation loan without affecting your credit score.You’ll need a good to excellent credit score — above 690 — to qualify for most cards.Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.

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