Definition of consolidating credit card debt
In contrast, a personal loan is a fixed interest loan, so you pay the same, fixed amount each month regardless of changes in interest rates, which is more predictable.
Third, a personal loan offers flexible repayment terms.
You’re in deep with credit cards, student loan payments and car loans.
That’s why dishonest companies that promote too-good-to-be-true debt-relief programs continue to rank as the top consumer complaint received by the Federal Trade Commission.But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. Be on guard for “special” low-interest deals before or after the holidays.Here’s why you should skip debt consolidation and opt instead to follow a plan that helps you actually win with money: The debt consolidation loan interest rate is usually set at the discretion of the lender or creditor and depends on your past payment behavior and credit score.
Even if you qualify for a loan with low interest, there’s no guarantee the rate will stay low.
Some companies know holiday shoppers who don’t stick to a budget tend to overspend then panic when the bills start coming in.