This can be a viable solution if you think paying the card off within that promo time frame is doable.
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It all depends on the person and the type of debt they’ve accrued.
A good rule of thumb is: debt consolidation is not a good option if your debt is more than 50 percent of your income.
Enter your current debts into our loan calculator to start creating a plan to eliminate your debt.
While consolidating debt certainly has merits, it is not the right choice for every individual.
HELOCs differ from home equity loans in that, instead of receiving a lump sum of cash, borrowers have an agreed-upon amount that they can take from their equity, and access as needed over time. Cash-out refinancing involves replacing your mortgage loan with a new one for more than you owe, taking part of the difference between your old and new loans in cash. There are two categories: a federal Direct Consolidation Loan and private consolidation or refinancing options.
You can consolidate most federal student loans with a Direct Consolidation Loan, which you can read more about here.
With a balance transfer, you’ll move credit card debt from all cards onto one existing or new credit card – ideally one with an introductory, interest-free or low interest rate offer.
It is also not a fit if you do not have a consistent source of income that more than covers your monthly payment.
Finally, bad credit can keep you from getting a good interest rate, which negates the main purpose of a debt consolidation loan.
Above all, the approach has to match the need and the comfort level of the borrower.
Some people prefer a debt management plan, while others benefit from simplified singular payment of a consolidation loan.
And while a consolidation loan for credit cards can be a good option when you have a lot of bills to pay off, there are plenty of alternatives to consider. Review your current financial picture and goals with a financial advisor or specialist certified credit counselor to determine the best plan for your needs.