So I used one of those checks to max out the card’s ,000 credit limit, and used the proceeds to pay down a construction loan which had been charging me 7%.
This allowed me to pay the much better rate of Zero percent for one year instead.
Take time to carefully consider if this type of loan is right for you.
Consolidating all of your credit debt into one lump payment is very convenient.
Many make the mistake of using the cards again once they are paid off.
Today, the credit card companies still send similar checks, but they now have much sneakier conditions like “0% APR for one year! Excuse me, but that’s a 3% APR, about the same as my existing home equity line of credit.
It’s also important to make sure the payment will fit into your budget, as some individuals will be offered higher interest rates than others.
I’ve noticed a trend among financial bloggers recently.
Instead of risking missing a payment on one or multiple cards, there is only one payment to remember.
A credit consolidation loan isn’t just for credit card debt; many people add in other debts, even car loans to the payment.