Erase Credit Card Debt Forever With Expert Loan Options
Evaluating the Costs and Benefits
When considering a loan to consolidate your credit card debt, it's crucial to weigh the costs and benefits. Personal loans typically come with fixed interest rates, meaning your monthly payments will remain consistent throughout the loan term. This predictability can be beneficial for budgeting. However, it's essential to be aware of any fees associated with the loan, such as origination fees, which can range from 1% to 8% of the loan amount3.
On the other hand, balance transfer cards may charge a transfer fee, usually around 3% to 5% of the transferred amount4. It's important to calculate whether the interest savings during the promotional period will outweigh these fees.