Loans to Help You Pay off Your Credit Card Debt Faster

In fact, more than forty-one percent of households are struggling with credit card debt. While many people don't have a lot of money on their credit cards, the average debt is almost six thousand dollars.

That being said, most people are looking for ways to get ahead of their debt. For many, this includes finding a loan that will allow them to consolidate all of their debt in one loan, with a lower interest rate.

Interested? If you are thinking about getting a loan for your credit card debt, here are some loans that you might want to try.

Home Equity Loan. This can be a great option if you are a homeowner who has some equity in your home. This means that your home is worth more than you owe on it.

Most of the time, a home equity loan has a low-interest rate, so it is a good option for homeowners. However, you could be putting your home at risk if you are unable to pay on the loan. For a home equity loan to work, you need to find a very low-interest rate.

Personal loan. You might be able to get a loan from your bank or credit union to help you pay off your credit cards. You won't have to put your house on the line in order to get a personal loan, so many people try their banks or credit union before they look any further. These loans could be easier to get simply because your bank already sees that you get paid regularly.

Debt consolidation loan. A debt consolidation loan is exactly what it sounds like. You are taking all of your debt and putting it together.

These aren't always the smartest options because you are going to end up paying more interest over the long run. Just make sure that you read the terms clearly because you could end up paying for this loan for a long time.

Balance transfers. Many people believe that balance transfers are the best way to combine your debt and pay it off faster. To do this, you must apply for a zero-percent interest balance transfer credit card.

You may be lucky enough to combine all of your credit cards into one new card. When you don't have to pay interest, you can really watch the balance get smaller every month. However, after the initial period, you could get hit with a high-interest rate. For this reason, you should only do this if you can pay it off during the initial period.

Peer-to-peer loan. Some people have some success with peer-to-peer lending. Instead of going to the bank, they look online for a lending service. These loans don't always check your credit so, even if you were declined by your bank, you might be eligible for a loan online.

No matter what loan you decide to take out, you have to really be smart about it. You want to find one with a lower interest rate than you are currently paying. You should also find a loan that allows you to combine all of your debt into one easy payment. By focusing on one payment (instead of two or three), you can easily pay it and put extra toward it every month.

If you do decide to get a loan, you should probably start with your bank or look into a home equity loan. These loans often have a much lower interest rate so you can get your debt paid off faster. If you aren't approved, you may want to look online. There are many companies who lend money with very little questions asked.

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Previously published on Medium and/or Newsbreak.