Balance Payoff: 4 years
Balance Payoff: 3 years and 9 months
There are many sources for personal loans. Whether it be a bank or private lender, the funds are paid out in one lump sum. The loan terms set up a monthly repayment schedule which depending on the loan amount and interest is paid back over several years.
A personal loan has certain advantages: it can help consolidate debt, be a cushion against unforeseen costs, or provide funding for a big purchase. It will require a steady income and the ability to follow a fixed repayment plan.
A personal loan is different in a few ways. First, it is unsecured and doesn’t require collateral. More importantly, it has a fixed term and monthly repayment which is important for budget-minded folks. Unlike credit card debt and minimum payments, the principal declines over a set time period.
For those of you tired of high-interest rate debt, a Balance Transfer Credit Card is a viable option. This type of credit card usually offers a 6-month to 18-month interest-free option. This helps you pay down the principal and reduce debt. However, once the interest free period ends, high interest rates may apply once again.
The main difference between standard credit card terms and those of a transfer credit card is that you can transfer high-interest debt to the 0% balance transfer card for a period of time. This allows you to accelerate debt reduction. Various offers have an interest-free period from a few months to a year and half. Many find that this is a first step in debt consolidation.
Balance transfer credit cards typically have a 0% introductory rate. This means you could transfer your credit card debt and not have to deal with interest for several months or even a year (depending on the card). While our Credit Card Payoff Calculator assumes an introductory APR of 18 months, some can be as low as 6 months.
Who can you count on to help you handle your debt? For sure, creditors are not on your side. They are part of the problem. USF is a trusted resource you can count on. Talk to us, we are standing by to help you. Find out about proven programs that can get you out of credit card debt. You don’t have to go it alone. Connect with Union Square Financial, we are on your side.
Have more questions? Call us now: (888) 852-7747
