Credit card debt is very prevalent in the U.S. with an estimated 70 million Americans carrying debt month to month, for a total of $687 billion in credit card debt. If you’re one of the debt-burdened Americans, perhaps you’ve struggled to find a payment plan that allows you to pay down your credit card balances. Our calculator creates a personalized debt payoff plan that can help you get out of debt faster than if you continued with your current payment habit.
A credit card consolidation loan (aka debt consolidation loan) is a personal loan you use to pay off credit card debt. You receive a fixed amount of money that you must repay over a fixed amount of time and at a fixed interest rate. After opening the loan, you’ll make fixed monthly payments toward the amount you borrowed for the fixed time period.
Credit card consolidation loans have flexible requirements, with many accepting applicants with less-than-perfect credit. While it may not be required to have a good or excellent credit score, you should know that a poor credit score may mean you’ll have to pay a higher interest rate.
If you don’t have the best credit and may have had trouble being approved for alternative debt consolidation options like balance transfer credit cards, a credit card consolidation loan can be a good option. Following the payoff plan generated by our calculator can help you get out of debt and save money.
A balance transfer credit card offers a low- or 0%-APR intro period where you won’t be charged interest on transferred balances for a given time period. Transfer periods can be as long as 21 months but often incur a balance transfer fee, which is a percentage of the total amount you transfer.
Balance transfer credit cards are typically reserved for people with good or excellent credit. If you have anything less than that, you will find it hard to qualify for a balance transfer card.
If you’re someone with good or excellent credit who currently has debt on one or more high-interest credit cards, a balance transfer can be a great way to save money and get out of debt. All of your payments will go toward paying your principal balance instead of toward interest charges and principal. And by sticking to the payoff plan you get from our calculator, you can get out of debt sooner and be on your way to a debt-free life.