It’s typically considered for people who have high consumer debt.

But most of the time, after someone consolidates their debt, the debt grows back. They still don’t have a game plan to pay cash and spend less.

consolidating unsecured credit line debt-67

So I applaud your desire to attack this debt more aggressively, especially since it could well be that you have a higher interest rate than the one I used in this example.

An unsecured personal loan, which enables consumers to replace their minimum and variable card payments with fixed loan installments, might be a good option for you – if you can qualify for a low rate.

However, a balance transfer card requires discipline to pay it off before the promotional rate expires, usually no more than 21 months.

The amount of credit card debt you can transfer is limited, typically no more than $15,000.

Home improvement projects are the most common use for personal LOC, but there are other situations where the interest rate and flexible repayment options make lines of credit worth considering.

Some those options include: Just make sure when you take on a line of credit it is needed and affordable enough to be easily repaid. Though there are many attractive sides to personal lines of credit (LOC), as with every loan, there are some trouble spots to consider.

Debt consolidation loans allow borrowers to roll multiple old debts into a single new one, ideally at a lower interest rate.

Compare loans for debt consolidation and learn about your options for consolidating debt.

Myth: Debt consolidation saves interest, and there’s one smaller payment.

Truth: Debt consolidation is dangerous because it only treats the symptom.

They also probably haven’t saved for all of the “unexpected events,” which will eventually become debt too.