Percentage charge – Signium Tyler http://signiumtyler.com/ Mon, 10 Jan 2022 15:01:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://signiumtyler.com/wp-content/uploads/2021/10/icon-6-120x120.png Percentage charge – Signium Tyler http://signiumtyler.com/ 32 32 What is credit card consolidation? https://signiumtyler.com/what-is-credit-card-consolidation/ Mon, 10 Jan 2022 15:01:15 +0000 https://signiumtyler.com/what-is-credit-card-consolidation/ Dealing with credit card debt creates a number of problems. And, while it may seem like a no-brainer, the fact remains that a lot of people come across this problem all the time. The good news is that there is a potential solution: credit card consolidation. So what is credit card consolidation? Basically, it is […]]]>

Dealing with credit card debt creates a number of problems. And, while it may seem like a no-brainer, the fact remains that a lot of people come across this problem all the time. The good news is that there is a potential solution: credit card consolidation.

So what is credit card consolidation?

Basically, it is one of the many terms for combining several debts into one. Something that is achieved by using either a credit card, a personal loan, or some other financial product to cover everything else. As such, credit card consolidation is a very powerful tool.

Is it good for everyone?

If you spend time researching credit card consolidation, chances are you will stumble upon horror stories of its misuse. Simply put, credit card consolidation is not something that will always provide good results for those interested. He can do it for people who are well suited for it. However, it is quite possible that others will end up paying more than before to consolidate their debt. This is especially true if they haven’t been able to get their spending under control.

Are you ready to purchase a new financial product?

According to experts from https://www.freedomdebtrelief.com, people usually consolidate their debts using a new financial product. It could be a credit card balance transfer, a personal loan, or something else.

However, most people use a new financial product because there is a good chance that they will not be able to consolidate their debt with what they already have on hand. If you can’t or don’t want to purchase a new financial product, you might want to look for something else.

You have a good credit rating

Just because you can consolidate your debt doesn’t mean that it’s a good idea for you to consolidate your debt. Generally, the higher your credit score, the better the chances that you will be successful in leveraging credit card consolidation. It is because a higher credit score results in a lower interest rate and therefore lower interest payments, which means you can get a better deal on the new financial product that you will use to consolidate your debt.

You can afford to make payments

It is important to note that credit card consolidation cannot reverse a bad situation. It can help, but you need to make a conscious effort to change things. Yes, if you do it right you should be able to get lower costs. However, these reduced costs won’t be enough if you’re still struggling with the problem that got you into a financial crisis in the first place. In other words, if you can’t afford to make payments, your debt consolidation can backfire.

You can afford to pay a lot right away

Often, the financial products used for credit card consolidation come with interest-free periods and other limited-time offers. As a result, you can get the most out of it if you are able to pay a lot right away.

This is because the more you repay during these periods, the less interest you will have to pay once it resumes. In some cases, you may need to take advantage of time-limited offers to make credit card bundling beneficial for you. Without it, you could end up paying more than less.

You are not an impulse buyer

If you are an impulse shopper, you might want to avoid credit card bundling. There are many horror stories about people who put themselves in a worse situation by consolidating their debt before quickly depleting their credit cards.

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How To Negotiate Debt With Credit Card Consolidation Companies https://signiumtyler.com/how-to-negotiate-debt-with-credit-card-consolidation-companies/ Mon, 06 Dec 2021 01:50:31 +0000 https://signiumtyler.com/?p=274 Americans are drowning in credit card consolidation debt, with an average credit card balance of $5,315, according to findings from Experian. The average credit utilization (the percentage of credit a consumer uses of the total credit available to them) was 25.3% in 2020, the lowest level in a decade. If you rely on credit cards […]]]>

Americans are drowning in credit card consolidation debt, with an average credit card balance of $5,315, according to findings from Experian. The average credit utilization (the percentage of credit a consumer uses of the total credit available to them) was 25.3% in 2020, the lowest level in a decade.

If you rely on credit cards to get you through, you may feel like you’re never going to get out of credit card debt. But you may have options if you aren’t able to pay off your credit card debt. One possibility is that you can negotiate your debt with credit card companies. This can help you get back on track and avoid more damage to your credit card consolidation

Why credit card companies negotiate debt

When finances get tight, credit card payments are often one of the first bills people let slide. After all, credit card debt is unsecured. If you don’t pay your auto loan or your mortgage, your car or house could be at risk. The same isn’t true with credit cards.

That’s not to say that falling behind on credit card payments isn’t dangerous. When you pay any bill late, credit card bills included, you may damage your credit. Credit problems can haunt you for years. Plus, if you default on a credit card bill, there’s a chance that the bank might sue you, and that leaves you vulnerable to more potential problems.

Credit card issuers are aware that your unsecured credit card debt may be at the bottom of your priority list if you’re in a financial bind. When you fall behind on a credit card bill, the bank’s priorities may shift. Rather than risk you ignoring debt or filing for bankruptcy, a card issuer may be willing to consider negotiating credit card debt so that it gets back some of its money rather than nothing.

Credit card issuers also have an incentive to retain you as a customer — so they may be willing to negotiate in order to maintain a lifelong relationship or keep you from missing payments.

How does credit card settlement work?

Credit card settlement is a type of debt settlement that will let you pay off credit cards for less than what you originally owed. This is usually done through a third-party agency, although you may also be able to negotiate hardship options or lower interest rates on your own. When you use a debt settlement company, you will be responsible for sending payments to the agency and may have to pay extra fees for the service.

The benefits of credit card settlement are clear: You may be able to get out of debt more quickly without the responsibility of the full debt load. However, your credit score will likely drop as a result of debt settlement, and you may have tax consequences down the line. If you settle a $15,000 debt for $10,000, for instance, you may be taxed on that $5,000 difference.

Types of credit card debt settlements

Card issuers are likely to agree to one of three types of settlements. The best one for you depends on your current financial situation.

Lump-sum settlement

With this negotiation technique, you offer to settle your outstanding debt in one big payment, albeit for less than your balance. For example, you might owe $4,000 between charges, interest and fees on your credit card, but you ask the bank to accept $2,500 (your original credit limit) to settle the account in full. If the card issuer accepts, it will forgive the remaining balance.

Lump-sum settlements have two potential downsides. First, a notation may be added to your credit report showing that the account was “settled for less than the full balance.” This could be bad for your credit score. However, if your account was already past due, the notation may not cause additional damage. You also might have to claim the forgiven debt as income on your upcoming tax return and potentially pay taxes on that amount.

Workout agreement

A workout agreement typically involves your credit card issuer lowering your interest rate or temporarily waiving interest altogether. The bank may also be willing to take other steps to make it easier for you to keep up with your debt, including reducing your minimum payment and potentially waiving past late fees on your account.

On the other hand, your card issuer may close your account as part of the arrangement. Although your credit score is likely already damaged from late payments, closing your account (and thus wiping out your available credit limit) could raise your credit utilization rate. Credit utilization is responsible for up to 30 percent of your FICO Score, so if your credit utilization increases, your credit score may drop further.

Hardship agreement

Sometimes called a forbearance program, a hardship agreement may be an option if your financial setback is temporary. If you were to suddenly lose your job or have an unexpected illness or injury, you should call your card issuer right away to see if it offers a hardship program.

With a hardship plan, your card issuer may agree to lower your interest rate, suspend late fees or reduce your minimum payment on a temporary basis. You might even be able to skip a few payments while you work to rebound from the financial setback.

Unfortunately, your credit history and scores could still be at risk with this type of agreement. Depending on the terms of the bank’s hardship agreement, it may report negative information to the credit bureaus during the forbearance period.

How to determine if you should negotiate your debt

If you have credit card debt that you are looking to settle with the credit card company, consider a few factors first. First, explore other options like credit counseling or bankruptcy. Either of those may be a better fit for your specific situation.

If you are not already several months behind in your payments, the credit card company may not be willing to enter into debt negotiation, so you might need to consider other options. The credit card company will also want to make sure that you have the financial ability to pay any settlement. This could be a lump sum or enough monthly cash flow to fulfill your settlement obligations.

How to negotiate credit card debt

Negotiating with credit card companies can be tricky because many will likely be reluctant to change their terms unless they are worried about you filing for bankruptcy. Whether you choose to negotiate credit card debt on your own or hire a professional to represent you, it’s best to come prepared to negotiate. Start with the following steps:

  1. Confirm how much you owe. Before credit card negotiation begins, check your account balance online or call your card issuer to discover your current balance. It’s also wise to confirm the current interest rate on your account.
  2. Review your options. Decide if a lump-sum settlement, workout agreement or hardship agreement makes the most sense for your circumstances.
  3. Call your credit card issuer. If you’ve decided to handle negotiations on your own, call your credit card company and ask to speak with the debt settlement, loss mitigation or hardship department; a general customer service representative won’t have the authority to approve your request. Once you’re connected with someone who has the ability to negotiate with you, explain your situation and make your offer. Be polite but firm.
  4. Outline your terms. If you’re considering filing bankruptcy or hiring a professional to help you with your debt, let the card issuer know and mention that you’d rather work things out directly. At this point, be prepared for the card issuer to potentially freeze your credit limit or close your account.
  5. Take detailed notes and follow up if needed. If you like, you can opt to record the call, although some states require you to let the card issuer know that you’re recording the call and vice versa. Don’t be afraid to ask for a supervisor or call back multiple times over the coming days and weeks if you’re unhappy with the terms being offered.
  6. Get the agreement in writing. If the card issuer agrees to a settlement or arrangement that you’re happy with, ask for documentation. You don’t have a deal until you have it in writing.

Getting help with credit card debt

When you’re overwhelmed with credit card debt, it might help to have a professional work on your behalf. In general, there are two types of companies that may be able to negotiate with credit card companies for you: debt settlement companies and credit counselors.

Debt settlement companies

Debt settlement companies are for-profit businesses that will try to negotiate lump-sum settlements with your creditors. Typically, you stop making payments to your creditors and start sending funds to your debt settlement company each month to build your account.

Once your account with the company grows large enough, the company will call your card issuer and make an offer to settle the debt for less than you owe. If the bank accepts the offer, the debt settlement company sends the funds to your creditor and takes a cut for its services.

Debt settlement companies can potentially save you time and money, but there are potential issues with this approach. First, if you stop paying your credit card company, it will report late payments to the credit bureaus. The account may eventually be charged off, sold to a collection agency or worse. All of these actions can have serious consequences where your credit is concerned. There’s also no guarantee that your bank will be willing to negotiate.

You should also be aware that debt settlement companies aren’t cheap. These companies typically charge a percentage of the amount they save you when they negotiate a debt. In the end, you could end up paying thousands of dollars for debt settlement services.

Credit counseling companies

A credit counseling agency may be able to help you negotiate credit card debt under an arrangement known as a debt management plan. A debt management plan, or DMP, may help you consolidate your debts and lower your interest rates.

If you meet with a credit counselor and determine that a DMP is a good fit for your situation, the credit counselor will contact your creditors (like credit card issuers) to try to negotiate a more affordable payment arrangement. If the credit counselor is successful, you begin making a single monthly payment to the credit counseling company, which, in turn, distributes smaller payments to the creditors included in your DMP. In general, a DMP may help you pay off your outstanding debts in five years or less.

Although credit counseling companies are often nonprofit organizations, their services aren’t free. Many credit counseling companies charge startup fees and monthly fees (often $25 to $35) when you enroll in a DMP. Depending on how long it takes you to pay off your debt, even these small fees can add up to thousands of dollars.

How does credit card debt settlement affect your credit score?

If you work with a debt settlement company, the company might advise you to stop making payments on your debt during the negotiation process. This may cause your debt to fall into delinquency, which your creditors will then report to the credit bureaus. Delinquencies stay on your credit report for seven years, meaning you could feel negative impacts even after you settle the debt.

Debt settlement may also affect your credit score if it affects your credit utilization. If you stop making payments on your debt, your balance may climb due to additional charges and late fees. Using too much of your available credit and not paying off debt will cause your score to drop while you’re in the process of settling that debt.

Alternatives to credit card debt settlement

Debt settlement is the right choice for some people, but keep in mind that it will lower your credit score and make it harder to borrow money in the future. Even if you do qualify for future credit, your interest rates will be much higher than they would be if you had an excellent credit score. If you’d like to avoid debt settlement, you do have other options.

Credit card balance transfer

If you have a lot of credit card debt, look for promotions on a 0 percent APR balance transfer credit card. The terms vary by offer and card issuer, but typically you can find a 0 percent APR period that lasts between 12 and 20 months.

This lets you move your credit card balance over and pay it off over a few months without facing APR charges. But not all balance transfers will move over your full amount, which means that you’ll need to make payments on your new card and your old one. You’ll likely also need to make a minimum payment every month, even if you’re not using the card and don’t have an APR.

Debt consolidation loan

If you have many different kinds of debt or a lot of credit card debt, a debt consolidation loan might help. This lets you take out a lump-sum amount, pay off all of your outstanding debt and then make one monthly payment to your new loan.

Debt consolidation loans tend to have lower interest rates than credit cards, helping you pay off your credit card debt without racking up even more interest charges. That said, the interest rate you’re charged depends on your credit score. Before applying for a debt consolidation, shop around with a few lenders to see which offers you the best deal and the best terms.

The bottom line

Credit card negotiation may feel overwhelming, but trying to avoid the problem will only make it worse. The truth is that you have many options for reducing your debt. Whether you choose to negotiate credit card payoff yourself or work with a professional, it’s important to carefully weigh your choices and come prepared when it’s time to call your credit card company.

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How to Pay Off Credit Card Consolidation Debt Fast https://signiumtyler.com/how-to-pay-off-credit-card-consolidation-debt-fast/ Mon, 06 Dec 2021 01:41:43 +0000 https://signiumtyler.com/?p=292 Our aim is to provide you the confidence and tools that you require to make improvements to your financial situation. While we do are compensated by our partners lenders, who we will always name, our opinions are our personal. Credible Operations, Inc. NMLS # 1681276, which is known in this article in this article as “Credible.” While […]]]>

Our aim is to provide you the confidence and tools that you require to make improvements to your financial situation. While we do are compensated by our partners lenders, who we will always name, our opinions are our personal. Credible Operations, Inc. NMLS # 1681276, which is known in this article in this article as “Credible.”

While credit card debt may be very easy to get into but its high rate of interest could make it difficult to climb out of. The good news is that there are plenty of sources that can assist you to discover how to get rid of credit card debt in the shortest time possible in order to save cash ConsolidationNow credit card department.

How do you pay off fast credit card debt

It’s a good thing that If you’re reading this post you’ve already taken the first step in the goal of paying off your credit card debt. You’ve decided to find out more about the options available to you.

The following are steps you can follow to clear the credit card debt you owe:

  1. Contact your credit card company first.
  2. Create a debt repayment strategy
  3. Utilize the debt avalanche technique
  4. Make use of the debt snowball method.
  5. Think about a balance with 0% APR transfer
  6. Think about a consolidation of your credit cards loan
  7. Make use of the equity in your home
  8. Remove the unnecessary items

1. Contact the credit card company first.

Take this as your first step towards paying off your credit debit card balances.

Before you start implementing a plan to pay off debt The initial step would be to call the bank (or companies if you’ve got several cards). It is important to ensure that you are current on your account balances. You should also inquire what options you have in terms of in regards to any assistance they could provide.

In some instances it is possible to obtain lower interest rates or a temporary reduction in your payment or change in the due date. You’re more likely to receive the best result if declare that you are looking for low-interest credit cards from different businesses.

2. Create a debt repayment strategy

Take this into consideration in case you’re only beginning to work out your debt payment solution.

If you’ve done all you can to communicate with your credit card issuers it’s time to create plans to pay the debt. While it’s a good idea to pay the minimum amount for all cards in order to prevent a negative impact of your credit report, in the event that you’ve got multiple debt sources, it’s important to spend time to determine the most efficient strategy to manage your finances.

Make a list of all the sources of debt you have including credit cards, as well as all kinds of loan (student loans mortgages, auto loans personal loans, etc.). Note them all down or make a spreadsheet to note the interest rate for each.

If you’re in possession of an individual loan (or are thinking about getting one) You can utilize our online calculator to figure out the monthly payment. Enter the loan amount as well as the interest rate and loan period to figure out the amount you’ll have to pay throughout the term that the loan.

3. Make use of the debt avalanche method.

Take this into consideration if you are looking to save the most amount of interest.

Now that you’ve got the plan in place now is the time to begin working in paying off the credit card. One option to consider is to use the debt avalanche technique. This method will identify your debts with the highest interest ratesit’s the top priority.

The logic behind this is that within the same time, a debt with a higher interest is the one that will cost you the most (relative to amount you are obligated to) So, you’ll want to settle it as quickly as you can. Pay off the debt that has the most expensive interest rate, and so on.

If you’re most motivated in saving cash by prioritizing debts with the highest interest first, this might be the right option for you.

4. Make use of the debt snowball method.

Think about this when you’re motivated by small victories.

If you would prefer to have small, regular wins as a way to motivate people to repay all of their debt, then you can employ the debt snowball technique.

This method is focused on repaying the debt using the lowest balance first regardless of the rate of interest on credit cards. If you’re concerned that you’ll be unable to pay off a huge amount initially, think about making a decision to pay off a smaller amount which you can cross off the list faster.

If you’re in need of tiny successes in order to inspire you, this approach could be your best option.

5. You might want to consider a charge card balance transfer

Take this into consideration if you can clear all your debt prior to the time when the introduction period ends (and in the event that the balance transfer fees don’t exceed any savings).

If you’re looking for a few days in order to put your money in order and wish to avoid accruing massive credit card interest such as the 0% APR balance transfer card is an excellent alternative.

They typically provide the possibility of up to 18 month at 0 APR for balance transfers. This means you can transfer your existing balance to a new credit card and not accrue interest for several months. Remember that many APR deals with 0% charges the balance transfer feeas well as any purchases made following the opening of the card will begin accruing interest immediately and you must make payments as soon as you can to avoid piling the cost of interest.

Do not use the balance transfer to justify a reason to avoid paying your debt for the time period with a 0% interest rate because interest will begin increasing right after the introductory APR deal is up. Instead, try to save enough money so that you’re able to pay your balance by at the close of your promotional period, or divide the total by the number of months to pay it off and pay off the amount of debt every month until at the time that the introductory APR ends and you’ve paid it off.

6. Think about a consolidation of your credit cards loan

Take this into consideration if you have good credit and can get a lower interest rate and you can repay the debt before period is over.

If you’re a creditworthy person and credit score, you might be able to repay your debt by utilizing a credit card consolidation loan, thus reducing the amount of interest that you’ll be liable for.

If you choose to go the traditional route, then you’ll be required to make use of a personal loan with low interest to pay off the credit card company. This means that the future payments will be made to the new lender. However, unlike credit cards that have compound interest however, a personal loan is repayable in installments. you’ll get a lump sum of cash in the beginning and then pay back the loan in fixed monthly installments until the interest and loan are paid in full.

Certain personal loans have an initial fee, so keep an in mind charges you’re not expecting. However, Credible makes it simple to find rate prequalification rates for our loan providers in the table belowand also provides the transparency of the rates and fees for all of them.

7. Make use of the equity in your home

Look up:

Take this into consideration if you would like a lower interest rate and you are comfortable with using your home for collateral.

In the event that you’re the owner of a property then you may be able to tap the equity in your home to pay off any debt. Here are some alternatives to consider:

  • Home Equity Line of Credit (HELOC):as an alternative source of money to pay off credit card debt with high interest debt. A HELOC doesn’t require great credit score to get a decent rate, and you could typically get a lower interest rate than an unsecured personal loan.
  • Cash-out refinancingA cash-out refinance enables you to draw money from your home by refinancing the current mortgage to a sum higher than the loan amount currently in place.

8. Take out the items that aren’t essential

Take this into consideration if have to clear funds in your budget to pay off debt.

If you’ve got other substantial monthly costs that you cannot be living without, you should consider making some sacrifices to assist you in getting back to your feet.

If you’re considering making some major changes to pay off debt, think about reducing the size of your home or apartment to a size that reduces your monthly costs. You may even consider an additional roommate to offset the cost of housing.

Even the smallest things like bringing lunch from your home to school or work, or trying to cook more at home (rather than dining out) will help you save money when you do it regularly.

Every small thing adds up and it could cost you more if you’re putting it on your credit card and then paying for interest.

How to prevent the future debt from credit cards

After you have gotten rid of financial debt from credit cards, it’s great plan to develop solid habits to ensure that you are able to avoid another similar circumstance in the near future. These tips will help you stay clear from debts incurred by credit cards going into the future:

If you don’t have a specific budget you stick to, this may be the right time to begin. It is important to ensure that your budget contains the non-negotiables such as rent and utilities, food and loans, first, since these are the first categories to be considered. You can then decide how much you are able to spend using your credit cards every month in relation to the categories you can choose to spend it on.

If you have your budget in place you can use it to monitor your expenditure throughout the month. It is possible to perform this by yourself, reviewing your expenses every few days , or perhaps every week, or using a budgeting application.

Revisit the budget you’ve made for yourself over the next two months to ensure you’ve accounted for all your expenditures in a timely manner. In the future you should be a regular habit of monitoring your accounts frequently.

A savings account for emergencies is an account to save money in which you can save enough money to cover a few months worth of expenses in the event that something unexpected happens to your income.

There’s no exact amount that you’ll require, however the majority of experts recommend at least three to six months’ worth of costs. If, for instance, you spend an average of $3,000 per month, you should strive to have an emergency fund of between $18,000 and $9,000 savings account.

An emergency fund could also be used to pay off debts from credit cards before the interest begins to accrue which is why it’s a good plan to start one immediately. If you do end up having to dip from your emergency fund to cover unplanned expenses, make a goal of building it back as quickly as you can.

While it is tempting to only pay the minimum amount on your credit card every month, you should make it a habit of paying the maximum amount you can, preferably the entire amount. Any balance on your credit card carried into the following month will start to accrue the cost of interest and will cost you each day.

A balance on your credit card also affects your credit utilization rate and the credit report — which could lower your score on credit if it is higher than the limit of a certain percentage of your credit. A lower credit score could lead to higher APRs on loans and other credit cards you choose to take to the future.

If you’re able to get extra money during a specific month, for instance an income tax refund or bonus at the end of the year you must use the money wisely.

Imagine this in this manner using taxes to cover debts on credit cards or a loan, as an instance, could give you more money over the long term because you’ll cut down on interest charges by paying off the debt earlier.

It’s not difficult to make use of the extra money to pamper yourself, consider it as an investment for the long term and make yourself a reward in the future. time.

It’s generally a good idea to set up autopay on your credit card and other monthly payments to ensure that you can reduce the chance of not making a paymentespecially if you’ve got several accounts with different due dates to track.

Late payment fees on credit cards may be more than $30. Some cards be charged a penalty APR for late payments. It’s worthwhile to set up your card in order to stay clear of these penalties.

But that doesn’t mean you should not pay the invoices. Review each invoice to ensure that the account isn’t contaminated by fraudulent charges charged to your account, and also to make sure that any refunds you’re hoping for come through.

It’s a given however, don’t go on with this cycle of debt with high interest. Make a point of paying off any credit card debts you are currently carrying and not utilize credit cards.

If you’re too eager to be enticed then you may want to look into cutting off your cards or donating them to an amiable friend or family member to keep to ensure you don’t make use of them , so you can concentrate on paying down the debt you owe right now. In any case, paying off credit card debt can only be successful if you stay clear of the temptation of accruing more debt to pay it off, so be mindful of that while you’re going through this procedure.

Find the top products that will assist you in paying off your debt

The most efficient methods to get your financial head above water usually include the use of a balance credit card transfer or a personal loans.

After you’ve determined the most effective option for your needs and budget The next step is to select the best loan or credit card among the many options. Credible can assist you make the right choice by helping you compare personal loans and credit cards optionsto help you choose the best option to your requirements.

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3 ways to spring clean your loan and credit card consolidation debt https://signiumtyler.com/3-ways-to-spring-clean-your-loan-and-credit-card-debt/ Mon, 06 Dec 2021 01:17:41 +0000 https://signiumtyler.com/?p=301 By Polly Fleeting · Friday, 17 September 2021 fact checking process and our editorial guidelines.”> Fact Checked Advertiser disclosure Spring has well and truly sprung credit card consolidation. And while this may have you turning your attention to dusting off drawers, clearing out your winter wardrobe or tending to the garden, now could be the […]]]>

Spring has well and truly sprung credit card consolidation. And while this may have you turning your attention to dusting off drawers, clearing out your winter wardrobe or tending to the garden, now could be the time to spring clean your finances as well!

And what’s a big part of many Aussies’ personal finances? Loan and credit card consolidation

So we’ve spoken to the experts.

Combining the knowledge of Mozo’s banking expert Peter Marshall, Athena’s chief marketing officer Natalie Dinsdale, Nano Digital Home Loans’ chief executive officer Andrew Walker and Alex’s chief financial and product officer Craig Fenwick, here are three top tips on helping you pay down your debt this spring!

1. Refinance your home loan

“So why refinance? Why wouldn’t you is more the point!,” says online home loan lender Athena’s chief marketing officer, Natalie Dinsdale.

According to Athena, the average owner occupier principal and interest variable refinance home loan rate for September 2021 sits at around 3.14%. Dinsdale explains that if you’ve got a rate that doesn’t start with a two or lower, it’s time to do a home loan health check and consider refinancing.

“Refinancing your home loan is simply swapping your existing mortgage for a new (and hopefully better) one, which often means you’re looking for a new lender as well,” she says.

“Major lenders tend to give all their best rates to new customers rather than to their faithful existing ones, leaving you feeling a little unloved and under-appreciated. They cheat on you, it’s time to cheat on your bank.”

Nano Digital Home Loans chief executive officer and co-founder, Andrew Walker calls this a “loyalty tax.”

He also says that refinance customers should look for lenders that offer an offset account on their loan products. According to him, not only can it help you bucket your money in one place, it also reduces the overall interest you pay on your home loan.

“The best thing you can do is reduce the interest you’re paying on what is most likely one of your biggest financial investments.

“Find a lender that offers you a free 100% offset account – like Nano’s offset sub account – and get your salary, rent, payments, savings moved into it. Every dollar makes a difference over time. Be smart with your money and make sure you can put funds away for certain goals.”

Want to compare refinance home loans? Take a look at these top options below …

Top refinance home loans

Athena AcceleRATES Variable Home Loan
  • Refinance up to $2,000,000
  • Low variable rates from 1.99% p.a. (1.99% p.a. comparison rate*)
  • No fees

Need to refinance your current home loan to an option with low rates, no fees and repayment flexibility? Meet the Athena AcceleRATES Variable Home Loan, which took out three 2021 Mozo Experts Choice Awards^^ for Best Home Loan Innovation, Best Low Cost Home Loan and Best Investor Home Loan. With this loan, customers can refinance up to $2,000,000 and variable rates are offered based on loan-to-value ratios (LVRs). For owner occupiers, rates start at a low 1.99% p.a. (1.99% p.a. comparison rate*) for borrowers with an LVR of 60% or lower, and go up for customers with LVRs up to 80%. For investors, rates follow the same LVR structure and start at 2.39% p.a. (2.39% p.a. comparison rate*). Athena also doesn’t charge any fees on this loan, so that means you won’t pay things like application, ongoing service or discharge costs. And when it comes to repayments, there is the choice of a weekly, fortnightly or monthly schedule as well as the ability to make free extra repayments and redraws. There is no offset account available on this loan.

Nano Variable Home Loan
  • Refinance up to $2,500,000
  • Low variable rates from 1.99% p.a. (1.99% p.a. comparison rate*)
  • No fees

If you’re looking to refinance your mortgage with a low-rate online home loan lender, Nano’s Variable Home Loan could be worth considering. Not only does Nano offer low variable rates that start at 1.99% p.a. (1.99% p.a. comparison rate*) for owner occupiers and 2.29% p.a. (2.29% p.a. comparison rate*) for investors, there are no upfront, ongoing or discharge fees. Borrowers can refinance up to $2,500,000 with this loan and must pay it back on a monthly repayment schedule, there is no option for weekly or fortnightly repayments. The good news is though, Nano allows customers to make free extra repayments and redraws whenever they like. Plus, there is the option of an offset account.

2. Consolidate your personal debt

When it comes to personal debt, consolidating your multiple repayment plans can be a time and money saver. From personal loans and car loans to credit cards, a debt consolidation loan is a way to pay off multiple personal debts with one interest rate.

“Debt consolidation is when you combine multiple debts into a single loan,” Alex chief financial and product officer, Craig Fenwick explains.

According to Alex Bank, approximately 20% of its customers have taken out a debt consolidation loan, with the average loan amount just under $17,000.

“Consolidating means you only have one loan, one interest rate and one repayment to manage. Many consolidation loans involve paying out high interest credit card debt, hence you also might save some money too,” Fenwick says.

In fact, according to the Mozo database, the average unsecured personal loan rate (generally what a debt consolidation loan is) sits at 9.74%, while the average credit card rate is a higher 16.88%. Also note, sometimes debt consolidation loans can be secured, where you may receive an even lower rate by putting up an asset as collateral.

Mozo’s banking expert, Peter Marshall says debt consolidation can be a good option for consumers struggling with multiple debts, as long as they make their repayments on time and don’t fork out too much in fees.

“For customers with multiple debts, remember that while a debt consolidation loan might offer a low rate, it’s crucial to stay on top of your repayments once you sign up or you could end up incurring late fees and greater interest charges,” he says.

“While it’s true that a debt consolidation loan is there to help make repayments easier, you’ll still need to put in the leg work to pay off what you owe each time a payment is due.

“And don’t forget to consider things like application and ongoing service fees, as these additional costs may stack up and could even outweigh what you save by rolling your debts into one.”

Also note that it’s not a good idea to include your home loan debt in a debt consolidation loan. This is because home loans are generally longer (about 20 or 30 years) and have lower rates, so combining it with other personal debt might end up costing you more in interest over time.

Considering a debt consolidation loan to get on top of what you owe? Check out these killer options …

Top debt consolidation loans

Alex Bank Personal Loan
  • Consolidate debt up to $30,000
  • Fixed rates from 5.45% p.a. (5.45% p.a. comparison rate*)
  • No upfront, ongoing or early repayment fees (conditions apply)

Consolidating your debt could be made easy with an Alex Bank Personal Loan, which was awarded a 2021 Mozo Experts Choice Award^ for Best New Loan Product. With this product, customers can consolidate their debt of up to $30,000 over one to five years and receive a fixed rate from 5.45% p.a. (5.45% p.a. comparison rate*) based on their credit rating. On top of that, there are no upfront, ongoing or early repayment costs attached to this loan as Alex Bank is currently waiving the $295 upfront establishment fee on approved applications made by 30 September 2021. When it comes to paying back the loan, there is a choice of making weekly, fortnightly or monthly regular repayments. Plus, Alex Bank also allows customers to make free extra repayments. Just bear in mind though, there is no redraw facility so you cannot access your additional contributions once they have been paid.

OurMoneyMarket Low Rate Personal Loan
  • Consolidate debt up to $75,000
  • Fixed rates from 5.45% p.a. (6.07% p.a. comparison rate*)
  • Extra repayments and redraws allowed

After an award-winning debt consolidation loan? Say hello to the OurMoneyMarket Low Rate Personal Loan that snapped up a 2021 Mozo Experts Choice Award^ for Best Unsecured Personal Loan. OurMoneyMarket allows borrowers to consolidate debt of up to $75,000 and offers loan terms between one and seven years. Based on an applicant’s credit score, fixed rates start at 5.45% p.a. (6.07% p.a. comparison rate*). For repayments, there is the choice of weekly, fortnightly or monthly as well as the option to make free extra repayments and redraws. There are no ongoing service charges or early repayment penalties with this loan, however it’s important to budget for a $250 upfront establishment fee when you first sign up.

3. Find a balance transfer offer

If your biggest trouble is paying off your credit card debt, a 0% balance transfer offer might be exactly what you need.

“Despite other lending products, like home loans and personal loans, seeing drops in rates over the years, the story isn’t the same for credit cards,” says Marshall.

“In some cases, consumers with unmanageable credit card debt are facing hefty interest repayments on what they owe. But that’s where a 0% balance transfer offer can help.”

Right now on the Mozo database, there are a bunch of 0% balance transfer offers ranging from five to 36 months. What this means is that credit card providers allow customers to transfer their credit card debt onto a new card and may offer them 0% interest as they pay it off for a set amount of time.

“A balance transfer allows a consumer to focus on paying down their credit card debt without worrying about being charged interest,” Marshall says.

“The catch is that any new transactions made on a balance transfer card will be subject to interest charges, which can be hefty. However, for those looking to clear debt this can be seen as a benefit as it is a solid deterrent for cardholders to indulge in unnecessary spending.”

If you want to take advantage of a balance transfer to help clear your credit card debt, have a peek at these products below …

Top balance transfer credit cards

Kogan Money Black Card
  • 0% p.a. balance transfer rate for 12 months (21.74% p.a. after)
  • $0 annual fee
  • Rewards program

Find out more

Need up to a year to pay down your credit card debt? Well, the Kogan Money Black Card offers a 0% p.a. balancer transfer rate for 12 months (no balance transfer fee), giving you plenty of time to pay back what you owe without worrying about interest. On top of that, there is no annual fee attached to this credit card. And once your balance transfer period is up, if you continue using the card there is a rewards program you could take advantage of. Earn up to 2 Kogan points per $1 spent on eligible purchases made on the card, as well as receive up to 55 interest free days on eligible purchases (rewards points and interest-free days only available once the BT offer is over – T&Cs apply). Bear in mind though, after the 0% balance transfer period the purchase rate on this card reverts to a hefty 21.74% p.a.

PayPal Rewards Card
  • 0% p.a. balance transfer rate for 20 months (20.99% p.a. after)
  • $0 annual fee
  • Rewards program

Find out more

Paying off your credit card debt doesn’t have to cost you truck loads in interest. In fact with the Paypal Rewards Card, not only do customers receive a solid balance transfer offer of 0% p.a. for 20 months, there are also no balance transfer or annual fees to worry about. And for those looking to use the card once the balance transfer offer is up, while the rate reverts to a high 20.99% p.a. there is a rewards program and interest-free days on offer. With PayPal Rewards, cardholders can earn up to 1 point per $1 spent on eligible purchases and there are up to 55 days interest-free on eligible purchases too (T&Cs apply). Don’t forget though, rewards points and interest-free days only apply to purchases made outside of the balance transfer offer timeframe, not during it.

Want to find out how you can spring clean your finances even more? Head over to our home loan comparison page, personal loan comparison page or credit card comparison page for more providers and all the info you need!

^^See information about the Mozo Experts Choice Home Loan Awards

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

*** WARNING: The Comparison Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don’t consider your personal objectives, financial situation or needs and we aren’t recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don’t cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.


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Tips to Fix a Bad Credit Rating and Get a Credit Card Consolidation https://signiumtyler.com/tips-to-fix-a-bad-credit-rating-and-get-a-credit-card/ Mon, 06 Dec 2021 01:17:22 +0000 https://signiumtyler.com/?p=298 Breadcrumb Trail Links Opinion Life Columnists If you need a credit card and have bad credit card consolidation, your options can feel limited. But there are solutions, and you can fix your credit rating at the same time. Author of the article: Scott Hannah Publishing date: Sep 25, 2021  •  September 27, 2021  •  8 […]]]>

If you need a credit card and have bad credit card consolidation, your options can feel limited. But there are solutions, and you can fix your credit rating at the same time.

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Q: I just started a new job, my third since getting laid off at the start of COVID. I really need this job and they’ve just told me that I have to use my own credit card to pay for my expenses and then submit receipts for reimbursement. I don’t have a credit card right now and I’m worried about applying because my credit was pretty bad. I did pay off lots of what I owed with my ex, but I’m sure there’s still a lot of bad information about me if someone checks my credit. I assume that’s why I lost my last job. Is there any way I can check to see what I need to fix? ~Elliot

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A: Starting several new jobs within a relatively short period of time, during a pandemic, on top of dealing with debt incurred during a previous relationship is a lot to handle all at once. Feeling the pressure to keep your current job is only natural. There is a lot most Canadians don’t know about their credit and the credit reporting system, and this big unknown tends to cause a lot of stress.

One of the best ways to alleviate this unknown is to get a copy of your own credit report from each of Canada’s credit reporting agencies. Equifax Canada and TransUnion Canada will both provide them to you for free. There will be some differences between your reports from the two companies, so it is best to request them both.

Once you have your credit report in hand, read it over carefully. Make sure that the information about your debts is accurate and follow the instructions to have any errors corrected. Keep in mind that you might see some older personal information on your reports. That was the information that was reported at the time you made your last credit applications. In this age of needing to supply more personal information than we have had to in the past, you might assume that the credit bureaus download information about you from various sources; this is in fact a myth.

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The information reported on your credit report is supplied to either Equifax or TransUnion by the lenders you deal with, and the information always pertains to debt. If you applied for a consolidation loan, the information about why you lost your job and needed the loan are not reported. If the loan was approved, then only certain loan details will be reported on your credit file. These include how much you borrowed, what your payments are, and if you make your payments on time or not. If your payments are late, then information about how late you make them is also reported.

When you are concerned about your credit rating, it’s important to get reliable facts about where things stand. Once you know what you’re dealing with, focus on improving or changing what you have control over. Most things on a credit report will fall off after six or seven years. This means that good or bad, your report is always changing and every month you have the opportunity to take steps to improve it.

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What is not on a credit report

Along with the myth that credit bureau companies check into all areas of your life to find information to report, here are four specific things that are not included in your report:

1. Credit applications that are not approved

When you make a credit application, the inquiry itself is recorded in your credit file. Someone looking at your report will be able to see where you applied for credit and if there is a new account with that lender. However, if you change your mind and don’t accept the loan or credit card you applied for, or if you are declined by the lender, that information is not reported.

Top 5 Reasons People are Declined for Debt Consolidation Loans

2. Your medical information

Your medical information, including whether or not you have COVID-19 vaccinations, is not reported on your credit report. If you needed a loan to help pay for medical expenses, the loan details will be reported, but not the condition that caused the requirement treatment.

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Depending on where you got the loan and if the name of the lender reveals what kind of lending they do, there is a slight chance that someone could guess generally what it’s for. For example, if your bank or credit union turned you down for the loan and you still needed the money, if you approached a private lender that is known to grant medical loans, their name could reveal that you or a family member needed money to pay for medical expenses.

The same can be said of dentists. Many dental offices have large bills that they need to collect payment on. If the dentist is listed as the creditor on your credit report, one would assume you had a large dental expense that you were responsible for.

Top 5 Solutions When You’re Declined for a Debt Consolidation Loan

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3. Information about your income taxes

The credit bureaus are not able to request and obtain information from Canada Revenue Agency (CRA) about your tax account. If you owe money after filing your income tax return that debt is not reported to the credit bureaus. CRA is the most powerful creditor in Canada, but they don’t operate the way normal creditors do.

However, if your debt remains in collections with CRA and they are forced to pursue you legally through the courts, any judgment they are granted against you will be a matter a public record and reported on your credit report. Repaying your CRA debts must always come first. If this is a debt you’re struggling with, contact them to work out a reasonable repayment plan sooner than later.

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What to Do If You Owe CERB Taxes

4. If your income goes up or down

How much you earn is an integral part of your finances. Lenders use it to help determine if they will grant you the credit you’ve applied for or not. Your income allows you make your debt payments, run your household, and enjoy your life. If your income goes down and you’re no longer able to make your contractual payments, your partial and skipped payments are reflected on your credit report. The amount of your income, however, is not reported.

7 More Things That Are Not on Your Credit Report

How to improve a bad credit rating

Improving a bad credit rating takes time. If there is negative, yet correct, information in your credit file it will not be removed. Resist the temptation to fall for an ad or offer that promises otherwise. Everyone can fix their own credit themselves, but it takes time and steady effort. As you take steps to rebuild your credit , that negative information being reported on your file will become less and less important. Once it has been there six to seven years, it will fall off entirely. Here are steps you can take right now:

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Make your payments on time

Catch up missed payments and start making payments on all of your credit accounts on time every month. Use a realistic budget to determine how much you can afford to pay while not leaving yourself short on other obligations and routine expenses. Set up either automatic payments through your online banking that coincide with your paydays or use calendar reminders so that you remember when to make your payments manually.

Common Credit Score Problems and How to Fix Them

Apply for a secured credit card

A secured credit card that reports your use and payments to the credit bureaus is an excellent way to start building a positive track record, as long as you make all of your payments as agreed. Start by saving up a lump sum of money equivalent to the credit limit you want. Most secured cards have fairly low limits, $500 to $1,000, and the amount of your limit is held by the credit card company for a year or two in case you don’t make your payments.

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Use the card as you normally would and be absolutely sure that you make at least your minimum payment every month. If you need a credit card, this can be a good option if you have bad credit. If you can’t save up your security deposit, look to sell some items to generate a quick lump sum you can use.

Government of Canada Credit Card Comparison Tool

Take on a cell phone contract

A cell phone contract can feel like an excessive expense when you’re struggling to make ends meet. However, a cell phone on contract is one of the fastest ways to rebuild a credit rating – and one of the quickest ways to destroy it if you don’t make all of your payments in full as agreed.

The plan you sign up for doesn’t need to be big and you don’t have to be the one using the phone. The bill must come in your name but a basic plan on a contract for calling and texting is all that is required.

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Rebuilding a Credit Rating With a Cell Phone Contract

Don’t make ongoing applications for new credit

Applying for new credit on a routine basis hurts your credit score and rating. Every time you apply it is noted on your credit report because shopping for additional credit impacts your ability to make payments on all of your accounts. After checking your own credit report and taking steps to bring all accounts up to date, wait a minimum of six months before applying for new credit. It will take that long for a future lender to see that you made improvements to your financial situation.

Steps to Fix Your Credit for Free in Canada

The bottom line on fixing a bad credit rating

As you are working to fix your credit, remember to contribute regularly to an emergency savings account. Having money set aside to deal with emergencies means that a crisis won’t erase all of the progress you made to pay down your debts. If you need a credit card immediately, you may need to ask your employer for another way to manage ongoing work expenses. Many people choose not to have a credit card, or the card they do have hovers around its limit. Others don’t have the cash available to apply for a secured card. While a pre-paid credit card doesn’t work in quite the same way, it also must be obtained with a lump sum of money. Unless having your own credit card is a condition of your employment, your employer will need to find a way to accommodate your request.

Related reading:

Are You Missing Out If You Don’t Have a Credit Card?

How to Rebuild Your Credit Rating After Bankruptcy

Common Questions About Debt Consolidation Explained

Scott Hannah is president of the Credit Counselling Society, a non-profit organization. For more information about managing your money or debt, contact Scott by email , check nomoredebts.org or call 1-888-527-8999.


Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday by subscribing to our Sunrise newsletter here .


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    How to Lower Credit Card Consolidation Interest Rates: 4 Options https://signiumtyler.com/how-to-lower-credit-card-interest-rates-4-options/ Mon, 06 Dec 2021 01:16:57 +0000 https://signiumtyler.com/?p=289 Credible Rating Credible lender credit card consolidation ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. 9.95% – […]]]>


    Credible Rating



    Credible lender credit card consolidation ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    9.95% – 35.99% APR
    $2,000 to $35,000** 550 2, 3, 4, 5*

    • Fixed APR:

      9.95% – 35.99% APR

    • Variable APR:
      N/A
    • Min. credit score:
      550
    • Loan amount:
      $2,000 to $35,000**
    • Loan terms (years):
      2, 3, 4, 5*
    • Time to fund:
      As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
    • Fees:
      Origination fee
    • Discounts:
      Autopay
    • Eligibility:
      Available in all states except CO, IA, HI, VT, NV NY, WV
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Loan servicer:
      Avant
    • Loan Uses:
      Debt consolidation, emergency expense, life event, home improvement, and other purposes
    • Min. Income:
      $1,200 monthly


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full credit card consolidation


    6.79% – 17.99% APR
    $10,000 to $50,000 700 3, 4, 5, 6

    • Fixed APR:

      6.79% – 17.99% APR

    • Variable APR:
      N/A
    • Min. credit score:
      700
    • Loan amount:
      $10,000 to $50,000
    • Loan terms (years):
      3 to 6
    • Time to fund:
      Next business day
    • Fees:
      No prepayment penalty
    • Discounts:
      None
    • Eligibility:
      Available in all 50 states
    • Customer service:
      Phone
    • Soft credit check:
      Yes
    • Min. Income:
      Does not disclose
    • Loan Uses:
      Debt consolidation, home improvement, self-employment, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    4.99% – 35.99% APR
    $5,000 to $35,000 600 2, 3, 4, 5

    • Fixed APR:

      4.99% – 35.99% APR

    • Variable APR:
      N/A
    • Min. credit score:
      600
    • Loan amount:
      $2,000 to $50,000
    • Loan terms (years):
      2, 3, 4, 5
    • Time to fund:
      As soon as 1 – 3 business days after successful verification
    • Fees:
      Origination fee
    • Discounts:
      None
    • Eligibility:
      Available in all states except DC, IA, VT, and WV
    • Customer service:
      Phone
    • Soft credit check:
      Yes
    • Loan servicer:
      Best Egg and Blue Ridge Bank
    • Min. Income:
      None
    • Loan Uses:
      Credit card refinancing, debt consolidation, home improvement, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    5.99% – 24.99% APR
    $2,500 to $35,000 660 3, 4, 5, 6, 7

    • Fixed APR:

      5.99% – 24.99% APR

    • Min. credit score:
      660
    • Loan amount:
      $2,500 to $35,000
    • Loan terms (years):
      3, 4, 5, 6, 7
    • Time to fund:
      As soon as the next business day after acceptance
    • Fees:
      Late fee
    • Discounts:
      None
    • Eligibility:
      Available in all 50 states
    • Customer service:
      Phone
    • Soft credit check:
      Yes
    • Loan Uses:
      Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    7.99% – 29.99% APR
    $10,000 to $50,000 Not disclosed by lender 2, 3, 4, 5

    • Fixed APR:

      7.99% – 29.99% APR

    • Min. credit score:
      Does not disclose
    • Loan amount:
      $10,000 to $50,000
    • Loan terms (years):
      2, 3, 4, 5
    • Time to fund:
      As soon as 2 business days
    • Fees:
      Origination fee
    • Discounts:
      No
    • Eligibility:
      Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WY
    • Customer service:
      Phone
    • Soft credit check:
      Yes
    • Min. Income:
      None
    • Loan Uses:
      Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    7.04% – 35.89% APR
    $1,000 to $40,000 600 3, 5

    • Fixed APR:

      7.04% – 35.89% APR

    • Min. credit score:
      600
    • Loan amount:
      $1,000 to $40,000
    • Loan terms (years):
      3, 5
    • Time to fund:
      Usually takes about 2 days
    • Fees:
      Origination fee
    • Discounts:
      None
    • Eligibility:
      Available in all 50 states
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Loan servicer:
      LendingClub Bank
    • Min. Income:
      None
    • Loan Uses:
      Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    9.99% – 35.99% APR
    $2,000 to $36,500 580 2, 3, 4

    • Fixed APR:

      9.99% – 35.99% APR

    • Min. credit score:
      580
    • Loan amount:
      $2,000 to $36,500
    • Loan terms (years):
      2, 3, 4
    • Time to fund:
      As soon as the next business day
    • Fees:
      Origination fee
    • Discounts:
      Autopay
    • Eligibility:
      Available in all states except NV and WV
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Min. Income:
      $20,000
    • Loan Uses:
      Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    2.49% – 19.99% APR
    $5,000 to $100,000 660 2, 3, 4, 5, 6, 7
    (up to 12 years for home improvement loans)

    • Fixed APR:

      2.49% – 19.99% APR

    • Min. credit score:
      660
    • Loan amount:
      $5,000 to $100,000
    • Loan terms (years):
      2, 3, 4, 5, 6, 7*
    • Time to fund:
      As soon as the same business day
    • Fees:
      None
    • Discounts:
      Autopay
    • Eligibility:
      Available in all states except RI and VT
    • Customer service:
      Phone, email
    • Soft credit check:
      No
    • Loan servicer:
      LightStream
    • Min. Income:
      Does not disclose
    • Loan Uses:
      Credit card refinancing, debt consolidation, home improvement, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    6.99% – 19.99% APR1
    $3,500 to $40,0002 660

    (TransUnion FICO®️ Score 9) 3, 4, 5, 6, 7

    • Fixed APR:

      6.99% – 19.99% APR1

    • Min. credit score:
      660

      (TransUnion FICO®️ Score 9)

    • Loan amount:
      $3,500 to $40,0002
    • Loan terms (years):
      3, 4, 5, 6
    • Time to fund:
      Many Marcus customers receive funds in as little as three days
    • Fees:
      None
    • Discounts:
      Autopay
    • Eligibility:
      Available in all 50 states
    • Customer service:
      Phone
    • Soft credit check:
      Yes
    • Loan servicer:
      Goldman Sachs
    • Min. Income:
      $30,000
    • Loan Uses:
      Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    18.0% – 35.99% APR
    $1,500 to $20,000 None 2, 3, 4, 5

    • Fixed APR:

      18.0% – 35.99% APR

    • Min. credit score:
      None
    • Loan amount:
      $1,500 to $20,000
    • Loan terms (years):
      2, 3, 4, 5
    • Time to fund:
      As soon as the same day, but usually requires a visit to a branch office
    • Fees:
      Origination fee
    • Discounts:
      None
    • Eligibility:
      Must have photo I.D. issued by U.S. federal, state or local government
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Min. Income:
      Does not disclose


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    5.99% – 17.99% APR
    $600 to $50,000
    (depending on loan term) 660 1, 2, 3, 4, 5

    • Fixed APR:

      5.99% – 17.99% APR

    • Min. credit score:
      660
    • Loan amount:
      $600 to $50,000*
    • Loan terms (years):
      1, 2, 3, 4, 5
    • Time to fund:
      2 to 4 business days after verification
    • Fees:
      None
    • Discounts:
      None
    • Eligibility:
      Does not disclose
    • Customer service:
      Phone, email
    • Soft credit check:
      No
    • Min. Income:
      Does not disclose
    • Loan Uses:
      Debt consolidation, home improvement, transportation, medical, dental, life events


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    6.95% – 35.99% APR
    $2,000 to $40,000 640 3, 5

    • Fixed APR:

      6.95% – 35.99% APR

    • Min. credit score:
      640
    • Loan amount:
      $2,000 to $40,000
    • Loan terms (years):
      3, 5
    • Time to fund:
      As soon as one business day
    • Fees:
      Origination fee
    • Discounts:
      None
    • Eligibility:
      Available in all states except IA, ND, WV
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Min. Income:
      None
    • Loan Uses:
      Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    4.74% – 19.28% APR10
    $5,000 to $100,000 Does not disclose 2, 3, 4, 5, 6, 7

    • Fixed APR:

      4.74% – 19.28% APR10

    • Min. credit score:
      Does not disclose
    • Loan amount:
      $5,000 to $100,000
    • Loan terms (years):
      2, 3, 4, 5, 6, 7
    • Time to fund:
      3 business days
    • Fees:
      None
    • Discounts:
      Autopay
    • Eligibility:
      Available in all states except MS
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Min. Income:
      Does not disclose
    • Loan Uses:
      Solely for personal, family, or household uses


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    8.93% – 35.93% APR7
    $1,000 to $50,000 560 3 to 5 years 8

    • Fixed APR:

      8.93% – 35.93% APR7

    • Min. credit score:
      560
    • Loan amount:
      $1,000 to $50,000
    • Loan terms:
      3 to 5 years 8
    • Time to fund:
      Within one day, once approved9
    • Loan types:
      Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
    • Fees:
      Origination fee
    • Discounts:
      Autopay
    • Eligibility:
      A U.S. citizen or permanent resident; not available in DC, SC, WV
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    5.94% – 35.97% APR
    $1,000 to $50,000 560 2, 3, 5, 6

    • Fixed APR:

      5.94% – 35.97% APR

    • Min. credit score:
      560
    • Loan amount:
      $1,000 to $50,000*
    • Loan terms (years):
      2, 3, 5, 6
    • Time to fund:
      Within a day of clearing necessary verifications
    • Fees:
      Origination fee
    • Discounts:
      Autopay
    • Eligibility:
      Available in all states except West Virginia
    • Customer service:
      Email
    • Soft credit check:
      Yes
    • Min. Income:
      Does not disclose
    • Loan Uses:
      Debt consolidation, credit card refinancing, home improvement, and other purposes


    Credible Rating



    Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


    4.37% – 35.99% APR4
    $1,000 to $50,0005 580 3 to 5 years4

    • Fixed APR:

      4.37% – 35.99% APR4

    • Min. credit score:
      580
    • Loan amount:
      $1,000 to $50,0005
    • Loan terms (years):
      3 to 5 years4
    • Time to fund:
      As fast as 1 business day6
    • Fees:
      Origination fee
    • Discounts:
      None
    • Eligibility:
      Available in all 50 states
    • Customer service:
      Phone, email
    • Soft credit check:
      Yes
    • Min. Income:
      $12,000
    • Loan Uses:
      Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes

    Compare rates from these lenders without affecting your credit score. 100% free!
    Compare Now

    All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | 10SoFi Disclosures | Read more about Rates and Terms


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    Orioles Funding Examines The Best Ways To Get Out Of Credit Card Consolidation Debt https://signiumtyler.com/orioles-funding-examines-the-best-ways-to-get-out-of-credit-card-debt/ Fri, 12 Nov 2021 08:00:00 +0000 https://signiumtyler.com/orioles-funding-examines-the-best-ways-to-get-out-of-credit-card-debt/ Advertising Disclosure: We receive referral commissions from partners. Learn more Orioles Funding knows that paying off your unsecured debt is one of the best investments you can make. An Orioles Funding Consolidation Loan allows you to pay less interest, get out of debt faster, and start focusing on other goals … like building a savings […]]]>


    Advertising Disclosure: We receive referral commissions from partners. Learn more

    Orioles Funding knows that paying off your unsecured debt is one of the best investments you can make. An Orioles Funding Consolidation Loan allows you to pay less interest, get out of debt faster, and start focusing on other goals … like building a savings account, fund for college or a great family vacation. We are real people who want to improve your life. Live a debt-free life with an Orioles Financing Review.

    credit card consolidation provide a way to manage all of your expenses without having to use paychecks. However, unpaid credit card bills have high interest rates, making your financial situation more difficult than you might have imagined.

    These days, every other individual pays off credit card debt at the end of the month. While it’s common to be confused, we’re here to walk you through various strategies you can use to help reduce your credit card debt. Read below to find out how to balance your financial situation credit card consolidation

    1. Be aware of your budget

    If you don’t know your budget, this is the first step you need to focus on. Track your income, compare it to your expenses, and understand how it attacked your credit card debt.

    You can always find a spreadsheet online or create a Google sheet to help you track your finances. You can calculate how much you earn and what you spend each month. You can add your minimum payments and keep track of them throughout. In turn, you will be constantly aware of your winnings and where you are spending them.

    Orioles Funding Examines 2 Best Ways To Get Out Of Credit Card Debt

    2. Keep track of your debt

    If you want to attack your credit card debt, you must first know your debts. Calculate exactly how much you owe for each month. Also, be aware of the amount of interest charged by your car and this will be the key to determining your unpaid debts. Once you have learned about these credit card details, you will be ready to determine your credit card debt processing plan. Then you will take the next step of paying off your credit card debt.

    3. Choose your debt reduction action plan

    Once you know your budget and your debt, you are ready to plan your reduction strategy. The two strategies you can opt for are:

    The snowball method

    This method targets the smallest current balance on your credit card. You can assign the minimum payment to your other cards, but you should also use whatever is available in your monthly budget to pay off the lowest overall debt on any of your credit cards.

    After you have covered your unpaid debts that had the smallest balance, you can use the same budget and apply it to the next credit card that has the smallest payment of all.

    The avalanche method

    The avalanche method is quite different from the snowball method. The snowball tackles the smallest debt, while the avalanche method aims to reduce your credit card debt by tying up the card that has the highest annual percentage rate (APR), in terms of your credit card debt. simpler, the interest rate.

    Choose a method that works best for you

    Either of the two methods can help you pay off your credit card debt. However, you need to have a full understanding of your debt and credit card balances. Another way to deal with unpaid bills is to use both strategies and switch between the two. It helps when your available budget and motivation fluctuate.

    4. Automate your payments

    Whichever course of action you choose below, automating your payments is necessary. It helps you stay within your monthly budget to pay off your credit card debt. Plus, as you automate your payments, you can rearrange your payment dates so that they are realigned with your paychecks.

    5. Look for other ways to help you pay off your credit card debt.

    After you’ve finished calculating your budget, if you’ve discovered that you can’t reduce your unpaid debts, or that you have too many accounts, you may want to research other sources. Management can become difficult with our busy lives, which is why we recommend many strategies, some of which are as follows.

    Debt advisory services

    This service can be used from the comfort of your home. A debt counselor will assess your income and overall debt to help you develop a strategy for achieving a zero balance. They also have resources and connections and can leverage them to get you lower than existing settlements or interest rates.

    Balance Transfer Credit Cards

    This method is very useful for some people. However, there are things to consider before applying for one. These items include transfer fees, credit card creditworthiness, and more. Most of these cards will provide their APR, thus moving your balance from a high APR to a low APR, will help you lower the interest rate, and therefore pay less each month.

    Debt Consolidation Loans

    You can also go for a debt consolidation loan. This will help you pay off your credit card loans and rearrange your finances to pay them off all at once. You can also rearrange it to pay off your debt at lower interest rates. Plus, to apply, you need a strong credit card score and earn interest rates that are lower than your card’s APR.

    6. Work towards a sustainable credit lifestyle

    Make a habit of being aware of your credit problems. Often times, people just check their credit card debt when a problem arises. As you work towards paying off your debts, it is best to understand sustainable and healthy ways for your credit card payment. As a result, you won’t get stuck in a credit crunch and you will help build a strong credit rating, in case you ever need a loan.

    7. Frozen or locked accounts

    The key to debt reduction is to delay your purchase so that there is a new addition to the balance. To avoid overspending, you can freeze or lock your accounts. In this case, your account will remain open but you will not be able to buy anything.

    This will benefit three elements of your credit score, which are as follows:

    • Credit Utilization Rate: This is the ratio of your total debt divided by your credit card limit.
    • Average Account Age: This is the average length of time your account is open and it increases each month.
    • Your credit mix: This is the number of different lines you have opened and remains high if you have many credit accounts.

    Debthunch review


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    How do we refinance $ 14,000 in credit card consolidation debt? https://signiumtyler.com/how-do-we-refinance-14000-in-credit-card-debt/ Tue, 09 Nov 2021 08:00:00 +0000 https://signiumtyler.com/how-do-we-refinance-14000-in-credit-card-debt/ Q. We want to refinance $ 14,000 in credit card debt. How can we do that? – drown there A. Congratulations on your journey to being free from credit card consolidation debt. How you consolidate your debt will depend on your overall debt amount, your credit rating, and other factors, such as your payment history. […]]]>

    Q. We want to refinance $ 14,000 in credit card debt. How can we do that?

    – drown there

    A. Congratulations on your journey to being free from credit card consolidation debt.

    How you consolidate your debt will depend on your overall debt amount, your credit rating, and other factors, such as your payment history.

    Consolidating your credit card debt works if the new debt has a lower Annual Percentage Rate (APR) than you currently have, said Betty Thomas, Certified Financial Consultant and Certified Financial Planner at Peapack Private Wealth Management in New York. Providence.

    The move could lower your interest charges, make payments more manageable, and potentially shorten the repayment period, she said.

    One option to consider is a debt consolidation loan, also known as a personal loan. It’s an opportunity to consolidate the total amount of credit card debt into one loan, Thomas said.

    “You would have a fixed monthly payment based on the interest rate and the length of the loan,” she said. “At the end of the loan term, the debt would be paid off. This would save money on interest charges credit card consolidation

    Thomas said the average interest rate charged on credit cards is around 16%, so the rate on a consolidation loan should be lower.

    It is important to know that the lender can determine the interest rate based on the length of the loan you are applying for and your credit rating. Therefore, knowing your credit score is important, she said. The better your credit score, the better the interest rates available to you.

    You can check your scores for free once a year at AnnualCreditReport.com.

    Another option is a balance transfer to a credit card that offers an introductory 0% APR.

    “These offers are generally short term, such as 6 to 18 months and there might be a balance transfer fee,” Thomas said. “Transferring your debt to a 0% card would give you the ability to pay off the debt without interest. “

    When transferring debt, remember that you can only transfer up to the credit limit offered by the card, she said. If the credit limit is not enough to cover the amount you want to refinance, you will need to research other options for your credit card balance.

    “The caveat against these offers is that if you are unable to pay the balance during the introductory period, accrued interest would be due and any remaining balance would be subject to a higher interest rate,” he said. she declared. “Again, you should have a good or a great credit score when looking for this type of deal.”

    Email your questions to Ask@NJMoneyHelp.com.

    Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com‘s weekly electronic newsletter.



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    How do we refinance $ 14,000 in credit card debt? https://signiumtyler.com/how-do-we-refinance-14000-in-credit-card-debt-2/ Tue, 09 Nov 2021 08:00:00 +0000 https://signiumtyler.com/how-do-we-refinance-14000-in-credit-card-debt-2/ Q. We want to refinance $ 14,000 in credit card debt. How can we do that? – drown there A. Congratulations on your journey to being free from credit card debt. How you consolidate your debt will depend on your overall debt amount, your credit rating, and other factors, such as your payment history. Consolidating […]]]>

    Q. We want to refinance $ 14,000 in credit card debt. How can we do that?

    – drown there

    A. Congratulations on your journey to being free from credit card debt.

    How you consolidate your debt will depend on your overall debt amount, your credit rating, and other factors, such as your payment history.

    Consolidating your credit card debt works if the new debt has a lower Annual Percentage Rate (APR) than you currently have, said Betty Thomas, Certified Financial Consultant and Certified Financial Planner at Peapack Private Wealth Management in New York. Providence.

    The move could lower your interest charges, make payments more manageable, and potentially shorten the repayment period, she said.

    One option to consider is a debt consolidation loan, also known as a personal loan. It’s an opportunity to consolidate the total amount of credit card debt into one loan, Thomas said.

    “You would have a fixed monthly payment based on the interest rate and the length of the loan,” she said. “At the end of the loan term, the debt would be paid off. This would save money on interest charges.

    Thomas said the average interest rate charged on credit cards is around 16%, so the rate on a consolidation loan should be lower.

    It is important to know that the lender can determine the interest rate based on the length of the loan you are applying for and your credit rating. Therefore, knowing your credit score is important, she said. The better your credit score, the better the interest rates available to you.

    You can check your scores for free once a year at AnnualCreditReport.com.

    Another option is a balance transfer to a credit card that offers an introductory 0% APR.

    “These offers are generally short term, such as 6 to 18 months and there might be a balance transfer fee,” Thomas said. “Transferring your debt to a 0% card would give you the ability to pay off the debt without interest. “

    When transferring debt, remember that you can only transfer up to the credit limit offered by the card, she said. If the credit limit is not enough to cover the amount you want to refinance, you will need to research other options for your credit card balance.

    “The caveat against these offers is that if you are unable to pay the balance during the introductory period, accrued interest would be due and any remaining balance would be subject to a higher interest rate,” he said. she declared. “Again, you should have a good or a great credit score when looking for this type of deal.”

    Email your questions to Ask@NJMoneyHelp.com.

    Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com‘s weekly electronic newsletter.



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    My Big Mistake When Paying Off Credit Card Debt – And How To Avoid It https://signiumtyler.com/my-big-mistake-when-paying-off-credit-card-debt-and-how-to-avoid-it/ Mon, 01 Nov 2021 07:00:00 +0000 https://signiumtyler.com/my-big-mistake-when-paying-off-credit-card-debt-and-how-to-avoid-it/ I clicked on “send payment” and felt free. It was January 2021. I was sitting in my apartment in Brooklyn, New York, looking at the credit card statements on my laptop. After 10 months of budgeting, I could afford to finish paying off my $ 15,000 debt – my highest balance since 2010, when I […]]]>

    I clicked on “send payment” and felt free.

    It was January 2021. I was sitting in my apartment in Brooklyn, New York, looking at the credit card statements on my laptop. After 10 months of budgeting, I could afford to finish paying off my $ 15,000 debt – my highest balance since 2010, when I opened my first credit card.

    When I was 18, my mother warned me, “It’s only for emergencies. I defined “emergencies” loosely, like charging my brother’s limo for the bachelor party or buying a suit for work.

    The author on the New York Stock Exchange interviewing Andy Pujol, founder and CEO of nonprofit Building Homes for Heroes.

    Brandon gomez

    I’m not alone. Americans’ debt, mostly on credit cards, reached $ 998.4 billion in July, according to the Federal Reserve. Perhaps the pandemic was a wake-up call: Last year, Americans paid off a record $ 83 billion in credit card debt, according to a study by personal finance site WalletHub.

    Fortunately, I am among them. But instead of sipping on my party mezcal, I regretted a huge mistake: by paying my debt, I completely stopped using my cards, causing one of my two accounts to be closed “due to inactivity”.

    It sounds trite, but it has had consequences.

    How I paid off my $ 15,000 credit card debt

    At first, I was looking for simple solutions.

    My bank did not offer any refinancing service, so i applied for a debt consolidation card online to collect my debt in one low interest monthly payment. But my balance was too high, and the word “refused” flashed on my screen.

    Then the pandemic struck. Unprepared for further financial downturns, I wrote a strict budget. I couldn’t make more money, but I could cut back.

    First, I put $ 4,000 of my $ 5,000 emergency fund on my debt – a strategy endorsed by personal finance expert Dave Ramsey, as CNBC Make It noted in 2018.

    My federal student loans were forborne, which meant my monthly payments were suspended, along with all accrued interest. So I rebudgeted, sending my prepandemic student loan payments to my credit card debt instead..

    Add my first two government stimulus checks, totaling $ 1,800, and my debt balance fell to $ 5,950 in three easy steps.

    The author keeps his friend Charlie’s puppy to earn extra money.

    Brandon gomez

    I continued to pay the minimum for my cards, $ 419 per month. After 10 months, my debt had fallen to $ 1,760. Cash paid the difference: extra weekends to keep dogs and sell old goods.

    In January, my debt was paid. Two weeks later, the bank that represented one of my cards sent me a letter: “Unfortunately, we have made the decision to close your credit card account.

    My unexpected mistake – and its consequences

    I thought I had done everything right.

    I didn’t want to increase my debt while paying it off, so I didn’t use my card until I hit a balance of $ 0. But my bank marked the account “inactive” and terminated my line of credit without notice.

    My credit rating went from “good” to “bad” overnight. How did I not know?

    “If you have underutilized credit, which means you don’t invest anything in it forever, they can sometimes close it,” said Tim Maurer, a member of the CNBC Council of Financial Advisors. “It can actually hurt your credit report. “

    This is because of a measure called the debt-to-credit ratio. It is the amount of credit used versus what is available. If what’s available goes down, your ratio goes up, which hurts your score.

    My available credit was halved when my card was closed.

    “Inactivity is the most common reason for lowering credit limits,” says Ted Rossman, senior credit card analyst at the personal finance website Bankrate.We’ve seen it in past recessions, when lenders get nervous, customers don’t want to pay them back. “

    In 2008, the Federal Reserve found that 20% of banks reduced the credit limits of major borrowers. This happened again during the pandemic, according to data from surveys of senior Federal Reserve loan officers.

    I spoke with three customer service reps to reopen my card. Everyone told me that I should reapply for a new card. With a “bad” credit rating, I was less likely to get approved.

    Not worth trying, as I still had my other credit card. But since experts recommend using 30% or less of your available credit, and now I have much less available credit, I have a strict spending limit, which I constantly monitor.

    How to properly use your credit, even when paying off your debt

    There is no foolproof solution to avoiding my situation other than avoiding debt in the first place. – but you can keep a few tips in mind.

    Rossman’s recommended method of keeping credit checkers at bay is surprisingly simple. “The occasional use of a card, even for small purchases that you pay off immediately, can help you avoid unwanted drops,” he says.

    But depending on your bank, you may need to use this card more than “occasionally”. Last year, Rossman says, he received a letter stating that one of his credit limits had been cut in half because he rarely used more than 10% of his limit. “I used it, but not a lot,” he says.

    Quickly, Rossman called his bank’s customer service team and asked for his old limit. Fortunately, the bank said yes, but it won’t happen every time, Rossman says.

    Do not use more than 30%. Always use more than 10%. Finding that perfect place is difficult. Doing it regularly seems impossible, but I stick to it.

    Today I still have an active credit card. I set limits on the monthly fees and pay my statement on time and in full. My credit rating is up 20 points since the start of 2021.

    I’m using my repayment budget – the $ 419 per month and my student loan payments, which are still overdue – to replenish my emergency fund.

    There will certainly be another bump in the road ahead. When that happens, I’ll take a deep breath and start my research again.

    Until then, I’ll be feasting on mezcal.

    Register now: Get more information about your money and career with our weekly newsletter

    Don’t miss:

    Overdraft fees hit a new record this year: here’s how to avoid them

    Here’s how much money you would have if you invested $ 1,000 in Domino’s pizza 10 years ago


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