Balance transfer credit card. Chase offers one of the best balance transfer cards on the market, Chase Slate. For a full breakdown, check out WalletHub’s complete Chase Slate review. In addition, Chase Freedom and Freedom Unlimited are also good options. The two Freedom cards offer excellent rewards as well.
Home equity line of credit. A HELOC works like a credit card in that you can borrow money up to a certain amount (based on the value of your home minus your mortgage balance) whenever you want. But you are never obligated to borrow. A HELOC is secured by your home, so Chase could foreclose on you if you can’t pay back the money you borrow. APRs on Chase HELOCs range from 5.75% to 8.39%.
The advantage of using a balance transfer card for debt consolidation with Chase is that you get a 0% APR to start. If your debts are small enough, you may be able to pay them off before the regular APR kicks in. However, depending on what credit limit you get, you may not be able to consolidate all the debts that you’d like to. On Chase Slate, the balance transfers can’t exceed your credit limit (minimum of $500) or $15,000, whichever is smaller.
HELOCs have the risk of using your home as collateral, but they offer extremely low interest rates for debt consolidation. Exactly how much you can borrow depends on how much equity you have. Chase provides a calculator on their website to help customers see how much they could save with a HELOC.
A credit card consolidation loan is a good idea if it reduces the cost of your debt and allows you to repay what you owe sooner than you would otherwise. Furthermore, a credit consolidation loan is the best choice if it will save you more than the top balance transfer credit cards… read full answer.
Credit card debt consolidation loans help put all your balances in one place. But they’re not worth it unless you also get a reduced interest rate relative to what you’re currently paying. Checking with a personal loan provider to see what rates you’re pre-qualified for should give you an idea of whether you’ll actually save money if approved.
If you can qualify for a balance transfer credit card that will accommodate all of your debt and provide a 0% introductory interest rate for 12+ months, that may be a better choice. That’s easier said than done, however, so it’s a good idea to keep your options open.
Credit card consolidation loans are a good idea when they:
Save you money on interest.
Help you get out of debt sooner.
Offer a better deal than balance transfer credit cards.
If you can’t find a credit card consolidation loan that will save you money, or qualify for any good balance transfer cards, there are a few alternatives to consider. A secured personal loan or home equity loan could get you lower rates, but at the risk of losing your property/home if you default. A loan from a friend or relative could get you low rates but could put stress on your relationship. Finally, other debt solutions like settling with your creditors may be helpful.
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