Grace Enfield, Content Writer
@grace_enfield
The average fee for debt consolidation is about 4% if you choose to get a debt consolidation loan and 3.33% if you get a balance transfer credit card. Along with these fees, you will need to consider the APR on your new loan or credit card when deciding whether debt consolidation is worth it.
The average APR for a debt consolidation loan is 14.47%. The average introductory APR for a balance transfer credit card is 0% for 13 months, followed by the regular APR. For more information, check out WalletHub’s picks for the best debt consolidation loans and the best balance transfer credit cards.
People also ask
What are the cons of debt consolidation?
The disadvantages of debt consolidation are that it's hard to get a worthwhile rate with below-average credit, not all debts are eligible, and there is a possibility of fees. There is also the danger of debt settlement services posing as debt consolidation, which can lead to significant credit-score damage.
The pros of debt consolidation outweigh the cons, but it's important to consider both sides when you're thinking about consolidating.
5 Drawbacks of Debt Consolidation
-
...
How much are fees for debt consolidation?
Fees for debt consolidation are around 4% with a debt consolidation loan and 3.33% with a balance transfer credit card, on average. The fees you need to watch out for when consolidating debt are origination fees on loans and balance transfer fees on credit cards.
Fortunately, there are personal loan options with no origination fee and balance transfer offers with no transfer fee. Balance transfer credit cards could also have annual fees, late-payment fees and foreign transaction fees, among...
read full answer by Gino Rodriguez, WriterWhat is a good percentage on a debt consolidation loan?
A good percentage on a debt consolidation loan is 4% to 9%. That's the approximate range between some of the lowest interest rates available and the average two-year personal loan interest rate based on Federal Reserve data. In general, though, an even higher debt consolidation loan interest rate can still be worth it if it's significantly lower than the rate on the existing debts you're consolidating. For example, if you're consolidating payday loans that charge...
read full answer by Gino Rodriguez, WriterDid we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertisers compensate WalletHub when you click on a link, or your application is approved, or your account is opened. Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.