Consolidating credit card debt into a personal loan

To start the search for consolidation loans, check out Personal and Bad Credit, which can connect you to a network of lenders and will shorten the application process.With a balance transfer credit card, you can move existing credit card balances to a new credit card account.According to IRS rules, you may borrow a maximum of 50% of your vested balance or ,000, whichever is less, and have up to five years to repay. You do have to be sure of your job’s stability, though, because if you quit or are fired, the entire balance would be due within 60 days.If you don’t pay it back, the debt will be taxed and a 10% penalty will be imposed.Review this option with your human resources department and a qualified financial planner.Nonprofit credit counseling agencies provide stressed-out debtors with another form of debt consolidation.There is usually a small monthly administration fee.

The idea behind a consolidation loan is to borrow enough to cover the balances on your credit cards.

Among the top deals now: Discover it® Balance Transfer, Wells Fargo Platinum Visa card, and the Chase Freedom Unlimited®, all of which come with a 0% intro APR for at least 15 months.

If you’re a homeowner and have accumulated equity in the property, you can take out a loan or a line of credit and use it to pay off your credit card debt.

If you accept, the agency takes over the management of your accounts.

You send one fixed payment a month to them, and it disperses the funds to your creditors.

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