Could a P2P Loan Help You Pay Off Your Credit Card Debt?

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One of the most difficult things to deal with is credit card debt.

Let’s face it, when you have a lot of credit card debt it feels like a huge weight on your shoulders that pulls you down.  I’ve been there.  I know what it feels like when your paycheck comes in and a good portion goes back out in credit card payments that barely put a dent in your total credit card debt.

When you have a lot of credit card debt, getting rid of it is hard because you dealing with high interest rates.  A good portion of your payment every month goes toward interest, rather than reducing your principal.

This problem is compounded when you have multiple credit cards with high balances.  You are paying different interest amounts on different cards, and it can really slow your progress.

In some cases, you can help your situation with a debt consolidation loan, in which a larger loan is used to pay off several smaller loans.  The problem is that it is hard to find an unsecured loan that will pay off all of your credit card debt if you go to a more traditional bank.  Banks have been real tight with credit and they aren’t quick to give out a loan to pay off another debt without there being something to secure your loan.

A balance transfer to another credit card could be an option but only if your credit is good enough to get a low interest rate and a credit limit large enough for the transfer.  Besides, if you’re still working on building good credit card habits then opening a new credit card may not be a great idea.

So what can you do to help pay off credit card debt?

Instead of relying on a more traditional bank, or putting your home at risk through a secured home equity loan, it’s possible to see if you qualify for an unsecured loan through P2P lending.

What is P2P Lending?

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Should You Consolidate Your Credit Card Debt?

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One of the most demoralizing things in life is credit card debt.

Credit cards can be useful in helping you manage your cash flow, as well as help you build a credit history.

The flip side, though, is debt.

Credit cards can come with high interest rates, and paying them down can become a difficult exercise — and even seem futile.  Without a solid plan, and way to ease the transition, paying off your credit card debt is beyond challenging.

One way to get moving with credit card debt pay down is to consolidate your credit card debt.

How Debt Consolidation Helps

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Tackling Debt: Start with the Credit Cards

When it comes to tackling debt, it can be difficult to decide what you should tackle first.

The good news is that it doesn’t have to be a tough choice.

Start with the credit cards, and you are likely to see good results. This is because credit cards generally have high interest rates.  If you start with your credit cards, you are more likely to get rid of the highest rate debt first, and let you concentrate on other debt later.

Paying Down High Interest Debt

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