Consolodating debt low interest
My view is that 0% balance-transfer cards are the way to go.
The ideal balance-transfer strategy is as follows: Open a 0% balance-transfer card with low or no balance-transfer fees, transfer your balances to the card, and then file the physical card away somewhere it's inconvenient to access.
Fail to repay a home loan, and the worst-case scenario is so much worse -- a judgment, bankruptcy, and the loss of your home through foreclosure.
This is a high-stakes way to borrow, and the low rates banks offer reflect how little risk the banks take when they write home-equity loans.
Start with Chase Slate A personal loan may be a good way to consolidate and pay off credit card debt, but it's an inherently more expensive way to pay down debt than a balance-transfer credit card.
According to data from the Federal Reserve, the average interest rate on a 24-month personal loan was just over 10% per year in February.
Notably, the card offers an eye-popping 0% introductory period that spans 21 billing cycles, or approximately 21 months.
However, the balance-transfer fee may make it less lucrative for balances that can be paid off faster, given that the 3% fee would add up to 0 on a ,000 balance transfer.
If you fail to repay a credit card or personal loan, the worst possible outcome is that a judgment in court forces you into bankruptcy.
Several banks show rates of 5% or so for 24- to 36-month personal loans for people with excellent credit.