Options to consolidating credit cards
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.
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.
To start the search for consolidation loans, check out Personal and Bad Credit Loans.com, 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.
After the introductory period expires, the interest rate on that account will rise to the standard rate.But before you say, “sign me up,” get to know the different methods of debt consolidation, and how they may — or may not — help you with your financial and credit goals.The idea behind a consolidation loan is to borrow enough to cover the balances on your credit cards.To find an accredited credit counseling agency, contact the National Foundation for Credit Counseling or the Financial Counseling Association of America.Yet another way to consolidate your debt is by asking a friend or family member for a loan.