If your required monthly credit card payment is higher than the monthly credit card payment in our example, or if your credit card APR is lower than the credit card APR used in our example, potential savings on interest will be reduced.The American Express Personal Loan example assumes 36 monthly payments of 7.90 on a personal loan of ,000 at an 8.98% APR.Today we are going to talk about how to consolidate credit cards by refinancing your credit card debt into a singular loan or account with a singular payment.As you might guess, this can be done in several different ways, some more dangerous than others. This is the most literal method of consolidating credit cards.With an American Express Personal Loan, quick access to money won’t be a problem, so you can take off when opportunity comes knocking.An American Express Personal Loan could help you consolidate your higher-interest credit card debt at a lower fixed interest rate with no origination fees or pre-payment penalties — so you can save.We will cover most of these and show the pros and cons of each method along with suggestions and words of caution so that you can make informed decisions and put yourself in the best financial position. In the case of balance transfers, the consumer actually takes multiple credit card balances and merges them all onto one credit card.
These types of loans are typically unsecured loans, meaning they don't require you to put down collateral to obtain the loan.
This is unlike secured loans like mortgages or a car loans, where you typically use your home or car as security for repayment of your loan - which your lender can take if you don't make your payments.
While personal loans may have higher interest rates than secured loans, they often offer lower interest rates than credit cards -- some as low as six percent, though you typically will only qualify for rates this low if you have excellent credit.
So I applaud your desire to attack this debt more aggressively, especially since it could well be that you have a higher interest rate than the one I used in this example.
An unsecured personal loan, which enables consumers to replace their minimum and variable card payments with fixed loan installments, might be a good option for you – if you can qualify for a low rate.