If your credit status is excellent and/or equity in your house, you can apply for a credit card debt loan. You can trade your credit card debt for a different kind of loan to rectify your cash flow problems or simply pay off your loan. No matter what, ensure that you have a good budget and would not fall into a new credit card debt. Here are your options for the credit card debt.
- Using Home Equity
If your credit status is up to the mark, then you can consider having a cash-out refinance loan or a home equity loan. One con of using your home as a security is that you have to transfer unsecured credit card debt to a secured loan. In other words, if you fail to repay and be a defaulter, then the lender has a right to pursue collection action against you personally and you might end up losing your home too.
In order to choose this option, you can begin with:
- Calculating your minimum monthly payment for your credit card.
- Calculating your principal and interest payment on your mortgage.
- Checking the value of your house.
- Checking that your LTV ratio will be below 80%, and DTI about 45%.
- Personal Loan
Probably, the best time to tackle the credit card debt is before you end up in a lot of debt and big bills. Keep in mind that your credit score might be impacted by the amount of credit you have utilized. The higher the credit utilization ratio, the lower your credit score. A lower credit score hampers with your chances of finding a low-interest loan or a personal loan. But if you take Loans from BC-Loans.com, no matter what your credit score is, we will instantly approve your loan. Also, be at bay from all the payday loans or other bad credit personal loans as they are available at very high-interest rates and fees.
- Getting Off the Ride on Time
You do not want to mess with the credit card debt. Make sure you follow these tips on time:
- Create and maintain a budget. Put aside an emergency fund, save for the imminent future, and do not run up the credit card debt.
- Do not limit your payment to a minimum payment, it stretches out your payoff term.
- Do not max out your credit cards as it will impact your credit card score and ability to find a cheap loan in the future.
