Which debt-consolidating super-power will you choose?
We just came back from the movies and it got us thinking: If crushing debt was a comic-book super-villain, what kind of super-hero would you need to be to save the day? Which debt-consolidating superpower would you choose?
Letâ€™s talk about personal loans vs home equity loans vs a credit card balance transfer for debt consolidation. In a surprising way, itâ€™s a lot like deciding which superhero feels most like you. For example, if youâ€™re looking for a super suit, money and want to shoot laser beams out of your chest, youâ€™re probably going to team up with Iron Man (Tony Stark), but if youâ€™re looking for super strength, an impenetrable shield, or great hand to hand combat (skills), youâ€™re going to team up with Captain America. It just depends on what youâ€™re looking to do and accomplish, right? We know. Weird angle, but letâ€™s talk about which option might be super-suited for you.
- Personal loans trend as a very popular debt consolidation option because they are unsecured and do not require collateral from the borrower. Supermoney.com says, â€œWith a personal loan, you are given a loan from a lender that is not secured against any asset you have. It is granted based on your creditworthiness. If approved, the amount will be given along with a set of terms for repayment. In most cases, personal loans will be for periods of five years and less, have an origination fee, have interest applied and require monthly payments.â€ However, even if you have a credit score in the 600-700 range, LendingPoint may be a viable option if you decide to suit up with personal loan to defeat your debt.
- HELOC loans – If you own property, a home equity line of credit (HELOC) may allow you to borrow against the equity you have in your home. This means that you may be able to borrow more than on a credit card, opt for fixed interest, and choose the length of your loan. The flip side to HELOC is that because your home is being used as collateral it can be risky for the borrower. If you default on the loan, you may put your home at risk for foreclosure. Upside: HELOCâ€™s can put money in your account fairly quickly, if you qualify. So, I guess we could refer to this kind of loan as one the classic superheroes, Flash! This may be a good option if you have a home with equity to borrow against. Just be sure to weigh very carefully putting your home on the line.
- We like what Supermoney.com says about credit card transfers. They say, â€œCredit cards extend you a line of credit that you can use to make purchases, pull out cash advances and transfer balances. The credit line you are granted will depend on your credit score.â€ T here are a number of benefits to this method. Examples include, building your credit, keeps a record of all of your spending, and is a convenient payment method. However, there might not be a fixed interest rate. The amount of interest you pay will largely depend on the annual percentage rate offered by the lender and if youâ€™re not careful, some have secret, hidden fees just waiting to jump out and surprise you later on. Credit card transfers are typically better for smaller loan missions and allows you to pay over time. For example, a new laptop, or even a refrigerator. And if you have a card with rewards, you may be able to earn points to put towards your next travel adventure, or maybe even cash it out and apply towards monthly bills.
How do you know which one is for you? Well, that all depends on how you want to complete your debt â€“ conquering mission and which power best suits you. We canâ€™t make that important decision for you, but we hope the information here is helpful. If youâ€™re leaning towards a personal loan, let us be the first to try and help you power up! You can make affordable monthly payments and build your credit story by making on-time payments each month. As you continue to make your payments on-time, you build your credibility and your credit history. We offer decisions in minutes and funding as soon as the next business day to help make your debt – conquering dreams a reality. There is no time like the present to start your debt mission.
At LendingPoint we offer affordable personal loans from $2,000 to $25,000 with a fixed APR and simple interest.
We would love to help finance your debt consolidation mission. Apply today and talk with one of our amazing representatives about making your dreams a reality.
Iron Man and Captain America are trademarks of Marvel and The Flash is a trademark of DC Comics Warner Communications, LLC.