Consolidating credit card debt into
We are a nation of people in debt, and it doesn't seem to be getting any better.According to data released by the Federal Reserve this February, Americans' revolving, non-mortgage credit increased in December 2014 to .3 trillion -- while non-revolving credit (such as student and auto loans) rose to .42 trillion, as reported by USA Today.P2P Credit's interest rates start at 6.38% - and P2P Credit specializes in debt consolidation loans.You don't have to have perfect credit (P2P loans are even available for people with bad credit) and applying for a loan is easy.Whether you owe student loans or carry a balance on your credit cards, the impact of debt can be felt in many areas of your life.
(The advantage comes from the lower interest rate.) However, if you are carrying credit card balances at high interest rates, it makes sense to consolidate as much of your credit card debt as possible into a personal loan.If you are struggling to pay off multiple credit cards, consolidating your debt may allow you to reduce your interest rates and lower your monthly payment.However, a lower monthly payment can mean a longer repayment term and more interest paid over the life of the loan.In the best-case scenario, the consumer would open the card during a promotion at a “teaser rate.” This rate is low, sometimes zero percent, and lasts only for a promotional period, say 12 months.
The goal is then to pay down as much as possible before the period ends and the rate jumps to a much higher level.In recent years, balance transfers have become a less realistic option.