Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt and other types of debt.
There are several ways consumers can lump debts into a single payment.
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.
Even so, the interest rates are still typically less than the rates on credit cards. “Typically, the loan has to be paid off in three to five years,” says Harrine Freeman, CEO and owner of H. Freeman Enterprises, a credit repair and credit-counseling service in Bethesda, Md., and author of “How to Get Out of Debt.” These types of loans don’t erase the debt; they simply transfer all your debts to a different lender or type of loan.
But the countertop of your dreams is just out of reach with your original budget. From save-the-dates to booking the venue, you can get the money you need with an American Express Personal Loan to make your perfect wedding come to life.
An American Express Personal Loan could help you put the finishing touches into place. When the perfect adventure comes along, you want to jump in with both feet.
“If the principal is paid down faster [than it would have been without the loan], the balance is paid off sooner, which helps to boost your credit score,” says Freeman.
For example, say an individual with three credit cards and a total of ,000 owing at a 22.99% annual rate compounded monthly needs to pay 47.37 a month for 24 months to bring the balances to zero.These loans are usually offered by financial institutions, such as banks and credit unions; there are also specialized debt-consolidation service companies.