A high balance on one or several credit cards can hurt you with high interest rates, so many people look to refinance the debt via some form of debt consolidation loan. There are usually plenty of options, but it is important to ensure you don't go into deeper debt after you consolidate. If you consolidate your debt and continue to borrow, you will be in an even worse mess.
Balance Transfers
The easiest way to refinance is to transfer the balance from one card to another. Most credit card companies allow and encourage this, but they often charge a balance transfer fee of up to 3 percent of the balance transfer. The terms of the balance transfer will be on your credit card offer or policy letter. Credit cards tend to have very high interest rates, so this isn't always the best route.
Home Equity Loans
You could take out a home equity line of credit (HELOC) on your house that is very similar to a credit card, except that your house backs up the credit line as collateral, so your interest rate should be lower than your credit card(s). There are usually some expenses when it comes to borrowing against your home, so do the homework to figure out how much it will cost to do it.
Debt Consolidation Loans
Some banks and loan companies will offer to lend you money to pay off your credit cards. The interest rate probably won't be as good as a HELOC, but it will probably be lower than those on a credit card.
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