So, my minimum payments have gone through the roof in the last 90 days, and I’m thinking it’s time to consolidate at a lower rate.
I’ve been checking out my options, but honestly, the consolidation rates don’t seem all that much better than my credit card rates. I’m looking at rates in the mid to high teens. Is that normal?
I’ve got around $15K to consolidate, but I’d rather not drain my cash reserves by writing a check.
If you’ve got any cool ideas, I’m all ears!
-Rate Wrangler
Response from THE MONEY MINDER:
Hello There,
I understand your concern about high rates and wanting to consolidate your debt to a lower rate, especially with your minimum payments tripling in the last 90 days. It can be frustrating to find that consolidation rates are not significantly better than credit card rates, with mid to high teens being common.
Given your $15K debt consolidation goal and desire to maintain cash reserves, here’s a practical approach: First, review your budget to identify areas where you can cut costs and increase your debt repayments. Consider reaching out to your current credit card company to inquire about lower interest rates or potential debt consolidation options they may offer.
Additionally, explore other financial institutions or online lenders that specialize in debt consolidation loans. Compare their rates, terms, and fees to find the best option that suits your needs. You may also want to consider a balance transfer to a credit card with a promotional 0% APR offer, but be mindful of transfer fees and the teaser rate period.
Above all, make a commitment to stick to your repayment plan and avoid accumulating more debt. Consolidating your debt is a step in the right direction, but changing spending habits and creating a sustainable financial plan will ultimately lead to financial stability.
Best of luck with your debt consolidation journey.
THE MONEY MINDER
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