When it comes to common consumer debts like credit cards and personal loans, two of the most popular ways to lower your rate include balance transfers and debt consolidation loans. They both have advantages and disadvantages, but you can make an educated decision once you look at the fees to borrow and how your debt is set up currently.Transferring a balance using a credit card is easy, and ideally you can pay 0% interest on your debt (at least for a limited time).It simply depends on your current financial situation.If you are trying to decide whether or not debt consolidation can help you save money, you should contact a financial professional who can help you crunch the numbers.That helps stop the bleeding: your interest costs disappear, and 100% of each payment goes towards reducing your loan balance.Credit card balance transfers are most attractive when you know you will pay off debt quickly.But the unfortunate reality is that scores of people find themselves in significant personal and household debt by the age of 30. No matter how bad your current financial situation is, there is hope.If you take the right steps today, you can still reach your financial goals and find true financial independence.
Fees: in many cases, you’ll have to pay a fee (it might be roughly 3% of the amount you transfer, or a flat dollar amount – whichever is greater).There are many reasons why people consider debt consolidation.However, it is important to understand that there is no easy out when it comes to debt.Paying Down Debt The first major step a person must take toward gaining control of their personal finances is deciding to eliminate all personal debts. You simply have to be willing to cut expenses, which may mean less eating out, less entertainment, and fewer shopping trips each month, and then you direct this extra cash flow toward paying down your debts.Now, the most powerful variable in the world of personal finances is interest rates.