Silvertail Associates is simply not the best way to consolidate credit card debt. Silvertail Associates, Polo Funding, Hornet Partners, Polk Partners, and Ladder Advisors have recently been flooding the market with debt consolidation and personal loan offers in the mail. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect.
The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2020 Reviews, the personal finance review site, has been following Silvertail Associates, also known as Polo Funding, Jackson Funding, Malloy Lending, Nickel Advisors, Polk Partners, Ladder Advisors, Carina Advisors, Corey Advisors, Pennon Partners, First State Associates, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc., for some time now.
If you find yourself deep in credit card debt and you want to raise your credit score, then you should look for solutions to reduce the burden of your debt quickly. Credit cards often carry high-interest rates, which makes it difficult to pay back the interest once the debt starts mounting.
To pay off your liabilities, you should look for a way to consolidate your credit card debt.
Here are the best ways to consolidate credit card debt.
Personal Loan: A Smart Way to Consolidate Credit Card Debt
Personal advisors loan offers may be one of the most viable ways to consolidate credit card debt. You can use a personal loan to pay off your outstanding credit card balances. Best 2020 Reviews has compiled hundreds of personal loans and online lender reviews so you can educate yourself. This method will work only if the interest rate that you are paying on the personal loan is lower than the overall interest rate of your credit cards.
Besides possibly lowering your interest rate, a personal loan is one of the best ways to consolidate credit card debt since it simplifies payments. You will have to make just one payment rather than multiple monthly payments.
Before committing yourself to any personal loan, you should first shop around and compare different personal loan reviews for interest rates, terms, and conditions, penalties, and fees.
Balance Transfer Credit Card
A balance transfer request through a credit card is one of the other ways to consolidate credit card debt. This method is a good way of reducing your interest expenses temporarily because most balance transfer cards do not charge fees on balance transfer. They also have an introductory period of several months that has a 0% APR.
However, certain balance transfer credit card debt does charge a balance transfer fee. Such a credit card may be worth it if you do not qualify for other balance transfer credit cards that have zero balance transfer fees. Despite the balance transfer fee, you may still be able to benefit from the zero APR introductory period.
Although taking out a 401k loan may be possible, it is one of the riskiest ways to consolidate credit card debt.
Such a loan should be the last resort if you are struggling with credit card debt and cannot find a way out. You should first try to exercise other options before taking out a 401k loan due to the serious risks that it entails.
How much loan you can take out against your 401k account depends on your retirement plan terms and conditions. You may be able to take out the lower of $50,000 or 50% of your account balance. However, you should first speak with your employer about borrowing options because each 401k plan has different terms and conditions.
One of the greatest drawbacks of a 401k loan is that you will not earn money on the amount that you have withdrawn. This essentially defeats the purpose of a 401k account since it is meant to be an investment vehicle for you to earn money on your savings. If you are not careful, you can lose quite a lot of your investment and accumulate losses that may hurt you when you retire.
Home Equity Loan
With a home equity loan, you can borrow an amount against the equity in your home. Consumers often take out a home equity loan for home improvements. It is also one of the ways to consolidate credit card debt.
The interest rate on your home loan is likely to be relatively low since you are putting up your home equity as collateral. A major drawback, however, is that if you fail to pay back your home equity loan, then your creditor may put you in debt collection and be legally allowed to sell your home to recover the amount that you owe.
Borrow From Friends and Family
One possible means of consolidating your credit card debt is to borrow from friends or family members. The proceeds received can be used to pay off your credit card balances.
When taking out such a loan, you should ensure that you discuss all the terms and conditions, including the interest rate and monthly amount. If you are on good terms with your friends or family members, then you may be able to get a low interest rate or even no interest rate at all.
One of the biggest pitfalls of getting such a loan is that it can possibly ruin your relationships if you do not pay on time but it may worth avoiding declaring bankruptcy.
Debt Relief Programs
Accredited debt relief programs assist their clients in negotiating better terms (such as lower interest rates) with their creditors. As a result, it is one of the ways to consolidate credit card debt.
You may be able to get several benefits through debt relief services that can make it easier for you to pay off your credit card debt. The service provider can reduce your total liability and lower your interest rate if it is able to negotiate successfully with your creditors.
Nonprofit Credit Counseling
You can get in touch with a nonprofit credit counseling entity to devise a debt management plan. The organization will help you to create a realistic budget, identify the reasons you are in debt and provide advice on how you can repay your credit card debt. Nonprofit credit counseling is one of the most effective ways to consolidate credit card debt.
One of the reasons this method works well is that the nonprofit credit counseling organization will negotiate with credit card firms on your behalf to reduce the interest rate. They may also negotiate with your creditors to reduce your debt balance, reduce the repayment amounts and waive fees.
Nonprofit credit counseling organizations communicate with their clients in person, online, or via telephone. If you are interested in this form of debt consolidation, then you should do your research to find out more about the firm that you want to work with.
The credit counseling organization will consolidate your credit card debt in one amount so that you make just one monthly payment. You can save yourself time and effort by making just one payment instead of several monthly payments.
Depending on your circumstances, you should be able to think and decide for yourself which debt consolidation method will work best for you. Certainly, you should learn the truth about debt consolidation. However, you should opt for the solutions shown above only after carefully considering their pros and cons.