Most people can barely afford to make their minimum payment right now, which means they’re racking up compound interest that’s going to get out of hand if left unchecked.

Fortunately, there’s a way to pay off your credit card bill sooner and avoid drowning in interest: by consolidating your debt with the help of a free service called Credible.

Freedom from debt, faster

With a personal debt consolidation loan, you’ll be able to trade in all of your existing debts for one monthly payment at a lower interest rate.

Credible lets you comparison-shop for the best interest rates available with just a few clicks of your mouse, and in two minutes you’ll see all the lenders willing to help you pay off your debt quickly.

You can borrow up to $100,000 (with no collateral) at interest rates as low as 5.95% APR, on a repayment schedule ranging from 24 to 84 months.

Depending on how much interest you pay on your credit cards, consolidating your debt could immediately lower your monthly payment and save you thousands of dollars over the course of your loan.

For example, let’s say you owe $10,000 on a credit card with an interest rate of 16%. And let’s say your minimum monthly payment is 4% of your outstanding debt.

Since your credit is good, you qualify for a 48-month debt consolidation loan at 7% interest.

Here’s what you’ll save:

Account Type Amount of Debt Interest Rate Monthly Payment
Original Debt $10,000 16% $400 (decreasing over time)
Consolidated Debt $10,000 7% $239.46 (fixed)

Not only will you spend far less on your initial monthly payments, but you’ll also save $3,402.22 in interest over the course of your loan.

Plus you’ll be debt-free more than 8 years sooner than if you had continued on making the minimum monthly payment on your current credit card debt.

That’s a huge difference, and the money saved may go on to help you through these difficult times.

Bill Gates made a splash in 2017 when he bought $520 million worth of U.S. farmland, and he’s continued to invest since. What’s in it for Gates?

Read More

A simple way to break the cycle

Things are nerve-wracking enough as it is right now without having to worry about mounting credit card interest.

Taking out a personal debt consolidation loan is a simple way to lower your monthly payment and free yourself from debt sooner.

Even if you're just curious about your options, checking rates on Credible is a smart idea. It’s totally free, it won't hurt your credit score, and it could save you a bundle.

Are you thinking about saving? Well, stop thinking about it!

Take the change out of your piggy bank and make it work for you.

Acorns is a financial wellness tool that automatically rounds up your card purchases to the nearest dollar and puts those savings into an investment account. It takes the worrying out of investing and matches you with one of five investment portfolios.

Take five minutes to sign up for Acorns today and collect a $10 bonus.

About the Author

Shane Murphy

Shane Murphy

Reporter

Shane is a reporter for MoneyWise. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.

What to Read Next

Take a Break From Your Debt This Month

Let debt consolidation give you a break.

If You Owe $25K+ in Student Loans, This Site Could Help You Pay Them Off Faster

If student loan debt is dragging you down, this company can help.

Personal loans vs. credit cards

Personal loans and credit cards can be used as tools of growth or tools of destruction.

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.