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Personal loans are a different type of loan that you can use to consolidate debt or pay for other expenses. Personal loans typically have lower interest rates than credit cards, and you can borrow more money with a personal loan. Personal loans are typically unsecured, meaning that you don't need to put up any collateral to qualify. Check out NerdWallet’s Personal Loans Tool to compare your options.
Balance transfers allow you to move debt from one credit card to another, typically with a lower interest rate. This can be a great way to save money on interest, especially if you can qualify for a 0% APR balance transfer offer (this means paying no interest for an initial promotional period!). However, balance transfers often have fees, and the promotional interest rate only lasts for a limited time. Read more about NerdWallet’s top picks for September 2023 here.
If you have a small amount of debt and can pay it off quickly, a balance transfer may be a good option. But if you have a large amount of debt or need a longer repayment period, a personal loan may be a better choice.
It’s also important to:
If you don't qualify for a personal loan or balance transfer, you may be able to consolidate your debt with a home equity loan or line of credit. You may also be able to work with your creditors to negotiate lower interest rates or monthly payments.
Debbie’s Rate Crusher marketplace works like this:
Note: Replacing your high interest debt with lower interest debt, can save you thousands in interest, but that is not the end of your debt payoff journey. You also have to make sure not to rack up your credit cards again - that’s why Debbie’s money psych course is designed to help you reduce spending and use credit responsibly.
It's possible to use both balance transfers and personal loans to pay off debt. However, each has its pros and cons, and it's possible to use both to reduce how much you pay in debt and reach your financial goals!
Debbie is an app that uses behavioral psychology and prizes to help you pay off debt for good. The app rewards you for paying off debt with lower interest rates on your current credit, as well as cash. Start our free money psychology course today to get qualified. Start Now →
Having a less-than-perfect credit score can make it challenging to access credit and financial opportunities. However, it's important to know that all hope is not lost. Many financial institutions and credit providers offer credit options for individuals with bad credit, and with some strategic steps, you can improve your financial situation.
Do you feel like your bills always manage to be due before you get paid your bi-weekly? I bet this causes a lot of annoyance - now, there are lots of earned wage access apps, like Earnin and Moneylion, that help you get your money early. But what if you could sync up your bills with your paydays? When your payments line up with your income, you dodge those pesky late fees, slash those interest charges, and make your financial journey a whole lot smoother. So, stick around, and we'll show you the ropes on how to make it happen!