Consolidating my credit card debt
P2P Credit's interest rates start at 6.38% - and P2P Credit specializes in debt consolidation loans.You don't have to have perfect credit (P2P loans are even available for people with bad credit) and applying for a loan is easy.(That way, you can get away from the high interest rates and reduce your monthly payments to just a single payment on just the one personal loan.) P2offers loans of all types - so, you can even avoid the credit card trap altogether and finance just about anything you'd normally put on a credit card.But the really fun part about P2P Credit is that it's not a credit card company - the money for all of the loans comes from individual investors (real people!The total credit card debt is about 0 billion, and the average borrower balance (for those with credit card debt) is ,400.However, credit card debt isn’t the only type of debt.
Is your debt helping you increase your overall financial well-being?If you're not in debt - or if your debt is at a very low introductory or promotional interest rate - there is NO reason to consolidate your debt into a loan.(The advantage comes from the lower interest rate.) However, if you are carrying credit card balances at high interest rates, it makes sense to consolidate as much of your credit card debt as possible into a personal loan.However, if you are building up a lot of personal debt, including credit card debt, then most likely you are either in a financial hardship, or mismanaging your finances.
Instead of building equity, you are paying lots of interest to service your debt.Since you have a credit card, the chance that you carry a balance is fairly high - and so is the chance that the interest rate on your credit cards is fairly high, too.So, how can you avoid paying such high interest rates to the credit card companies whom you owe?) who have decided to invest small amounts of their own money into each loan (a process called P2P lending).