The Differences Between Balance Transfer Credit Cards and Personal Loans
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is a Balance Transfer Credit Card?
How Do Balance Transfer Credit Cards Work?
What Are Personal Loans?
How Do Personal Loans Work?
Pros and Cons of Personal Loans
Personal Loans vs. Balance Transfer Credit Cards: Weighing Which Choice Is Best for You
What to Consider When Refinancing Debt
Fixed Rates and Payment Schedules
Credit Score Impacts
Types of Debt
Alternative Ways of Refinancing High-Interest Debt
Try a common debt payoff strategy: If you feel like you can DIY it, an option that will allow you to avoid fees and further interest, you could explore some of the popular debt payoff strategies that are out there. For instance, with the debt snowball method, you pay off the smallest of all of your loans as fast as possible, while still making the minimum payments on your other loans. Another choice is the avalanche method, where you focus on paying off the loans with the highest interest rates first. Look into a debt settlement plan: You can opt for a debt settlement plan if you're struggling to make payments on time. Debt settlement involves negotiating with your creditor to pay less than the initial loan balance. There are attorneys and debt settlement firms that can help you with this process. While debt settlement could be appropriate for your needs, keep in mind that it could also hurt your credit score. Consider credit counseling: Another option you could explore to get back on track is working with a nonprofit credit counseling organization. These organizations can offer you advice to get back on track and help you create a budget. They may also help you organize a debt management plan to pay off your debts.
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