Credit card refinancing.
Find how credit card refinancing will help lower the interest rate you pay, considerate debts, and save money. A number of banks, lenders, and non-profit organizations provide this service. There are several options for refinancing credit card debts, listed below. Learn how to do it, what the refi process involves, and get help, including loans, to assist.
Borrowers can use credit card refinancing programs from non-profit credit counseling agencies or their current credit card company. Or refinancing the debt from loans from other lenders, credit unions or banks, including online lenders, personal loans or fintech companies.
Anyone in credit card debt can use the resources below. Each of the various credit card refinancing programs will come with pros and cons, and it is not always possible to do this. One benefit is that refinancing your credit card debt will not hurt your credit scores, providing the borrower makes future payments on time. People with low or bad credit scores can also get assistance from this process.
Anyone that is struggling or that would like a lower payment (or to save money) may benefit from a credit card debt refinancing service. The process can be used for all of the major banks, including BOA, store cards, JP Morgan Chase, Discover, Citibank, and others.
How to refinance credit card debts
The first, and probably most common way to refinance credit card debt, is through taking out a new loan with a lower interest rate and that also has more favorable repayment terms. There are a number of places to turn to for this refinancing option. Borrowers can use another bank, a non-profit organization (such as a credit union), a different credit card company, a private lender, or even a home equity loan. There may be other options too. In general, this method of refinancing a credit card is known as a debt consolidation loan.
Credit card companies also offer hardship programs to refinance debt. A hardship program is by default an option for struggling borrowers. If someone is struggling to pay their credit card bills, if they are behind on payments, or if they missed a payment or so, then a hardship program may be offered.
All banks operate them, including Chase, Capitol One, Bank of American, Citi and others. One part of what may be offered is a credit card debt refinancing. This can involve lowering interest rates or extending payment terms. Or they will offer other ways to refinance the debt. Continue with credit card hardship programs.
Another credit card debt refinancing solution is a DMP. This will be offered directly by a bank or lender in partnership with a third party organization, often a debt counselor. The program involves the consumer making payments into an escrow type plan, and then the third party pays the credit card bill. It also often mandates budgeting workshops, financial literacy, and other steps to ensure the borrower has improved financial knowledge. More on credit card debt management plans.
Free credit card debt refinancing programs can also be available at non-profit credit counseling agencies. There are both national and local offices. The staff at these organizations not only can help with credit card debt, but they also help borrowers with all other sorts of financial obligations. Learn about refinancing a mortgage, car loan, payday costs, and more. More details on free credit counseling organization assistance programs.
Peer to Peer lenders can be used to refinance credit card debt too. Companies such as Lending Club, Marcus, Zopa and others offer this service. Loans are issued to borrowers, and the funds can be used for almost any reason, including paying off one credit card which is a form of refinancing. As the Peer to Peer loan will be more affordable. More on peer to peer loans.
Credit card refinancing is a form of debt consolidation
At the end of the day, refinancing credit cards is a form of debt consolidation. Anytime a borrower takes out a new financial obligation, and reduces the interest rates or extends the payment terms, that is a form of consolidation. It can be done for credit cards, auto loans, a home mortgage, medical bills or anything. In other words, refinancing credit card debts is just like consolidating any bill.
As noted above, there are several ways to refinance any debts that are owed to a credit card company. Most lenders offer some form of solution. Or a third party, non-profit can be contacted for help. In addition, consumers always have loans that they can use to pay off one credit card, and the new loan will need to have a lower monthly payment and/or interest rate. Not only that, one or more of these solutions can be used at the same time.
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