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CBS News
28-05-2025
- Business
- CBS News
Why you should consolidate your credit card debt this June
This June could be a smart time to consolidate your credit card debt with a personal loan. Getty Images There are multiple ways to roll your credit card balances into one monthly payment. Whether it's via a debt consolidation loan secured independently, a debt consolidation program with a debt relief company, or a debt management program, card users have various options to explore. And in today's unique economic climate, in which inflation remains a concern and elevated interest rates remain frozen on a variety of borrowing products, it makes sense to explore these options sooner rather than later. Delaying could damage your financial health and cause you to pay more in interest than your initial debt was worth. While debt consolidation can be favorable for borrowers in a variety of economic landscapes, it can be particularly advantageous now, at the start of June 2025. But it won't be an overnight fix, either. So it's important to be proactive in your approach. Below, we'll detail why it could be smart to consolidate your credit card debt this June. Pay less interest on your credit card debt with a low-rate consolidation loan now. Why you should consolidate your credit card debt this June Here are three timely reasons why consolidating your credit card debt could make sense this June: Credit card interest rates are likely to remain high The average credit card interest rate is around 21% now, only slightly below a recent record high of 23%. And the unfortunate reality is that rates here are likely to remain in this range for the foreseeable future, including June. The likelihood of a rate cut from the Federal Reserve at the bank's June meeting is just 2.2%, according to the CME Group's FedWatch tool. And while credit card rates are driven by more than just Fed policy, a pause there will essentially ensure that rates on credit cards remain high. Borrowers should remember that credit card rates spiked to a new record high last November, directly in the middle of the Fed's latest interest rate cut campaign. So, waiting for more cuts and, thus, lower credit card rates this June won't be cost-effective. In this climate, consolidating this debt could be more advantageous. See what credit card debt relief options you could qualify for here. Rates on alternatives could fall further At the same time that credit card rates have remained stubbornly high, rates on home equity borrowing products like home equity loans and home equity lines of credit (HELOCs) have declined, making either a smart way to consolidate your credit card debt this June. HELOC interest rates, in particular, are down around two full percentage points from the double digits they were at in September 2024. And thanks to a variable rate that changes each month, rates here could decline even further for borrowers, making this an increasingly affordable way to consolidate your debt. While debt consolidation loans can offer a similar financial benefit, rates there are typically fixed, meaning borrowers will have to refinance their loans if rates decline to a substantial degree later this year. Learn more about consolidating your debt with your home equity here. Your interest is compounding in the interim Did you know that your credit card interest compounds not monthly, but daily? Sure, this occurs after carrying a balance past the grace period (21 to 25 days, approximately). But once that date passes, credit card companies then divide your annual percentage rate (APR) by 365 days for the year, then that's tacked on to your existing balance. This can quickly cause even a seemingly manageable amount of debt to become impossible to pay down at today's average rates. Consolidating with a HELOC, with a rate of around 8%, or a debt consolidation personal loan, with a rate around 12%, can not only save you interest costs, but it will allow you to make larger payments toward your principal versus being stuck in a seemingly never-ending interest compounding cycle. The bottom line The path to regaining your financial independence can start this June via debt consolidation. With credit card interest rates unlikely to decline, home equity borrowing products as viable, cost-effective consolidation alternatives and the reality of compounding interest for every day that you delay taking action, this June could be a smart time to consolidate your credit card debt. Consider speaking with a financial advisor or debt relief servicer, then, who can answer your questions and help you build a personalized, debt consolidation plan that fits your needs and budget.
The Sun
28-05-2025
- Business
- The Sun
How to find the cheapest personal loan as we reveal best way to borrow up to £10,000 cash
Emily Mee, Consumer Reporter Published: Invalid Date, TAKING out a personal loan can help you pay for big expenses like a new car, home improvements or a wedding. With households now spending more on essentials like housing, bills and food, they may have less in savings to cover the big things. Taking on debt should usually be a last resort and used only for necessities, but it may be needed if you're unable to pay for things otherwise. That's why we've put together this guide with everything you need to know about taking out a personal loan, what the risks are and the best rates you can get... What is a personal loan? A personal loan is a type of loan that lets you borrow a fixed amount of money as a lump sum. You can usually borrow between £1,000 to £25,000. They're often useful when you want to borrow a relatively large amount and would like more time to pay it back. For example, you might want to buy a new car, pay for a wedding, fund home improvements or consolidate your debts. When you take out a personal loan the money is deposited into your bank account as a lump sum and you'll then pay it back in instalments over a set period. This is usually between three and 10 years. The longer you take to pay back your loan, the more interest you will have to pay. The two types of personal loan There are two types of personal loan - unsecured and secured. Unsecured This is the most common option, and it means the loan isn't secured against an asset such as your home. A provider will lend you the money and you pay it back at the agreed rate of interest until it's repaid in full. Your credit score is at risk if you fail to keep up with the repayments. A poor credit score can make it harder to get other forms of credit such as a mortgage or credit cards in the future. A lender could also take a county court judgement against you or you may be forced to declare yourself bankrupt. There may also be late fees to pay. Secured This is when the loan is secured against an asset, which is usually your home but could be another item such as your car. Borrowers can usually be loaned more - typically up to £100,000 - as there is a secured asset involved which gives lenders more comfort. However there is a big risk here as the asset you have secured could be repossessed of you fail to repay. Your credit score and the value of the asset will be considered when you make a secured loan application. How can you apply for one? You'll need to apply for one from a provider, which you can usually do either directly online or through a comparison website. Martin Lewis explains why credit score 'isn't real' and shares 'the holy trinity' of measures lenders use to assess you Some lenders might let you apply on the phone or in a bank or building society branch. The lender will want to know your income and how much you spend each month so they can work out whether you can afford a loan. You'll need to provide your name, address and bank details. The lender will do a credit check to assess your track record of repaying debts and they'll look at your salary, income and how much you spend to see if you match their affordability criteria. Although you can usually choose how much you want to borrow and how long for, the lender may impose limits on this if they're unsure about your credit rating. If your loan is approved the lender will tell you how much you can get, the amount of interest they will charge and how much you will have to pay each month. It will also say when the money will reach your account and what date you will need to make your repayments each month. There is a 14-day cooling off period either from when the loan agreement is signed or when you receive a copy of it, whichever is later. This gives you time to change your mind and any money received has to be paid back within 30 days. There may be early repayment fees if you want to repay your loan before it is due so check the terms and conditions if you want to settle the debt sooner. How can you get the best rate? The best way to get a good rate on your personal loan is to have a good credit rating. The cheapest deals will be reserved for those whose credit score is good or excellent. If you have bad credit, such as a history of arrears or defaults, you may struggle to get a good rate. In this case you might be offered a lower amount or asked to pay a higher rate. You can read our tips on how to improve your credit score here. In the short term, there are still steps you can take to get the best deal for yourself. It's best to shop around for the lowest rates and you can do this by using price comparison websites like Compare the Market or MoneySuperMarket. Sarah Coles, head of personal finance at Hargreaves Lansdown says: "The comparison sites break the loans down by size, so you can stick to the best rate for the amount you're borrowing. "However, they will rank rates by the APR, and that will depend on your credit record. "In some cases, you won't qualify for the loan, in other cases you will – but they will bump up the APR to reflect the fact they don't think you're an ideal borrower – just under half will be offered a higher rate than the APR." Rachel Springall, finance expert at said many lenders offer their lowest advertised rates to those who borrow around £7,500. Rates can "vary considerably" for lower amounts, she said. What else do you need to know? You should think carefully about how much you need to borrow and how long you want to make the repayments for. If you over-estimate how much you need to borrow, you'll end up paying interest on money you don't need. But if you underestimate you could end up borrowing the rest far more expensively. When it comes to the repayment term, Sarah Coles says you should consider that "the longer you borrow for, the lower your monthly repayments". "However, the more interest you'll end up repaying overall, and the bigger the risk that your life will change while you owe the money, which could make it harder to repay," she says. You should make sure you have enough disposable income to cover the monthly repayments as missing a payment could damage your credit score. If you might want to repay early you should check the early repayment penalties so there aren't any surprises later down the line. Another thing you should note is that it will show on your credit record when you apply for a loan. That means the more loans you apply for, the more it will affect your record. "You should look for a search engine that lets you check your eligibility first so you don't end up applying for loans you don't get – or you get but at a far higher rate than you expected," Coles says. "You need to put a fair amount of detail in, so it's worth assuming this process will take a little while, but it's time well spent." Rachel Springall says you should also consider whether you have other options rather than taking out a personal loan. "It may be cheaper to use a credit card rather than a loan for small amounts, but borrowers will need to set themselves a strict repayment plan to pay off the debt, as they can be flexible with minimum repayments," she says.
Associated Press
17-05-2025
- Business
- Associated Press
What to Consider When Applying for Personal Loans in Baton Rouge
NEW YORK CITY, NY / ACCESS Newswire / May 17, 2025 / There are a number of reasons why you might apply for a personal loan in Baton Rouge. Perhaps you are looking to make improvements to your home, pay for emergency medical bills, or cover the cost of a large celebration like a wedding. No matter the goal, there are a number of factors to keep in mind. If you are looking to apply for loans in Baton Rouge to help you move forward on a project or find additional financial support during a challenging time, carefully consider the following information before you sign on the dotted line. Think through your needs One of the perks of a personal loan is that it can be used for many different situations. Personal loans are a handy tool for covering moving costs, financing a new vehicle, consolidating your debt into more manageable repayments, or affording an urgent and unexpected situation. While taking out a personal loan is often better than other alternatives such as racking up credit card debt at a potentially higher interest rate or stretching your savings too thin, you are still borrowing money. Make sure you know exactly why you need a personal loan, what it will be used for, and how much money you need before you apply. Review your financial profile Applying for a personal loan or any other type of monetary support from a financial institution often requires a check on your credit score, credit history, and income. Personal loans can be either secured or unsecured, meaning you may or may not have to put up collateral like a house or car to secure the loan. It's helpful to consider the qualifications for a personal loan before you apply since your financial profile will likely impact the terms of your loan. What kind of interest rate are you likely to get? How long will you have to repay the loan? Is there anything you can do before you apply to strengthen your application? Remember, whichever type of personal loan you get, you'll need to pay it back on time and in full in order to protect your credit score and overall financial well-being. Create a plan to pay it back Personal loans are attractive in part because you could be approved relatively quickly, sometimes the same day you apply, and they have a predictable monthly repayment schedule. Once you secure the loan, you'll know exactly how much you owe each month and for how long since the interest rate will be fixed and the payoff date is set from the start. This is helpful because it helps you to plan ahead. Consider how the loan repayments fit into your monthly budget. Do you need to make changes to your overall spending to afford the loan repayments? Will you be able to make the payments on time and in full? Should you consider a different loan with better terms? Make sure you have the resources to pay back whichever loan you secure without going into more debt that could end up being unmanageable. Make the most of your personal loan Applying for a personal loan to help with expenses in Baton Rouge is a significant financial decision, but it doesn't have to be intimidating or overwhelming. Think through what you need, review your financial profile, and create a plan to repay the loan. Carefully considering these important parts of securing a loan will help you meet your financial needs and make the most of your loan. SPONSORED CONTENT Contact Information: Name: Sonakshi Murze Email: [email protected] Job Title: Manager SOURCE: iQuanti, Inc. press release
Yahoo
17-05-2025
- Business
- Yahoo
What to Consider When Applying for Personal Loans in Baton Rouge
NEW YORK CITY, NY / / May 17, 2025 / There are a number of reasons why you might apply for a personal loan in Baton Rouge. Perhaps you are looking to make improvements to your home, pay for emergency medical bills, or cover the cost of a large celebration like a wedding. No matter the goal, there are a number of factors to keep in mind. If you are looking to apply for loans in Baton Rouge to help you move forward on a project or find additional financial support during a challenging time, carefully consider the following information before you sign on the dotted line. Think through your needs One of the perks of a personal loan is that it can be used for many different situations. Personal loans are a handy tool for covering moving costs, financing a new vehicle, consolidating your debt into more manageable repayments, or affording an urgent and unexpected situation. While taking out a personal loan is often better than other alternatives such as racking up credit card debt at a potentially higher interest rate or stretching your savings too thin, you are still borrowing money. Make sure you know exactly why you need a personal loan, what it will be used for, and how much money you need before you apply. Review your financial profile Applying for a personal loan or any other type of monetary support from a financial institution often requires a check on your credit score, credit history, and income. Personal loans can be either secured or unsecured, meaning you may or may not have to put up collateral like a house or car to secure the loan. It's helpful to consider the qualifications for a personal loan before you apply since your financial profile will likely impact the terms of your loan. What kind of interest rate are you likely to get? How long will you have to repay the loan? Is there anything you can do before you apply to strengthen your application? Remember, whichever type of personal loan you get, you'll need to pay it back on time and in full in order to protect your credit score and overall financial well-being. Create a plan to pay it back Personal loans are attractive in part because you could be approved relatively quickly, sometimes the same day you apply, and they have a predictable monthly repayment schedule. Once you secure the loan, you'll know exactly how much you owe each month and for how long since the interest rate will be fixed and the payoff date is set from the start. This is helpful because it helps you to plan ahead. Consider how the loan repayments fit into your monthly budget. Do you need to make changes to your overall spending to afford the loan repayments? Will you be able to make the payments on time and in full? Should you consider a different loan with better terms? Make sure you have the resources to pay back whichever loan you secure without going into more debt that could end up being unmanageable. Make the most of your personal loan Applying for a personal loan to help with expenses in Baton Rouge is a significant financial decision, but it doesn't have to be intimidating or overwhelming. Think through what you need, review your financial profile, and create a plan to repay the loan. Carefully considering these important parts of securing a loan will help you meet your financial needs and make the most of your loan. SPONSORED CONTENT Contact Information: Name: Sonakshi MurzeEmail: Title: Manager SOURCE: iQuanti, Inc. View the original press release on ACCESS Newswire
