Corey Advisors just popped up on Best2020 Reviews radar. Corey Advisors is also known as Carina Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.
Best 2020 Reviews closely monitors personal loans, debt reduction, and credit card consolidation offers sent through direct mail to consumers.
Consumers with too much debt are generally vulnerable to these types of offers. Sometimes they are so desperate to get out of debt that they make bad decisions. They respond to any offer that gives them hope of a better financial future, even if it feels too good to be true. That is why it is so important to rate shop and not take the first offer that comes your way.
One of the biggest benefits of credit cards is that they have simplified payments. With a credit card, you can easily buy things for which you do not have enough cash. However, all these benefits are worthwhile only if you pay off your credit card balance diligently every month. If you don’t, then the interest will start accruing, along with penalties. Eventually, you may get mired in a debt trap. If you have accrued a large amount of credit card debt, then it is time for you to contemplate the merits and demerits of credit card refinance and debt consolidation.
Debt Consolidation and Credit Card Refinancing
Debt consolidation and credit card refinancing are the two most common methods for discharging your credit card liabilities.
Debt consolidation entails taking out a loan so that you can pay off your credit card debt that carries a high interest rate. This type of loan may be secured, such as a home equity loan. It may also be unsecured, such as a personal loan obtained from an online lender, credit union or bank.
Although credit card refinancing is simpler than debt consolidation, it may be available only to those with a high credit score. For credit card refinancing, you need an approval for a credit card that allows transfers, free of charge. The credit card should also have a large credit limit. Using such a card, the debtor can transfer the balances from other high-interest credit card accounts to this account.
Keep in mind that credit cards that do not charge fees on balance transfers may have a zero APR period, which may extend from 12 to 18 months. During this time frame, no interest will be charged. But, once this time frame expires, then the credit card will charge interest that may range from 16 to 20 percent. For this strategy to work, it is imperative that the debtor should discharge all credit card debt within the zero APR time period.
Is Credit Card Debt Consolidation for You?
Debt consolidation does not necessarily suit everyone. The truth about debt consolidation sometime hurts. If you possess significant home equity, steady income and good credit score, then you will not have too much trouble getting approved for a home equity loan. You can use the loan proceeds to pay off your credit card liabilities. Other options include personal loans. Since these loans are unsecured, they are not as easy to obtain. Lenders face a higher risk from unsecured loans as compared to secured loans. Hence, unsecured loans also involve higher interest rates than secured loans. But, despite their higher interest rate, they are often not as much as the interest rates that credit card companies charge.
Debt Consolidation Benefits
Debt consolidation allows for extended repayment schedules and reduced, fixed interest rates, thus, making them appealing to debtors burdened with high-interest credit card debt.
The biggest problem with accruing a large amount of credit card debt is the interest that you will owe on your accrued balance. Your credit card interest may range between 20 percent and 25 percent because of which, repaying all your debt on time may become very difficult or even impossible.
A home equity loan, on the other hand, is a much better option since it will charge you just 5 to 8 percent interest, which is less difficult. Another advantage of seeking a home equity loan is that you are often allowed to pay off your liability earlier in case you get an extra income. This means that you will have to pay less interest.
Another option for debt consolidation includes personal loans. You may have to pay origination fees that may be as much as 8% of your borrowed amount. In addition, you will have to pay the interest rate, which may depend on several different factors, which include credit score and the amount borrowed.
Despite the higher interest rate on unsecured personal loans, you may still stand to gain because they are often less than the average credit card interest. You will also be informed in advance about the monthly amounts that you must pay during the life of the loan. The loan repayment schedule usually lasts up to 5 years. It is definitely advisable to search for a lender that offers the most lenient terms and conditions. Quite often, online lenders charge the highest interest rates, whereas credit card unions often charge lower interest rates. So, you should first look at credit unions and try to seek their approval for a personal loan.
A major risk of secured loans is that you risk losing the asset that you offered as collateral. Similarly, a disadvantage of unsecured loans is that you will have to pay higher interest than secured loans.
Refinancing Benefits
Transferring your credit card balance to a new credit card that charges zero fees on balance transfers is possible if the card provides a credit limit that is large enough. Another thing to look out for is that you should be able to pay off the entire liability within the zero APR introductory period. If you cannot pay off the entire amount of the debt, then the remaining balance may incur as much interest as your previous credit cards.
One of the benefits of transferring your outstanding credit card balances to a zero transfer fee credit card is that you have 12 to 18 months at your disposal. During this time period, you will not incur any interest. You can, hence, focus on paying the principal amount rather than paying the accrued interest. Even if you cannot pay off the entire amount in its entirety during this zero APR period, you will still save a lot of interest expenses.
Refinancing may seem like a good deal. Unfortunately, it is not so easy to utilize since you need a good credit score to qualify for it. You must also remember that a balance transfer to such a credit card gives you a limited time frame within which you must pay. If you fail to pay off your balance, you will start incurring high interest.