Consolidating multiple car loans into one
Cons: You need to meet the lender’s eligibility requirements to qualify for a personal loan.
If you’ve had financial difficulties in the past, you may not be eligible, or you may only qualify for an interest rate that’s comparable to the current rate on your credit cards.
If you work with a credit counselor, it’s important to research the organization before you get started.
Check with your state attorney general’s office and consumer protection agency to ensure it’s reputable.
In addition, some cards charge a balance transfer fee, which will add to the debt you must repay.
Also, the amount you transfer — including any fees charged — can’t be higher than your credit limit, which may not be high enough for you to pay off all your debt.
Pros: When you borrow money from somebody you know, you don’t have to meet minimum eligibility requirements to qualify for the loan, and you may be able to get a lower interest rate than you would from a bank or credit union.
They give advice about credit issues, budgeting, money management and debt management.Some lenders offer cash-out refinance auto loans that allow you to use the equity in your car to issue you a loan for other expenses, like consolidating credit card debt.But if you’re unable to make your payments, you risk losing your vehicle.Keep in mind that you may not be allowed to transfer balances between cards issued by the same lender.And if you opt for a balance transfer, it’s especially important to pay on time because late payments may cancel the introductory APR offer.