Consolidating unsecured debt

So I applaud your desire to attack this debt more aggressively, especially since it could well be that you have a higher interest rate than the one I used in this example.An unsecured personal loan, which enables consumers to replace their minimum and variable card payments with fixed loan installments, might be a good option for you – if you can qualify for a low rate.If you can qualify, this could be a great option, because there are still cards offering 0 percent interest for balance transfers.Zero percent interest doesn’t mean this alternative is free, because there almost always will be a balance transfer fee (often around 3 percent of the amount transferred), but it could save you quite a bit of money.The calculation shown above takes those payment reductions into account.However, if you can commit to paying the same 0 every month, you can pay this debt off yourself in 65 months, or about 5.5 years.Consider a garage sale or a second job to generate extra funds that you can put toward your debt.To protect your credit and for convenience, you may want to keep a credit card open.

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As I said earlier, your minimum payment today is about 0.

The way minimum payments work, if you make no additional charges, your payment will go down each month by about .

She currently serves on Bank of America's National Consumer Advisory Council and is a board member of the Council on Accreditation.

Assuming the average interest rate of 15.5 percent and the industry-standard minimum payment (all monthly interst plus 1 percent of the balance), today you are paying about 0 a month.

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