Options to consolidating credit cards are bajo and hex dating
According to IRS rules, you may borrow a maximum of 50% of your vested balance or ,000, whichever is less, and have up to five years to repay. You do have to be sure of your job’s stability, though, because if you quit or are fired, the entire balance would be due within 60 days.If you don’t pay it back, the debt will be taxed and a 10% penalty will be imposed.A home equity loan allows you to borrow a lump sum with a fixed interest rate, and a home equity line of credit (HELOC) — where you draw against the equity whenever you need it — has a variable interest rate, so the rate can increase over time.The interest rates on both types are significantly lower (around 7%, as per U. Bank’s calculator for a ,000 loan or HELOC) than those of credit cards, which are averaging APRs of 17%.Review this option with your human resources department and a qualified financial planner.
If the average interest rate on your credit cards is higher than the loan’s rate, you will save money, though there is often an upfront fee of a few percentage points to take the debt on.To find an accredited credit counseling agency, contact the National Foundation for Credit Counseling or the Financial Counseling Association of America.Yet another way to consolidate your debt is by asking a friend or family member for a loan.You’ll repay the debt over a certain number of years (usually from one to five years) with fixed payments.
Those payments will be higher than the expected minimums of the credit cards, so your income will have to be large enough to handle the hike.
There is usually a small monthly administration fee.