Should Georgia Consumers Use Personal Loans or Balance Transfer Credit Cards to Pay Off Heavy Credit Card Debt?

When paying off heavy credit card debt, should Georgia consumers use personal loans or balance transfer credit cards?

For Georgia consumers with heavy credit card debt, two possible solutions are fairly appealing. You could take out a personal loan with a competitive interest rate and pay off your balances. Or, you could apply for a balance transfer credit card with an introductory 0% APR. Both of these options are only good for consumers with good to excellent credit scores. Also, for consumers in Georgia who qualify for both personal loans and balance transfer credit cards, one option is usually better than the other.

Any individual in Georgia with high credit card balances must determine which option fits their unique situation best. Some should pursue personal loans, while others should opt for balance transfer credit cards. Then, others – Georgia consumers with credit scores below 650 – should look beyond both of these options to entirely different solutions.

Why Some Georgia Consumers Should Take Out Personal Loans to Pay Off Heavy Credit Card Debt

Sometimes, even with the best intentions, Georgia consumers who transfer balances to other credit cards shift their focus away from paying off debt. With no enforced monthly payment (beyond the minimum amount due), they let balances carry over from month to month. Then, the introductory period ends, the 0% interest goes away, and these consumers find that they’ve made no progress.

For these Georgia credit card users trying to eliminate high credit card balances, personal loans may work better. Here, at least, the process is much more clear-cut. They take out the loan, pay off their credit card balances, then make a monthly payment. Once they set this plan in motion, consumers in Georgia have no choice but to pay off their personal loans. Otherwise, if they default, they can do serious and lasting damage to their credit scores.

Of course, personal loans typical come with origination fees that range from 1% to 6%. Also, using them to pay off credit card balances normally only works for consumers in Georgia with good credit scores. For, unless the personal loan comes with a competitive interest rate, a consumer likely won’t save money when using it to pay off their credit card balances.

Why Some Georgia Consumers Should Use Balance Transfer Credit Cards to Pay Off Heavy Credit Card Debt

Right up front, Georgia consumers who opt for balance transfer credit cards pay 3% to 5% in transfer fees. However, once they transfer their credit card balances, they normally get 0% interest rates for 6-18 months. Therefore, if they can pay off these balances quickly, they can save a lot of money in interest charges.

Of, course, this debt relief strategy requires a lot of self-discipline. Unfortunately, when some credit card users in Georgia transfer balances to 0% interest cash, they cannot resist the temptation to spend more. Then, as mentioned previously, the promotion ends, and the consumer finds that they’re still in debt, and they must once again face interest charges on their balance.

Yet, as long as consumers have a debt repayment plan in mind, and they stick to it, using a balance transfer credit card to pay off high credit card balances can work quite well. Of course, in order to qualify for most balance transfer credit cards, a consumer in Georgia should have a good credit score. Otherwise, they should look for alternative options.

Alternative Options for Georgia Consumers with Heavy Credit Card Debt

For Georgia consumers with low credit scores – or those who simply don’t want to take out personal loans or use balance transfer credit cards – there are other debt repayment options. For example, consumers with all types of credit can qualify for credit management programs. Or, consumers in Georgia with high credit card balances can pay off their debt on their own by choosing the right strategy.

One option that works for many indebted Georgia consumers is the “snowball method.” Here, consumers throw all of their extra cash at their smallest credit card balances first, while maintaining minimum payments on other accounts. Another solution is often called the “avalanche method.” This strategy involves tackling credit card accounts attached to the highest interest rates first. Then, while paying minimum amounts due on other cards, consumers pay off high interest cards, one at a time, until they get all credit card debt under control.

Why All Georgia Credit Card Users Should Regularly Check their Credit Reports

While paying off credit card debt and improving their credit scores, Georgia consumers should monitor their credit reports for two important reasons. First, because identity theft is a constant threat in Georgia, consumers should check their credit reports for fraudulent transactions and bogus accounts. Next, while they may not realize it, about 80% of Georgia credit reports contain errors of some type. Many of these errors, sadly, can bring down credit scores. So, in order to protect growing credit scores, consumers in Georgia must review their credit reports at least once every 12 months.

Under the Fair and Accurate Credit Transactions Act (FACTA), all Georgia consumers may request free annual copies of their credit reports from the three major credit bureaus. Just go to www.annualcreditreport.com to get your most current credit reports from TransUnion, Equifax, and Experian.

Then, once you have access to your credit reports, look for fraudulent items or errors. If you spot signs of identity theft, file a police report immediately. Then, contact Credit Repair Lawyers of America. If, on the other hand, you find credit score damaging errors and mistakes, call us right away. The credit pros at our firm will get to work immediately to solve your credit issues. In addition, you’ll have access to an experienced credit attorney who will do whatever it takes to get you clean credit reports for FREE.

The Free and Legal way to Get Better Credit in Georgia

Don’t let identity theft damage or errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (404) 591-6680 or sending him a message through our contact page.

For more information about Free Credit Repair, please visit www.creditrepairlawyersam.com/credit-repair-free/. Or, for more information about Free Credit Repair After Identity Theft, check out https://www.creditrepairlawyersam.com/fixing-identity-theft/.