Expert Bankruptcy & Debt Relief Insights

Matters related to personal finance rank highly among things that adults wish they had learned in high school. Some math classes teach students about simple and compound interest, but the context is usually about your money earning compound interest in a bank account. Years later, a few people will cite this lesson as something that sparked their interest in investing, but most people will never have enough cash that the interest on their investments will make them wealthy. Most of us end up on the paying end of compound interest, and that is not the worst-case scenario; those of us who are paying a sizable portion of our paychecks to paying interest on interest are in a better position than those of us who are in such bad financial shape that no one will lend to us. You might pay hundreds of dollars toward your credit card minimum payment each month and barely make a dent in the balance; this is as bad for your morale as it is for your finances. There are several ways to reduce the total amount you pay between now and that hypothetical day when your bank account balance will reach zero, and one of them is refinancing your credit card. To find out more about credit card refinancing and other options for paying off your credit card debt less expensively, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

If You Can Refinance a Home Mortgage, Why Not Refinance Your Credit Card Debt?

Refinancing a loan is when you pay off a loan by borrowing a new loan and using it to pay off the remaining balance of the old loan. It does not get you out of debt free, but it is a desirable option because the new loan usually has a lower interest rate. Because the original principal amount of the new loan is less than what you originally borrowed on the old loan, and the repayment term is longer, it also means that your monthly payment is lower. Many homeowners refinance their mortgage loans when interest rates are low; those who keep the same loan for the duration of 30 years are the exception to the rule. Credit card refinancing is simply when you borrow a personal loan with a low interest rate and use it to pay off a credit card; credit card interest rates tend to be much higher than the interest rates on personal loans.

Is Credit Card Refinancing Better Than a Balance Transfer or Debt Consolidation Loan?

Why don’t we hear more about credit card refinancing? It is because, when people can get a personal loan, they usually do not pay it all at once with a credit card. Instead, they use the loan to pay off several debts; this is known as debt consolidation. Another popular option is to transfer your credit card balance to another credit card with a promotional interest-free grace period.

Contact the Law Office of Melanie Tavare About Credit Card Refinancing

A debt relief lawyer can help you if you are considering refinancing your credit card debt.  Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.