Credit Card Refinancing vs. Debt Consolidation: Which is Best For You?

With American household debt hitting a record $14.6 trillion in the spring of 2021, there’s no denying that personal debt is a reality for many. Two primary approaches to getting debt under control are credit card refinancing vs. debt consolidation loans. We will explore the benefits and shortcomings of each strategy and how you can harness the power of a repayment plan to get yourself out of debt sooner. 

Credit Card Refinancing: What Is It and How Can It Help?

 Credit card refinancing is a strategy that takes multiple credit card debt balances and consolidates them under a single card and interest rate. A balance transfer credit card is an excellent example of this. Credit card refinancing is a good short-term option because you no longer have to manage multiple monthly payments. This can reduce the stress of having multiple due dates and balances. With this strategy, you may also renegotiate the monthly amount you pay; however, it could extend the life of your debt. Even with the lower monthly payments that credit card refinancing brings, you could pay more in interest over the long term by refinancing. So it’s essential to consider what your goals are. If you are aiming to make life simpler in the short term and want to make monthly payments more manageable, shop around for a good balance transfer credit card.

Find a Credit Card with No Balance Transfer Fees 

Getting free of the tangle of multiple due dates and high-interest rates is possible with a balance transfer credit card. This can also free up space on your other lines of credit to improve your credit score. DEXSTA’s Visa Platinum and Visa Platinum Rewards cards offer a 2.99% introductory rate on all purchases for 12 months. After that, you get the introductory rate for 18 months on balance transfers, with no balance transfer fees, annual fees, or cash advance fees. Transparent rates are always part of the deal here at DEXSTA, so see our fees for yourself.  There won’t be any surprises! If you want to pay down debt on a more ambitious timeline, you might consider repackaging your debt with a personal loan. 

Take Out a Personal Loan For Debt Consolidation

Debt consolidation means simplifying your number of payments by taking out a new loan to pay them off. But taking out a loan to help pay off your debt should be done thoughtfully. Shop for the best rates first and see if you are saving money by consolidating your debt under a new interest rate. Personal loans have a good reputation for their fixed terms and lower interest rates, but not all loans are the same! 

One quality to look for in a good debt consolidation loan is ensuring the new loan has a lower annual percentage rate than the existing credit card(s) you are using now to pay it off. If it doesn’t, your debt may become even more unmanageable than it was before. 

Pay Down Debt With a Lower Interest Rate

Whether you need to consolidate high-interest rate balances or need extra financial breathing room, enjoy fixed interest rates and the flexible repayment terms of a personal loan. DEXSTA’s loans APR rates start as low as 6.99% but are based on the individual’s credit profile and the loan amount. Check out personal, auto, home equity loans, and more rates. DEXSTA believes that all personal loans should be simple with no prepayment penalties, so that’s what we offer.

We finance loans from $500 to $50,000 with no hidden fees and flexible repayment terms from 12 to 72 months. So get out of debt much faster with a targeted end goal and a monthly fixed payment that works for your budget. We work same-day on many of the approvals that come in; if not, you’ll see the money within one business day or less. We put the loan into your bank account, and you can then use that money to start paying off your creditors. 

Have a Plan to Address Your Debt with DEXSTA 

There are many loans and new lines of credit on the market, but with DEXSTA, you can trust that all decisions are made in-house so that you don’t get stuck on the corporate waitlist. If you’re exploring loan products, you can call one of our branches, walk in, or submit an application online and, in most cases, have the money you need in your account the same day. In addition, you never have to worry about prepayment penalties for being proactive about paying your loan. Whether you want credit card refinancing vs. a debt consolidation loan, get the best interest rates and repayment terms you deserve.