Options for consolidating credit card debt
Don’t leave yourself without emergency funds just to consolidate debt. But if you quit or get fired, the entire 401(k) loan becomes due immediately, Collins says.
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But you will want to be sure that consolidating debt outweighs the lost principal and compound interest in retirement.
sturti/E /Getty Images You contract with a nonprofit credit counseling agency to negotiate with creditors and draft a pay-off plan.
Drawbacks: Before applying, ask about balance-transfer limits and fees, says Celeste Collins, executive director of On Track Financial Education & Counseling.
Also: You won’t learn the APR or credit limit until after you’re approved — if you’re approved.Compare home equity loan rates Fuse/Getty Images Also called a “signature loan,” a personal loan is an unsecured loan.