Refinance credit card debt to reduce monthly payments.
Anyone that is struggling to pay their bills, or that needs a lower payment, can refinance their credit card debt. There are several ways to do this. Borrowers can use assistance programs from non-profit credit counseling agencies, loans from other lenders, or even resources that are available directly from the credit card company to do this.
Find a list of options below. Each of the various credit card refinancing programs will come with pros and cons, and it is not always possible to do this. But anyone that is struggling or that would like a lower payment (or to save money) may benefit from a credit card debt refinancing service. The tactic can be used for all of the major banks, including BOA, store cards, JP Morgan Chase, Discover, Citibank, and others.
How to refinance a credit card to save money
The first, and probably most common way, is through taking out a new loan with a lower interest rate and more favorable repayment terms. There are a re number of places to turn to for this refinancing option. Borrowers can use another bank, a non-profit organization (such as a credit union), a different credit card company, a private company, or even a home equity loan. There may be other options too. In general, this method of refinancing a credit card is known as a debt consolidation loan.
Credit card companies also offer hardship programs to refinance debt. A hardship program is by default an option for struggling borrowers. If someone is struggling to pay their credit card bills, if they are behind on payments, or if they missed a payment or so, then a hardship program may be offered.
All banks operate them, including Chase, Capitol One, Bank of American, Citi and others. One part of what may be offered is a credit card debt refinancing. This can involve lowering interest rates or extending payment terms. Or they will offer other ways to refinance the debt. Continue with credit card hardship programs.
Another credit card debt refinancing solution is a DMP. This will be offered directly by a bank or lender in partnership with a third party organization, often a debt counselor. The program involves the consumer making payments into an escrow type plan, and then the third party pays the credit card bill. It also often mandates budgeting workshops, financial literacy, and other steps to ensure the borrower has improved financial knowledge. More on credit card debt management plans.
Free credit card debt refinancing programs can also be available at non-profit credit counseling agencies. There are both national and local offices. The staff at these organizations not only can help with credit card debt, but they also help borrowers with all other sorts of financial obligations. Learn about refinancing a mortgage, car loan, payday costs, and more. More details on free credit counseling organization assistance programs.
Peer to Peer lenders can be used to refinance credit card debt too. Companies such as Lending Club, Marcus, Zopa and others offer this service. Loans are issued to borrowers, and the funds can be used for almost any reason, including paying off one credit card which is a form of refinancing. As the Peer to Peer loan will be more affordable. More on peer to peer loans.
There are several ways to refinance any bills or debts that are owed to a credit card company. Most lenders offer some form of solution. Or a third party, non-profit can be contacted for help. In addition, consumers always have loans that they can use to pay off one credit card, and the new loan will need to have a lower monthly payment and/or interest rate. Not only that, one or more of these solutions can be used at the same time.