“Dear Steve,
I have completely paid off my minor credit cards. My visa, with a close to $8,000 balance remains. My interest rate is so high, it seems my payments aren’t moving the balance at all. I want to do a balance transfer to a lower interest rate, but I do not know where I should go for that. My intention from this point on, is to pay large amounts at a time.
What are your suggestions?
Sarah”
The Answer:
Dear Sarah,
I think the days of confident balance transfer have sailed. Even if you did a balance transfer I strongly suspect that creditors will raise your rate way up latter, and you know why, because they can.
I’ve really been impressed with LendingClub.com as a way for people to pay off higher interest rate debt. Your loan would be funded by hundreds of individual lenders, like me, who would all be willing to take a slight risk on you. LendingClub would then fund your loan, wire the money into your account and you could pay off your higher interest rate credit card.
I’m getting ready to invest more money into my LendingClub account so if you do decide to request a loan through LendingClub, let me know how to find it by leaving me a message in the comments section and I’ll happily be one of the many investors that will help you to payoff this debt.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.