Particle.news
Download on the App Store

How to Tackle Post-Holiday Debt: 0% Transfers, Consolidation Loans, Budget Apps

Many households start the year in the red, prompting experts to urge quick action.

Overview

  • A LendingTree survey cited by CNBC reports that 37% of Americans took on holiday debt, with an average balance of $1,223.
  • Balance transfer credit cards can pause interest for 12 to 21 months, typically charging a 3% to 5% transfer fee, with examples including Chase Freedom Unlimited at 15 months and Citi Simplicity at 21 months.
  • Debt consolidation loans can roll multiple balances into one payment with a single rate, with typical amounts from about $1,000 to $100,000 depending on credit and income.
  • Lenders highlighted include Avant, offering $2,000 to $35,000 loans with a minimum FICO of 550, and Upstart, starting at $1,000 and evaluating factors beyond credit score, though origination fees may apply.
  • An interview covered by WSBT relays advice to monitor balances, plan for January bills, prioritize the highest-interest debts, and start repayment immediately, noting an NRF estimate of more than $1,500 in holiday debt per household.