I got a letter from a company called Panther Lending. They’re offering a debt consolidation loan with a 3.86% interest rate. I recently lost my job and got a new one, but with a much lower salary. I have a lot of credit card debt that’s now hard to handle. Would it be a good idea to get this loan to pay off my high-interest credit cards with one lower payment? I’m not sure how trustworthy this company is, and my online search didn’t help much. Thanks for any advice.
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3.86% is a great rate, especially since personal loan rates are usually around 10%. Is there a catch? Are you sure this place is trustworthy?
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That’s what I’m unsure about. It seems too good to be true. I just asked about it and got a call from Strategic Consulting.
Remember, it’s not just proposals or terms and conditions that might stop you from borrowing from banks. Make sure you understand the agreements to avoid problems getting a bank loan.
The best loans for consolidating credit card debt are zero-interest balance transfer credit cards. Citi Bank currently offers one with 0% interest for 18 months. I was recently approved for about $10,000 with this offer.
Debt consolidation companies can be unreliable. I’ve found it’s better to cut expenses to the basics and focus on increasing my income while working hard to pay off debt.
3.8% might be suspiciously low. It’s probably a temporary teaser rate for the first 90 days or something similar. Check the fine print carefully.
BankRate shows that consolidation loan rates usually start around 8-9% from different lenders.
EDIT: They might raise the rate to 15% after a few months and hit you with fees for balance transfers. Lower interest rates are good, but you can’t just borrow your way out of debt.
This is a scam and a bait-and-switch. They can’t actually give you loans. Instead, they offer debt settlement, which will damage your credit. You’re better off filing for bankruptcy than using their service.
Contact your creditors directly to set up a payment plan so you avoid collections. They’re usually willing to work with you. All these companies do is hurt people’s credit.
I got the same letter. Is #PantherLending a reliable company?