The Most Awesome Tables on Achieve

Unsecured Personal Loan

Credit Card

Set interest rate

Variable Interest rate

Specific loan amount

Revolving credit limit

Up to a 5-year loan period

Ongoing loan

Up to $50,000

Based on credit limit

Why it's a good option

What to consider

Debt Snowball

Get a psychological boost when you pay off your first debt.

Easy to use.

It isn’t the most efficient way to save money.

Debt Avalanche

Pay off higher interest debt first. Pay off debt quickly.

Only works if you are strongly disciplined.

Debt Consolidation Loan

Potentially save on interest if you qualify for a low-rate loan. 

Get a more manageable single payment. 

- As this is an unsecured option, you may see higher interest rates than with secured options.

Home Equity Loan

Potentially borrow a larger amount based on your equity. 

Get a lower interest rate due to the loan being secured by your home.

Defaulting could put you at risk of losing your home.

Resolution Program

Reduce what you owe and get out of debt faster than by making minimum monthly payments.

Could negatively affect your credit scores in the short term. 

As debts are settled, your total debt should decrease, thereby improving your debt-to-income ratio and credit score.

Cosigner

Co-borrower

Responsibility for payments

Becomes responsible for making payments only when the borrower fails to do so.

Shares primary responsibility for making payments.

Access to loan money

Does not have any access to, or legal right to use, the loan money or property purchased with it.

Shares access to loan proceeds. If  the loan is used directly to fund a purchase (as with a mortgage or a car loan), shares ownership of the property purchased.

When to consider

What to expect

DIY negotiation

You have the time, patience, and confidence to deal with a lot of details and a lengthy process..

You will spend a lot of time on the phone and may not get the results you’re hoping for.

Professional debt resolution assistance

You have a large amount of debt, are struggling to make minimum payments, and need help with possible solutions.

Debt resolution professionals will review your financial situation, create a personalized plan, and help to resolve your debts.

Chapter 7 bankruptcy

If you have a large amount of debt and low income. 

Visit the United States Courts Chapter 7Information Page

The court will appoint a trustee who will collect and sell your non-exempt assets and pay off your creditors based on the court’s decision.

Chapter 13 bankruptcy

If you have a steady income but have fallen behind on your debt.

Visit the United States Courts Chapter 13 Information Page

The court will appoint a trustee and control your payment plan.

Other alternatives

If you have good credit, a steady source of income, and can afford more than your minimum payments.

You may be able to qualify for a debt consolidation loan, a home equity loan or a home equity line of credit.

Interest Rates

Fixed

Variable

APRs

Slightly higher

Slightly lower

Funds disbursement

Lump sum

Line of credit

Repayment terms

10-30 years of fixed payments

First 5-10 years: Interest-only payments Last 10-20 years: interest and principal

Best for

Debt consolidation, large home improvement projects, major purchases

Ongoing home improvement projects, college tuition payments, medical exp

HOME EQUITY LOANS

HELOCS

Interest Rates

Fixed

Variable

APRs

Slightly higher

Slightly lower

Funds disbursement

Lump sum

Line of credit

Repayment terms

10-30 years of fixed payments

First 5-10 years: Interest-only payments Last 10-20 years: interest and principal

Best for

Debt consolidation, large home improvement projects, major purchases

Ongoing home improvement projects, college tuition payments, medical expenses

$200,000 Loan Amount

20-Year Fixed

30-Year Fixed

Mortgage Rate:

4.5%

5%

Monthly Payment:

$1,265

$1,074

Monthly Difference Saved:

—

$216

Loan Life Interest:

$103671.70

$186,511.57

Loan Life Interest Saved:

$82,839.87

—