Old Dominion Associates Debt consolidation loan Scam Targets Debt Consolidation Customers

Old Dominion Associates personal finance and debt consolidation offers are bait and switch. Old Dominion Associates has begun flooding the market with debt consolidation and credit card relief offers in the mail with the website mymemphisassociates.com. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect.

The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2021 Reviews, the personal finance review site, has been following Old Dominion Associates, Harrison Funding, Johnson Funding, Taft Financial, Tate Advisors, Plymouth Associates, Credit 9, Americor Funding, Safe Path Advisors, Silvertail Associates, etc.).

If you need to finance your home improvement project or pay off a balance, then you must be weighing your options. Credit card loans and debt consolidation loans are the most popular choices for financing such endeavors. But how do you decide which option is better for your given situation? The right financing option depends on a lot of factors, such as the repayment term, interest rate on loan, your credit score, credit history, etc.

It’s essential to understand the terms and conditions of each loan type to make the right decision. Lack of research can lead you to take a loan, which costs you a lot in the long run. To help you figure out the right choice between a credit card loan and a debt consolidation loan, we will explain everything that you need to know in this article. Keep reading to learn more!

Debt Consolidation vs. Credit Card Loans

In order to make the right financing decision, you’ll have to understand what each of the loan types entails and what are their pros and cons. Let’s have a look below! And before you make any decision, do your due diligence and make sure not to fall for a debt consolidation scam.

Credit Card Loans

Credit card loans are the payments that you make through your card. As a credit cardholder, you have access to a revolving line of credit with a certain limit. You can use your card to finance anything at any time within that limit. You’re then required to make at least a specified minimum payment each month to pay off that balance. You’re charged an interest rate if you carry a balance for too long. 

Pros of credit card loans:

  • Credit cards are simply convenient. They are easy to acquire, and once you have them, you can use them anytime to finance anything within the limit.
  • Most credit card companies offer a low introductory interest rate on your loans. During this time, you are not charged any interest on your balance.
  • Credit cards are widely accepted, so you can use them anywhere to purchase whatever you need.
  • Once you pay off the minimum required amount, you can take another loan or finance something else right away. You don’t have to reapply.
  • Credit cards come with rewards and benefits. Most companies offer free miles on plane tickets, extended product warranties, or special discounts on partner brands, etc.

Cons of credit card loans:

  • Due to the convenience of credit cards, it’s easier to acquire more debt than you can pay off, which can put you in a difficult financial position and in need of credit card relief.
  • If you aren’t committed to your budget, it’s easier to go overboard with a credit card.
  • If you sign up for a credit for the benefit of an introductory period rate but fail to pay off your balance during that period, you’ll be charged much higher interest on that debt.
  • The interest rates of credit cards aren’t fixed. They can keep changing.

Debt consolidation loans for Credit Cards

A personal loan for debt consolidation is a type of debt that you have to pay back in fixed installments over a specified period of time. These loans also come with a fixed interest rate. Different lenders can have different eligibility requirements for you to qualify as a borrower. In some cases, you can even pay back the loan before the term ends without any penalty.

A debt consolidation loan is provided in a lump sum, which you gradually pay back over a fixed term as per your agreement with the lender. Debt consolidation loans can be taken to finance anything. Whether you want to consolidate your debt, finance your wedding, or renovate your home, a debt consolidation loan can be taken for all of these reasons and more.

You can apply for a debt consolidation loan from three types of lenders: banks, credit unions, and online lenders. Online lenders are known for offering loans at lower interest rates and flexible terms. If you have a good credit score, you’re more likely to get a lower interest rate on your loans. Make sure you do your research to compare different lenders and find the best offer for yourself. 

Pros of debt consolidation loans:

  • The cost of debt consolidation loans is upfront, so you always know exactly how much you owe and how long you will need to make the payments.
  • Debt consolidation loans have a fixed repayment term, which can help you plan your finances and budget accurately.
  • Debt consolidation loans usually have a term ranging from one to five years.
  • Debt consolidation loans are usually offered with a fixed interest rate.
  • Most lenders allow you to pay off the loan earlier without any penalty.
  • If you’re making regular and timely payments, your loan will be paid off at the end of the agreed term.
  • Debt consolidation loans offer a lower APR than credit card loans.

Cons of debt consolidation loans:

  • In some cases, debt consolidation loans can be more expensive than credit card loans if the lender charges additional fees depending on the amount and your credit score.
  • Debt consolidation loans don’t offer an introductory period of 0% interest rate.
  • Interest rates on debt consolidation loans are higher than secured loans like mortgage or automobile loans. 

Should I take a debt consolidation loan or a credit card loan?

Debt consolidation loans are a better choice when:

  • You need a large sum.
  • You want monthly payments to be predictable.
  • You need a longer time to repay the loan.

Credit cards are a better option when:

  • You need money on a revolving or recurring basis.
  • You have to make smaller purchases.
  • You’re in good financial standing and can pay off your monthly bills comfortably.
  • You can qualify for a zero0interest promotion or introductory period.

Final Thoughts

Whether you should go with a credit card loan or a debt consolidation loan varies depending on your needs and financial situation. Credit cards are ideal for smaller purchases, while debt consolidation loans are a better choice if you want to repay the loan over a longer-term.