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Nickel Advisors Isn’t Approving Personal Loans for Debt Consolidation

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Nickel Advisors has begun flooding the market with debt consolidation and credit card relief in the mail. 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 2020 Reviews, the personal finance review site, has been following Nickel Advisors, Coral Funding, Neon Funding, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).

According to recent studies, people’s most commonly cited reason for taking out a personal loan was debt consolidation. A study by Bankrate in April collected answers from more than 160,000 participants on why they seek personal loans.

Almost 40% of participants stated that they took out personal loans for debt consolidation in quarter one. Similarly, another 5% of the participants from the study cited credit card refinancing as the primary reason behind seeking a personal loan.

Another report by LendingTree, an online lending marketplace, stated that almost 36% of people seeking a loan were doing so to consolidate debt in December of 2019. Moreover, more than 30% of loan applicants gave the reason of credit card refinancing as their primary motivation behind seeking a loan.

Both sources also showed loans requested for debt consolidation to have the largest dollar amounts. These amounts were quite higher than loans requested for other purposes such as emergency funds, special occasions like weddings, vacations, and even home-related expenses.

What is the Difference Between Credit Card Refinancing and Debt Consolidation?

As shown by the studies mentioned above, the two most common reasons why people seek out a personal loan are either for debt consolidation or credit card refinancing, such as for APR on a high-interest debt. Sometimes, it was even both reasons together. But what exactly is the difference between the two?

To consolidate debt means to combine several different kinds of loans or liabilities into one to make it easy to pay it back. For instance, if you have several credit cards and instead of paying each back separately, you combine them so that you must pay only one monthly bill.

One way to do this is through a personal loan. You can borrow one large personal loan and use that to pay off all your other debts. After that, you just have to focus on paying back that one personal loan every month.

An American usually has around four credit cards, and if each card has different rates, monthly payments, due dates, as it usually does, it can be quite a hassle to keep track of all of them. Therefore, debt consolidation through a personal loan is a good way to make your life easier.

While debt consolidation helps to simplify things for you, credit card refinancing can help you save money by lowering the interest rate on your debts. When you need more time to pay off the balance of a certain debt, but the high interest rates keep pulling you back, you can go for credit card refinancing to get ahead on your payments.

Both of these sound quite different, but you can achieve them both through a personal loan. Personal loans usually come with low interest rates, regardless of whether you get them from a physical bank or an online lending marketplace. However, they’re not always the best option over credit cards, so you need to understand how these loans work before you take one out.

How do These Loans Work?

A personal loan to refinance a credit card or for debt consolidation is somewhat like how you use a balance transfer credit card. However, there are some differences. With a personal loan, the cash is instantly accessible as it is deposited into your checking account.

So, you can use it to pay back other debts right away. After that, you can pay back that personal loan at a fixed low interest rate every month as decided by the loan issuer. Initially, you may have to pay certain service charges or origination fees, but usually, it’s only the interest.

If you’re eligible for it, a balance transfer credit card can also be quite helpful. With these, you have a specific time period, usually between six and 21 months, in which they charge you 0% interest. So, you can pay back all your credit card debt without additional charges.

Moreover, you only have to pay a small percentage as transfer fees, which is usually 2 to 5%, and if you happen to qualify for a no-fee balance transfer card, you don’t even have to pay that transfer fees. You can transfer all your other debt into this card and pay it back within the 0% interest period.

For instance, with the U.S. Bank Visa Platinum Card or the Citi Double Cash Card, you can transfer debt from your other cards to this card for a 3% transfer fee. However, balance transfer credit cards do require you to have an excellent credit score. Personal loans are better in that regard as they are available for people with even good or fair scores.

Average Debt Consolidation Loan

In the studies mentioned at the beginning, the number one reason why people took out a personal loan was for debt consolidation. According to LendingTree, debt consolidation loans in 2018 came to an average of $12,670, while loans for credit card refinancing averaged at $14,107.

According to Bankrate, the amount requested for a personal loan fell between $2,000 and $25,000. However, almost 50% of loans between $10,000 and $24,999, as well as those greater than $25,000, were to consolidate debt.

How Can a Personal Loan Help Save Money?

According to Fed’s data from February of 2020, the average rate on consumer credit cards was around 16.6%. In comparison, the average rate for a two-year personal loan was 9.63%, which is almost half of the credit card.

So, let’s say you had a debt of $10,000 on your credit card. You would have to pay around $2,660 in interest, with the rate of 16.61%. On the other hand, with a $10,000 personal loan, you would only have to pay $1,450 in interest at the rate of 9.63%.

This equals to a saving of more than $1,200. While there are people who find the sudden increase in personal loans quite alarming, it is quite apparent that these personal loans offer quite a few advantages to people who have debts to pay off.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

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Business

Turning Tragedy into Triumph Through Walking With Anthony

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On the morning of February 6, 2010, Anthony Purcell took a moment to admire the churning surf before plunging into the waves off Miami Beach. Though he had made the dive numerous times before, that morning was destined to be different when he crashed into a hidden sandbar, sustaining bruises to his C5 and C6 vertebrae and breaking his neck.

“I was completely submerged and unable to rise to the surface,” Purcell recalls. “Fortunately, my cousin Bernie saw what was happening and came to my rescue. He saved my life, but things would never be the same after that dive.”

Like thousands of others who are confronted with a spinal cord injury (SCI), Purcell plunged headlong into long months of hopelessness and despair. Eventually, however, he learned to turn personal tragedy into triumph as he reached out to fellow SCI victims by launching Walking With Anthony.

Living with SCI: the first dark days

Initial rehabilitation for those with SCIs takes an average of three to six months, during which time they must relearn hundreds of fundamental skills and adjust to what feels like an entirely new body. Unfortunately, after 21 days, Purcell’s insurance stopped paying for this essential treatment, even though he had made only minimal improvement in such a short time.

“Insurance companies cover rehab costs for people with back injuries, but not for people with spinal cord injuries,” explains Purcell. “We were practically thrown to the curb. At that time, I was so immobile that I couldn’t even raise my arms to feed myself.”

Instead of giving up, Purcell’s mother chose to battle his SCI with long-term rehab. She enrolled Purcell in Project Walk, a rehabilitation facility located in Carlsbad, California, but one that came with an annual cost of over $100,000.

“My parents paid for rehabilitation treatment for over three years,” says Purcell. “Throughout that time, they taught me the importance of patience, compassion, and unconditional love.”

Yet despite his family’s support, Purcell still struggled. “Those were dark days when I couldn’t bring myself to accept the bleak prognosis ahead of me,” he says. “I faced life in a wheelchair and the never-ending struggle for healthcare access, coverage, and advocacy. I hit my share of low points, and there were times when I seriously contemplated giving up on life altogether.”

Purcell finds a new purpose in helping others with SCIs

After long months of depression and self-doubt, Purcell’s mother determined it was time for her son to find purpose beyond rehabilitation.

“My mom suggested I start Walking With Anthony to show people with spinal cord injuries that they were not alone,” Purcell remarks. “When I began to focus on other people besides myself, I realized that people all around the world with spinal cord injuries were suffering because of restrictions on coverage and healthcare access. The question that plagued me most was, ‘What about the people with spinal cord injuries who cannot afford the cost of rehabilitation?’ I had no idea how they were managing.”

Purcell and his mother knew they wanted to make a difference for other people with SCIs, starting with the creation of grants to help cover essentials like assistive technology and emergency finances. To date, they have helped over 100 SCI patients get back on their feet after suffering a similar life-altering accident.

Purcell demonstrates the power and necessity of rehab for people with SCIs

After targeted rehab, Purcell’s physical and mental health improved drastically. Today, he is able to care for himself, drive his own car, and has even returned to work.

“Thanks to my family’s financial and emotional support, I am making amazing physical improvement,” Purcell comments. “I mustered the strength to rebuild my life and even found the nerve to message Karen, a high school classmate I’d always had a thing for. We reconnected, our friendship evolved into love, and we tied the knot in 2017.”

After all that, Purcell found the drive to push toward one further personal triumph. He married but did not believe a family was in his future. Regardless of his remarkable progress, physicians told him biological children were not an option.

Despite being paralyzed from the chest down, Purcell continued to look for hope. Finally, Dr. Jesse Mills of UCLA Health’s Male Reproductive Medicine department assured Purcell and his wife that the right medical care and in vitro fertilization could make their dream of becoming parents a reality.

“Payton joined our family in the spring of 2023,” Purcell reports. “For so long, I believed my spinal cord injury had taken everything I cared about, but now I am grateful every day. I work to help other people with spinal cord injuries find the same joy and hope. We provide them with access to specialists, funding to pay for innovative treatments, and the desire to move forward with a focus on the future.”

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