If you’re juggling debt on multiple credit cards, how do you decide which to pay off first? The longer you take, the more high-interest rate fees you’ll add on. Even if you’re making the minimum payments each month, it may result in additional fees that put you deeper into debt.
Instead of making payments on multiple credit cards, consider paying off what you owe through a personal loan for debt consolidation. Here are the factors you should consider in your debt repayment strategy for credit cards, and whether loans for credit card debt are the best option for you.
Credit Cards Have Late Fees
When you aren’t able to pay credit card statements on time, your credit card company will charge late fees. In some cases, your minimum payment will increase as the balance does. This makes debt difficult to pay off and puts you into a vicious cycle of increased balances owed. It’s best to pay your credit cards on time to avoid additional fees that could be tacked on to your existing debt.
Credit Cards Can Become Delinquent
When a cardholder falls behind on making the required monthly payments, they are considered delinquent, and their credit score is impacted negatively. Credit cards have a minimum payment requirement on each statement that you’ve agreed to as part of your card’s terms. If you are unable to repay this amount, you break the terms of your agreement with the lender, and your account becomes delinquent.
Related: How To Get A Loan With Bad Credit
Find a Consolidation Loan with Lendah
The more cards you’re having to pay off, the easier it becomes to forget a payment date. Instead, make the choice to combine your debt into one monthly and manageable payment through a debt consolidation loan.
These types of personal loans often have lower interest rates and lower payment amounts compared to credit cards. Additionally, frequent on-time payments can improve your credit score and financial health. If you need help finding the best unsecured loans – talk to Lendah. We can help you find a loan option, no matter your credit or monthly income. Best of all, it only takes one application to find all your options, and YOU choose what works for you!
If you have questions about debt consolidation loans, speak to our team of knowledgeable professionals. Our compassionate loan matchmakers will find the best terms tailored to your unique situation with fast approval and rates starting as low as 3.84% for amounts up to $100,000.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.