Paying off multiple credit cards every month can be straining, confusing, and painfully easy to forget. However, this juggling act can be avoided by opting for a personal loan. Pay off credit card debt by consolidating your credit card balances into a single personal loan. This strategy can save money on high-interest rates while making it easier to plan out monthly payments.
Completely Pay Off Credit Card Debt
Personal loans are extremely attractive options for those struggling with weighty credit card debt. They can help you pay off credit card debt in full, relieve you of demoralizing financial stress, and even give your credit score a slight boost. Just remember that leveraging a personal loan doesn’t render you debt-free; the loan will still require payment after you’ve paid off your credit balances. Still, paying off those heavier debts means ridding yourself of the high-interest rates attached to them, which will save you money in the long run.
Lower Interest Rates Play to Your Favor
There’s also a chance that you’ll receive a lower interest rate on a personal loan than that of your current credit card debt. The average credit card interest rate sits at around 16% APR. However, some of the best personal loans on the market can be as low as 6% APR. Your actual interest rate is dependent on your personal credit score, the borrowed amount, and your specific loan terms, though it’s likely that a personal loan will build less interest than your credit card balances. So, using a personal loan to pay off credit card debt can help you save countless dollars on interest accumulation.
Consolidate Multiple Debts into One Monthly Payment
Credit card debt often gets out of hand when it’s spread across multiple cards. It splits your payment obligations into a handful of separate payments every month. This balancing act can be difficult to maintain and autopay features often lead to overdraft charges if left unchecked.
By opting for a personal loan, you can effectively consolidate your fragmented credit card debt into one collective monthly payment. Having this kind of simplicity and predictability with your monthly debts makes it easier to set money aside and plan out those payments, which can speed up the rate at which you pay off credit card debt.
In most cases, larger monthly payments towards a personal loan translates to more money saved by avoiding high credit card interest rates. If you have any further 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.