Is it beneficial to pay off credit card debt with a personal loan
Gone are those days when carrying a credit card was used individuals with higher salaries. Getting a credit card these days is easier than your imaginations. Carrying a credit card and maintaining It is not that easy as it seems to be, In most of the cases a credit card user ends up spending more than his pocket and then unable to pay on time and sometimes these debts are huge. If you are under a huge credit card debt, you may be feeling burdened by payments and pending dues. The option of taking a personal loan to clear off your credit card debt is an option you can consider. But you need to make a very calculated decision before applying for a personal loan.
Pros of taking a personal loan to pay off credit card dues:
- You can avail for an unsecured personal loan, at lower interest than your credit card. This can help you in saving help you a good amount of money in interest charges.
- Banks regularly offer you new credit cards with different offers and this tends to multiple card dues as well. If you have multiple credit card dues, then by the help of a personal loan you can limit yourself by making one debt payment on each month at one fixed rate of interest. These personal loans will help you in paying off your debt quicker than if it were to be repaid on individual basis.
- Always try to consolidate your payment and date into one. This process will make things easier for you and chances of missing out any payments will be lesser payments, leading to overdraft or late fees.
- Apart from all these basic reasons, one of the main reasons could be that it could serve as a motivation. With regard to multiple credit card dues, taking a personal loan could give you a sense of priority and help you feel organized.
How can one qualify for a personal loan?
- To borrow from P2P lending companies, one has to fill out an application online. The company then conducts a soft inquiry on the credit report of the borrower. Once the application gets approved, the rate of interest is chosen and this depends on the loan amount, the tenure of the loan and credit score and usage. Peer to peer lending platforms are beneficial for both lenders and borrowers and have been successful in providing the bail-out funds for many.