Why You Should Pay Off Credit Card Debt Using Personal Loan
The use of credit cards encourages us to make purchases even at times when we do not possess the necessary funds at our disposal for the said expenditure. The option of repaying the borrowed amount at a later date eventually leads to spending more than we can afford to, and we are rendered unable to make the final payment. As soon as this repayment is delayed, a sum of debt is accrued and keeps growing as the rate of interest levied on credit cards is quite high. In such a situation, a low interest personal loan is often regarded as the quickest and cheapest way to pay off a credit card debt.
Listed below are a few reasons why you could opt to repay your credit card debt by applying for an online personal loan:
Lower Interest Rates
While the rate of interest on outstanding credit card dues could go up to 45%, personal loans tend to have significantly lower interest rates. So, for the same principle amount, you end up paying a lot less in the case of a personal loan.
Flexibility in Repayment
With a personal loan, you can choose the amount of an EMI that you wish to pay on a monthly basis and the tenure of the loan, during which you will make the payments for the borrowed amount of money. However, with credit card dues, you are supposed to pay the entire outstanding sum to be relieved of further penalties. So, personal loans allow you the freedom to make repayment plans according to your budget and convenience.
Single, Hassle-free Payment
In case you have debts on multiple credit cards, keeping a track of these payments and due dates can be quite confusing. A personal loan would consolidate this into one single payment, making it more organised and easier for you.
In case you come into some extra money, you could pay off a substantial part, or the entire amount, of the loan amount before the scheduled tenure is completed. This saves more money as the principal amount reduces, and consequently so does the interest that you pay. However, this is according to the rules fixed by the lender. In the case of credit cards, it would not reduce the penalties unless you make a full payment for the loan amount.
While using plastic money is easy and convenient, availing a personal loan is not difficult either. Applications are sent online with the necessary paperwork, and after checking the credit score, an approval is provided for the personal loan. With the click of a few buttons, you can easily avail a personal loan online.