Why Use a Personal Loan to Pay Off Credit Cards?
This topic comes up in many personal finance discussions. Many people are finding it useful to get a personal loan to pay off credit cards. Sometimes it can makes sense and here are a few key reasons why you might want to utilize a personal loan.
Pay Off Multiple Credit Cards and Have Just 1 Payment
Depending on how financially disciplined you are may be a deciding factor. Some people have multiple credit card bills at varying interest rates. Some of those APR or annual percentage rates can be as high as 18% or more. Many people are just paying the minimum balance without really knowing how long it will take them to pay off a credit card.
The beauty of a personal loan is that you can pay off all the credit cards at once and just have on fixed rate payment. This can actually help you focus on the one loan and pay it off quicker if you stay disciplined.
Revolving Credit vs Fixed End Date
Another reason the personal loan has some advantages is that you know the end date. This may be 24 months, 36 months or even up to 5 years. Either way you know exactly when it will be paid off. The issue with credit cards is that there is no end date. You pay it down a little and then charge more. Even worse is the banks are usually wanting to increase your limits. This allows even more change to rack up more on the card and make it an endless process of attempting to get it paid off.
This is why a personal loan to pay off credit cards can be an excellent choice.
Where Can I Apply For a Personal Loan to Pay Off Credit Cards?
There are some really great choices out there for online personal loans. The process is easy and you can fill out just 1 simple form in minutes. We will list below a few good choices for personal loans. These all can be completed 100% online from the convenience of your home or work.
Peer to peer lending has become extremely popular. Individual investors fund your loan through a lending platform. Lending Club is the largest peer to peer lenders. To learn more or to apply just visit their site at LendingClub.com
Another good option is a loan network. You just fill out one easy form and get matched to lenders that will provide personal loans. We recommend you using PersonalLoans.com where you get access to their large network of lenders.
Personal Loans Depot
You can get started quickly by checking out PersonalLoansDepot.com
It is a good option for those with a average credit score or even a lower credit score. They will match you to an appropriate lender that will assist you.
The bottom line is that if you have a high interest credit card or multiple credit cards, using a personal loan can be a great way to get them paid off.
You will find having one fixed rate payment with an end date is the only real way to get debt paid off completely.
Carrying around revolving credit such as with credit cards can be a trap to paying high interest for years.
Apply for a personal loan through any of the choice above. Get started now paying off credit cards permanently.