Should I get a Personal Loan to Pay off my Credit Card Debt?

Everyone at a certain point of time in their life faces a financial crisis. And at such times, borrowing money seems to be the only option available. Plus, credit cards have made spending money easier than ever. In the process of buying products first & paying afterward, people might forget how much debt they’re getting into. It’s good if you are clearing your dues from time to time. However, if you’re missing out on payments, it can lead to a major financial burden over time.

Eventually, this will trap you into debt as the rate of interest will accumulate for paying late. You might get stuck in a very difficult financial situation. Though there are several ways to take care of the situation, paying off the debt by taking a personal loan remains popular and easy. Even finance experts recommend taking personal loans to pay high credit card bills. Mentioned below are some of the benefits of taking a personal loan for paying off credit card debt.

1. Consolidated Payment

It’s difficult to manage more than one credit card, right? It is stressful. If you take a personal loan that sums up the debt of all your credit card debts, it would be highly beneficial. All your bills can be consolidated into one loan. Choose a tenure as you please and pay the total amount in EMIs.

If you are entirely dependent on your credit card, try to clear the dues at the correct time. However, if matters go out of your hand, personal loans are always available at a lower rate of interest.

2. Low rate of interest

When compared with personal loans, the interest offered by credit cards is much higher. If you take a personal loan, the rate of interest might go from 10% to 24%. On the other hand, a credit card might charge as high as 47 percent, which leads to a multiplication of debt rapidly.

And once you pay off all the credit card dues, don’t let your credit card bills become the reason of financial burden ever again.

3. Borrow without collateral

The money that you need might run into thousands and lakhs. Wondering whether you’d be able to get a loan for such a big amount? Don’t worry. You will get easy access to personal loan without the need for any collateral. Several banks and financial firms offer a debt consolidation loan that goes as high as 25 lakhs.

4. Convenient management of your loan

With the invention of this digital world, it has become easier than ever to get access to information regarding your debt. If your loan provider is a leading financial firm or bank, you can get all the information online without having to visit a branch or contact an executive. Just put your user Id & password, and you’ll be seeing your balance, interest statements, and principal statements.

5. Easy raising funds

Time is a precious element when it comes to the consolidation of your debt. Most lenders are aware of such situations. Therefore, they offer quick personal loans, say, within a day or two. With minimal documents and a simple loan procedure, you would be able to get a personal loan. Moreover, the amount will directly be delivered to your account. Therefore, you need to bother collecting cheque or cash.

6. No repayment stress

Once your credit card debt is paid, and everything’s normal again, you can sit back and breathe. By getting a personal loan, you not only buy yourself peace, but you also get more time in your hand to clear off the debt. You would get a longer tenure to pay the personal loan in monthly EMIs. Repaying the money in monthly installations isn’t a burden your shoulders, right?

7. Final Payoff date to you

With accumulating balances, there’s no easier way to deal with it than by taking a personal loan. While taking a loan, you will be assigned a final date for payment. And no, you won’t have to pay it at once. Pay a minimum amount every month, and you’d be done by the last date. Just don’t get indulged in the same habit again, and you will be able to stay away from debt.

CONCLUSION

Now that you know what to do when your credit card loan worries you, the next time something happens like this, don’t be frightened. Also, when you’re taking a loan, make sure you fulfill the eligibility criteria. Most of the financial firms and banks ask for minimum documents and will provide you with an instant loan. Why panic when you have got time on your hand? Also, this doesn’t mean you keep no restrictions while spending from your credit card. Keep yourself under control and avoid getting into such complex situations.