When credit card bills start piling up, consumers often experience the feeling of drowning in debt, with no end in sight due to high compounding interest rates. Aside from the stress of juggling multiple card balances, high credit card debt can also have a negative effect on your credit score, which can create even more financial hardship.
If paying off multiple outstanding balances is too much to bear, it could be time to consider consolidating credit card debt via a personal loan.
Using Fiona, customers can get matched with personalized loan offers after just a few clicks.
How Does a Personal Loan Ease Credit Card Debt?
While some may question the notion of taking out a personal loan to address credit debt, the benefits are pretty straightforward and universal. By consolidating multiple credit card balances from various issuers, a consumer can reassign all their worrisome debt into one easy payment. It’s essentially like starting from scratch, and only having to answer to one lender with one simple, monthly payment.
Lock in a Lower Interest Rate
Perhaps the best benefit of consolidating credit card debt, through a personal loan, is saying goodbye to high preexisting interest rates, and hello to a new reduced interest rate. While credit card interest rates can easily exceed 20%, especially for customers with worse credit history, borrowers applying for a personal loan can lock in a fixed APR (annual percentage rate, which calculates monthly interest and all applicable fees) in the range of 12%.
Find out what interest rates are available by using Fiona, where you can compare the best personalized loan offers.
Pay Back Loan on Your Terms
Another reason to consolidate debt through a personal loan is to dictate the payment period with brand new loan terms. Borrowers can choose terms from 24 to 84 months, which represents the length of how long it will take to repay the loan if estimated monthly payments are met. This is a great option for borrowers who want to repay their loan back quicker, and save money on interest, as well those who need more time to pay and are less concerned with saving on the backend.
While it may make sense for some to pay off mounting credit debt through a large sum, others don’t have that luxury. Luckily, personal loans are a great way to consolidate debt and save money thanks to lower interest rates. It also provides greater peace of mind to deal with one new lender, as opposed to multiple card issuers. To find the perfect personal loan offer for your debt consolidation, try Fiona today.