IS IT GOOD TO PAY OFF CREDIT CARD DEBT WITH A PERSONAL LOAN?22 June, 2020
By Kankatika Mondal
Credit card bills are usually huge and haunting. It is extremely easy to get trapped in a debt cycle, especially in the case of credit card which is an expensive line of credit. This is so because, in case of credit cards, we aren’t spending real money and this illusion is misleading. Credit cards have exorbitantly high rates of interest which might go up to 47% in some cases. Paying off credit card bills on time is a healthy and smart approach however one missed payment can be very harmful thereby leading to a bigger amount. In fact, one missed payment is rather a pathway for getting trapped into the vicious cycle of never ending credit card debt.
Credit card debt occurs when a customer of a credit card company defaults in paying back the bills to the credit card company. The debt accumulates and results into a massive amount due to the high interest rates and the penalties that are imposed on the outstanding amount when the customers defaults in paying the company the money that he/she has spent.
Personal loans are much more flexible than the credit card. Personal loans have an interest rate ranging from 14% to 30% depending on the credit score of the borrower. Also, the repayment period of personal loans is usually a year. The process to avail these loans is also an easy method. Such personal loans, also known as the debt consolidation loans might be availed at low rates of interest in order to pay off credit card dues. In fact in the best case scenario, such debt consolidation loans would be extremely helpful in paying off the credit card debt more quickly and thereby helping in saving money.
On comparative analysis of both, we can see that, on credit card, a customer is usually charged an interest rate as high as 47% which will eventually result in debt multiplication. Hence, it’s a nobrainer to opt for a personal loan to pay off a credit card debt, as personal loans have lower interest rates. Also, in order to facilitate clearance of huge credit card debt, personal loans are a boon because, it can be easily paid off in monthly EMI which are calculated based on a lower interest rate in contrast to the interest rate charged on credit card usage.
Therefore, opting for a personal loan to pay off a credit card debt is the most logical and wisest choice in order to circumvent ridiculously high interest rates of the credit card debt. However, finding a suitable personal loan lending platform might be a rigorous task. Instead of too much lollygagging over the internet so as to find the best personal loan to cater to your needs, you might as well head to Monexo to avail its debt consolidation or credit card pay off personal loan in order to pay off your credit card dues.
Monexo offers such personal loans at interest rates as low as 13% via a hassle free 100 % online process. Some major benefits of availing personal loans from Monexo are its provision of no hidden charges and a payback period of as long as 36 months. Therefore, we can agree that a personal loan is a great tool to CONCLUDE the never ending trauma of credit card debt. Careful usage of the personal loan will not only help in getting out of debt but will also help save money. So get started and make the most logical choice for withdrawal from vicious cycle of credit card debt!