Companies advertising financial debt relief online may not be the best way to relieve charge card financial debt. Do-it-yourselfers might get better results investigating such possibilities as a personal loan. Personal responsibility is the most direct route to a better credit rating and substantial savings on reduced interest rates within the future. Article resource – Using a personal loan for credit card debt could be interesting by Money Blog Newz.
The expenses of credit card debt
To find a more manageable way to pay off credit card debt, consider a personal cash loan. Depending on what your credit score is, personal loans interest is at a lower rate than credit card interest rates. The interest is compounded daily with credit cards which is why the high rates makes it overwhelming for people to pay their debt. Some credit cards sock consumers with interest rates up to 29 %. It's going to be really hard for those who have $10,000 in credit card debt. Imagine that with a 29 percent interest rate. It would take you 143 months to pay it off with the minimum $250 a month payment. That means 12 years will be used.
All about personel loans
Using a personal loans for credit card debt relief can save a lot of money with a lower interest rate. Make sure you get the best rate. You can try looking at banks and credit unions. Generally between 5 and 8 % interest is found on personal loans. Don't just talk to one financial institution. Make sure you talk to three. Tell them what is going on. Be honest about it all. If you are able to manage to find a lender who’ll give you a personal loans at 6 %, that $10,000 could be paid off in 45 months (less than four years) with the same monthly payment.
The way good credit can save you cash
If you get rid of all your credit card debt and pay back your personel loans, you could have a better credit rating. This can benefit you in many ways. You can get about 6 percent on a car loan right now for those who have a good credit score. Got a poor credit report? Then you would pay about 13 % for the same thing. That amounts to thousands of dollars over the life of the loan. Are you interested in a mortgage loan on a $300,000 home? Well you may conserve $100,000 for those who have a good credit score.
Info from
CreditLoan.com
creditloan.com/blog/2010/11/08/how-much-does-having-bad-credit-cost/
WTOL.com
wtol.com/Global/story.asp?S=13551207
Why the credit card debt costs too much
To find a more manageable way to pay off credit card debt, consider a personal loan. Compared to a credit card, a personal loan can have a much lower interest rate, depending on your credit score. The debt with credit cards is extremely overwhelming for some. This is because the high rates are compounded daily for credit cards. Interest rates can be as high as 29 percent for some credit card consumers. If you had 29 percent interest on $10,000 in credit card debt, you're going to be losing a lot of money. If you paid the minimum monthly payment of $250 every month it would take 143 months to pay off — that’s 12 years.
What you should know about personal loans
Using a personal loan for credit card debt relief can save a lot of money with a lower interest rate. Make sure you get the best rate. You can try looking at banks and credit unions. Usually between 5 and 8 percent interest is found on personal loans. Talk to three financial institutions before making a decision. Be honest, and don’t be afraid to explain your situation. If you were to get a lender that was willing to give you 6 percent on your personal loan, then that same monthly payment on the $10,000 would get the bill paid off in 45 months instead. That is less than four years.
Saving with good credit
By getting rid of credit card debt and faithfully paying down the personal loan, a better credit score will bring many future benefits. It is good to have a good credit score when getting an auto loan right now. If it is good, then you can get a 6 percent interest rate on your auto loan. Got a bad credit report? Then you would pay about 13 percent for the same thing. The life of the loan will leave you with thousands of dollars less. For a mortgage loan on a $300,000 home, a good credit score will save hundreds of dollars a month in interest and could add up to $100,000 when it’s all over.
Articles cited
CreditLoan.com
creditloan.com/blog/2010/11/08/how-much-does-having-bad-credit-cost/
WTOL.com
wtol.com/Global/story.asp?S=13551207
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