Consolidating credit card debt into one loan updating old reader boards
With a personal loan you’ll have just one repayment to make every week, fortnight or month over a set term – you can usually choose your own frequency of repayments.And if the interest rate on the personal loan is lower than your credit card rates – and they often can be – this can help you get ahead in reducing your overall debt.The interest rate on one card may be significantly higher than the others – and if the highest rate is on the card with the ,500 debt, you could be paying plenty each month just to cover the interest, let alone paying down the debt itself.One option you have to consolidate your debts is to take out a single personal loan to pay off each credit card and any outstanding interest.Credit cards, while convenient, make it easy to get into and stay in debt.If you have debt across multiple credit cards that you’re repaying, you may be able to reduce the interest and fees you’re paying by consolidating them into one account.) who have decided to invest small amounts of their own money into each loan (a process called P2P lending).So, instead of paying a credit card company a high rate, you can consolidate your debts into one loan - at a low rate - while cutting out the banks and credit card companies altogether!
But if you’re struggling to balance your debt repayments, debt consolidation may well be worth considering.
If you're not in debt - or if your debt is at a very low introductory or promotional interest rate - there is NO reason to consolidate your debt into a loan.
(The advantage comes from the lower interest rate.) However, if you are carrying credit card balances at high interest rates, it makes sense to consolidate as much of your credit card debt as possible into a personal loan.
There are a few ways you can do this, including a balance transfer, a debt consolidation loan, a personal loan or a peer-to-peer loan.
You can learn more about your options in the guide below and decide which one is right for you.
Debt consolidation is bringing all your existing debts together into one new debt, which can help you manage your repayments and give you a clearer picture of your financial future.