No one likes to be in debt but, for most people, it is just a part of life. Unfortunately, credit card debt can easily become overwhelming and create a financially unstable situation. Instead of sticking to paying the minimums to multiple cards each month with no hope in sight, Credit Card Loans could offer a simple solution.
Decreased Interest Rate
Credit cards come with a pretty high price tag. Take some time to check out the various interest rates you are paying on the different credit cards being used. You might be surprised to learn that some are running rates of 20% or more on your debt. The minimum monthly payment you make each month could only be putting a small dent in the overall debt. Consolidating the bills into one loan usually results in a lower interest rate.
Make Only One Payment per Month
How many different bills are you paying each month? Multiple credit cards mean multiple checks, multiple stamps, and a lot of information to keep track of. Credit Card Loans allow you to bring all of the debt under one roof. You only need to make one monthly payment to one entity. It can save you time and money as you look to pay bills each month. Being able to see your debt all in one place has lots of different benefits.
The End is in Sight
You want to be debt-free, but with various credit cards or loan accounts it can be tough to see the big picture and understand just how much you owe. By using a loan and consolidating everything together, it is much easier to see the amount that you owe, how much needs to be paid each month, and what is is going to take to get you out of debt. Making a plan to pay off one loan is simple compared to coming up with a plan that includes multiple accounts and debts.
Should you take advantage of a loan to pay off credit cards? Look through your current debts. Find out how much you are paying in interest, how much time it takes to pay multiple accounts, and how long it might take you to pay off the debt. If a loan for credit cards seems like a better solution, contact Pearl Harbor Federal Credit Union today.
