The truth about credit card debt is that more than forty-one percent of households have debt linked to credit cards. The median debt is a little over two thousand dollars, while the average is almost six thousand dollars.
When you are in credit card debt, it can often feel overwhelming. For this reason, many look for ways to pay it off sooner instead of later. One way many people attempt to do this is by taking out a loan. However, this is often controversial. Some people believe that it is a smart decision while others don't think it is.
Here are some reasons why you should get a loan to pay off your credit cards.
Consolidate several credit card payments. When you owe money on more than one credit card, there are times when it feels like you are struggling to pay the minimum for each of them. When you do have a little extra money to put toward your credit card bills, it can be hard to figure out where it should go.
By consolidating them all together, you have one bill to pay every month so you can focus all of your time and energy into paying that bill.
Lower monthly payments. Many people find that when they get a loan instead of having several credit card payments, they are able to pay less each month. That being said, it is a good idea to pay more than the minimum to help you get out of debt quicker.
Lower interest rates. Most credit cards have very high interest rates so a loan with much lower interest rates could save you a lot of money in the future.
Not only could your monthly payments be more affordable, having a lower interest rate will allow you to pay more toward your principal each month. You will find yourself out of debt faster, plus you will end up paying less in the end.
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