Today’s modern lifestyles can often lead to money handling trouble. Consolidating your bills into a personal loan can help resolve your budget problems. If you have considerable credit card debt or medical bills that are on the verge of going to collections, borrowing a personal loan can prevent late fees and problems resulting from missed payments. If these sound all too familiar, then you should read these reasons for consolidating your debt:
Save on High Interest Rates
If you have high interest rates on your credit cards, a personal loan with a lower interest rate can considerably reduce how much you’re paying. Paying a few dollars a month for interest may not seem like much, but it adds up the longer it takes to payoff your credit cards.
Convert Variable Interest Rates to One Fixed Rate Loan
Personal loans often have fixed interest rates. That means no surprises due to rate changes that often happen with credit cards. There are a lot of different factors that can trigger changes in your credit card interest rate, which makes budgeting stressful.
Consolidate and Pay Off Debt for Good
If you’re serious about paying off debts, a personal loan could save the day. Here’s why. A personal consolidation loan is made for a set sum with a fixed interest rate. You’ll be able to pay your loan according to a planned payment schedule with set monthly payments. Once you payoff the personal debt consolidation loan, you’ll be debt free.
No Balance Transfer Fees
If you’ve transferred balances between credit cards before then you’ve seen that transfer fees have considerable costs. Lenders may charge a nominal loan fee, but typically the costs charged by loan lenders is a fraction of what credit card companies charge. However, there are exceptions so be sure to read the fine print and compare the fees between the loan or credit card.