With Credit Card Debt, Does a Personal Loan Make Sense Right Now?
Credit card debt is a real burden. It can prevent you from making big financial decisions, from getting approved for loans or a mortgage, and it can even limit other options in your life like where you live and whether you change your job. If you have credit card debt that is weighing you down, it may make sense to take out a personal loan. There are several reasons to consider this move.
A Personal Loan Helps Consolidate Debt
One reason you may want to try using a personal loan right now is to consolidate debt. If you have debt on several cards you run the risk of missing payments, having late fees to pay, and generally taking longer to pay down all that debt. With a personal loan you can pay off big chunks of that debt, like one card at a time for instance, and have fewer, ultimately just one, payments to make. This simplifies your financial life and also makes it easier to make payments on time and to clear up debt sooner.
Use Personal Loans to Avoid Further Credit Card Debt
Another good reason to use a personal loan when you have credit card debt is to avoid making it worse. The last thing you want to do when you’re carrying that kind of debt is to add to it. You need to whittle it away, not build it up even more. Credit card debt is damaging to your finances and your future. So if you find you’re in a bind, with an emergency expense or weekly bills, resist the temptation to use your credit cards again. Instead, consider other options like a small personal loan that is based on your payday and not your credit.
How Does a Personal Loan Work?
This depends on the type you choose, but if you go with an online payday loan you get several advantages. For this kind of loan you apply online or with a mobile app, which takes just minutes. Then you get connected to a lender who can provide you with the best chance of getting approved regardless of your current credit score. Once approved, that lender will send cash to your bank account. You can access it as soon as your bank makes it available, typically by the next business morning. To repay the personal loan you simply let the lender withdraw what you owe on your next payday. It’s simple, fast, affordable, and convenient.
A Personal Loan Almost Always Beats Credit Card Debt
There may be a time and a place for using credit cards, especially if you can afford to repay them fully and on time. But, for many working Americans, the online personal loan makes much more sense. It’s quick and easy, and it gets you only the amount you need, never more. This means you can avoid big debt. And best of all these loans are repaid quickly so you don’t carry around a lot of debt for months or longer.