In November 2017, The Federal Reserve said that total U.S. credit card debt equaled over 1.02 trillion dollars. Many Americans are struggling with credit card debt and are looking for a low-interest way to pay it off. At this point, the idea of actually paying off that credit card debt seems like a dream. What some Americans don’t realize is there is a way to make low-interest payments on your credit card debt if you’re able to get a personal loan.
What’s A Personal Loan?
When you receive a personal loan, you receive the total amount of the loan at one time. You are free to do what you wish with the loan. Most personal loans are unsecured, which means you aren’t putting down any collateral. This is different from other types of loans, that sometimes require something such as your home as a form of collateral.
You can use a personal loan to consolidate credit card debt. Often times, the interest rate on a credit card is much lower than the rate on a personal loan. Those with high credit scores could find personal loan interest rates for as low as six percent. To compare, the average credit card interest rate in January 2018 was sixteen percent.
Personal loans are the best option for anyone with a large amount of credit card debt. This allows you to completely pay off your credit card, and begin making lower-interest payments on your personal loan. Keep in mind, many lenders have a personal loan minimum somewhere around $1,000, so this only works if you have a lot of credit card debt.
Saving money on interest means you could possibly be debt-free sooner. If you’re still struggling to resolve your debt, the experts here at Shoreline Finance can help you find the most efficient way to do so. Don’t hesitate to contact us today.