Consolidate Your Credit Card Debt Through A Personal Loan

Post by Sharat on January 14, 2018 · Under loans · Comments Off on Consolidate Your Credit Card Debt Through A Personal Loan 

So we’re just into the second week of the new year and you are probably still feeling lots of resolve about sticking to your resolutions. You’ve probably been eating salads and heading to the gym as well as dusting off your piggy banks. If one of your new year’s resolutions is to get out from underneath the mountain of debt you have been under, then you should check out the new unsecured loan product being offer by Westpac.

Shop around for the best deal

If you have lots of credit card debt, then its best to consolidate it all into a single personal loan. If you go with Westpac’s offer you will be entitled to receive 1% per annum off their annual interest rate which at present is 12.99%. Who doesn’t love a great discount? But before you lock in a loan that will cost you 11.99% you should shop around first because there are other lenders willing to make unsecured personal loans at a lower interest rate. For example, ANZ’s personal loan offering has an interest rate of 10.99%. A 1% reduction of interest on a personal loan of $30,000 could save you $915.

Make sure you understand the terms

Whilst it is good news that banks are encouraging borrowers to clear their debt by lowering their interest rates, you should always do your homework and shop around before committing to a loan. Before you begin your journey towards living a debt free life you should make sure you understand all aspects of the loan you are undertaking before applying for one. Personal loans offer lower rates of interest than credit cards and you don’t get multiple bills from different card providers. Unsecured loans do not require you to post collateral like your car for example. Unfortunately, if you find yourself with some extra money you can’t pay off your loan early because the banks lock you in for a minimum period plus there are large upfront costs associated with the loan.

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