Debt consolidation is a strategy which you can use to roll multiple debts into a new, single payment. There are many ways to achieve this, including balance transfer cards, unsecured personal loans, 401(k) loans and home equity loans/lines of credit.
Of all of these ways, consolidating your credit card debt with an unsecured personal loan remains the most beneficial route. This particular route comes with advantages such as the points highlighted below.
1. Lower Interest Rates
Consolidating your credit card debts with an unsecured personal loan gives you the opportunity to enjoy lower interest rates on your debts. If you have good credit, you can enjoy low interest rates which you might not be able to get with other means. Also, with an unsecured personal loan, you can get qualified for this rate without a hard inquiry, unlike most banks and credit unions.
2. Fixed Interest Rate & Monthly Payment
Another reason why you should consolidate your credit card debt with an unsecured personal loan is that it offers you a fixed interest rate and monthly payment. This means that regardless of the surrounding circumstances, your interest rate and monthly payments do not get affected, thereby helping you to pay off your debt faster. It also gives you an exact repayment period to pay off your entire debt.
3. Access Funds for Other Purposes
Lastly, consolidating your credit card debt with an unsecured personal loan gives you the opportunity to use the loan for any other large purchases or to finance any other purpose you need. For instance, when you get the loan, you can use a part of it to offset your credit card debts and the remaining to buy a new mattress or install new windows in your home.
You should consider consolidating your credit card debts with an unsecured personal loan to enjoy the above benefits and many more. American Direct Financial provides low-interest unsecured personal loans that you can use to consolidate your credit cards debt. Apply now to get your loan quickly!