Dealing with credit card debt can feel like you’re stuck on a never-ending roller coaster of high-interest rates and monthly payments that barely make a dent. But what if there was a way to hit the brakes and find a smoother path to financial freedom? Using a low-interest personal loan to consolidate your credit card debt is a great way to help you save money, simplify your payments, and even boost your credit score.
Let’s dive into why this could be the game-changer you’ve been searching for.
Benefits of a low-interest personal loan
1. Save money on interest
The standout benefit of swapping your credit card debt for a personal loan is the potential to save on interest. Credit cards often come with high APRs, as opposed to personal loans which usually offer much lower rates, depending on your credit history. This means you could end up paying less over the life of your debt, freeing up cash that you can put into savings.
2. One payment, zero hassle
Do you ever feel like you need a personal assistant just to keep track of all your different credit card payments? Consolidating your debt means you’ll only have one payment to think about. It’s like decluttering your financial life — less stress, less fuss, and no more worrying about missing a payment and facing those pesky late fees.
3. Boost your credit score
Taking out a personal loan might cause a tiny dip in your credit score at first (thanks to the initial credit check), but the long-term benefits are greater. By paying off your credit cards, you’re lowering your credit utilisation ratio (aka how much debt you’re carrying compared to your credit limits), which can give your credit score a nice lift (especially if your loan payments are on time).
4. Predictable payments
Credit cards have a way of keeping you guessing with their variable payments and never-ending interest charges. A personal loan, on the other hand, means that you have the same payment at the same time every month until it’s paid off. This predictability will make it much easier for you to plan your spending and savings.
5. A weight off your shoulders
Don’t underestimate the feel-good factor of getting your debt under control. Consolidating your credit card debt into a single personal loan can lift a huge weight off your shoulders. Knowing there’s a clear plan in place to become debt-free can help you sleep better at night and feel more confident about your financial well-being.
Ready to explore options for a low-interest personal loan?
Switching your credit card debt to a low-interest personal loan is a great move to help you save money, streamline your payments, and bring a little peace of mind to your financial life. Say goodbye to credit card stress sooner rather than later with APS low-interest personal loans which are often approved in 48 hours. You can borrow up to $40,000 and pay it off with a fixed interest rate of 8.90%, using your property or car as a security.
Learn more about APS Low-Interest Personal Loans.
Written by Supervisor – Operations, Dale Engberg.
Dale is currently serving as Supervisor – Operations, with 7 years experience in lending and savings. Before this working at a Payroll Company in their clearing house division where he specialized in large account holding and data file writing. Currently, Dale is looking after Personal Lending, Mortgages, Credit Control and Investment Savings Accounts. Dale enjoys spending time with his family and working on PC Hardware. He is also a gaming enthusiast and an avid follower of AFL/AFLW Team Melbourne Demons.