Is a Personal Loan a Good Way to Consolidate Debt?
There are many ways you can consolidate or pay off your debts. For example, some individuals use home equity loans and others choose balance transfer credit cards.
Personal loans are often a better option as they require zero collateral and sometimes feature fixed rates so you know what you’ll need to pay each month for the life of your loan. Plus, consolidation through a personal loan can often lower your monthly payments, making them much more manageable.
For the best results, you’ll need to make sure you choose a personal loan with a lower interest rate than you currently have. Otherwise, you’ll end up paying more in the end. We recommend using a personal debt consolidation calculator to determine if it’s right for you.
Should I Use a Personal Loan to Pay Off Credit Cards?
Have multiple credit cards? If so, you’re no stranger to costly variable interest rates that go up and down over time. These rates can make it difficult to pay off your debts.
Consolidating your credit cards into one low-interest personal loan could lower your monthly payments and shorten the amount of time it will take to pay off your debts. These loans often offer fixed rates, which means you’ll pay the same rate for the life of your loan.
Plus, you’ll no longer need to make payments to several lenders each month. As we mentioned before, you’ll want a personal loan with a lower interest rate than you’re paying currently to save.
How Debt Consolidation Through a Personal Loan Works
The debt consolidation process is pretty straightforward. First, you’ll need to find and apply for a personal loan. You can typically obtain personal loans through banks and credit unions. At United Teletech Financial, we offer low-interest personal loans without fees to all of our members.
Once your application is accepted and you receive access to your funds, you’ll then use them to pay back your lenders. With your accounts now settled, you’ll make one monthly payment on your new personal loan.
Need Help Getting Rid of Debt? Reach Out to Our Team Today!
We know that debt can be difficult and overwhelming to manage on your own. By reaching out to United Teletech Financial, you can receive the help you need to get your finances back on track. If you’re interested in a personal loan, apply online today or give us a call at 866-462-5532.