Credit Card is like a magic wand that fulfils our desires. It doesn’t matter if you currently don’t have money to shop for goods that you like if you have a credit card in your pocket you can own anything.
But a person needs to be aware while using the powers of a credit card, if not managed properly you meet face to face with a serious debt trap. Credit Card Debts are a major financial crisis which many individuals suffer in this modern era. Credit cards expenses come with serious consequences.
What are the factors that lead to credit card debt?
Factors that can lead you to Credit card Debt-
- The Temptation to overspend
- Unexpected Expenses
- Consumer Culture
- Medical Bills
Your Credit card debt crisis requires a fast solution as there are major risks that you will face with passing time. Paying up for credit card debts with a personal loan is an effective strategy that can save you in this crisis. Using a personal loan for a credit card is also known as “credit card consolidation loan” where you convert your credit card debt in a personal loan that has tenure for about 3-7 years depending upon the lender.
Why Choose to Consolidate Credit Card Debt?
Here are some reasons for you to consider a credit card consolidation-
Saves you from High Rate of Interest-
Credit card interest rate is much higher than the mortgage loan, student loan or auto loan. Higher interest rates are a good reason that you choose to consolidate your credit card debts. On comparing with the personal loan there is interest rate much lesser and you get a benefit to repay that amount in tenure of 3-7 years.
You can avoid Variable Interest Rate
Credit Card interest rate are variable your interest rate can increase if Federal Reserve increases its interest rate. You need to avoid the situation of paying more money with each passing month. Personal loans offer a fixed interest rate option that you can choose.
Personal loans offer Flexible repayment option
A personal loan is a smart strategy by which you get the power to manage your repayment according to your income. By choosing a flexible loan repayment option you can pay more when and save your interest cost.
Points to Consider?
While asking for consolidation lender will check your credit profile, which includes your income, bank statement, credit card score to determine your interest rate. If you are offered interest rate lower than your credit card debt than it is financially the best option for you to consolidate credit card debt with a personal loan.
How to get a personal loan for credit card debt repayment?
Getting a personal loan for consolidation is very easy if you are living in a city like Kolkata as there are many banks and lenders available you get plenty of options to choose from. Also, with an easy internet search, you can get personal loan in Kolkata with fast approvals and simple documentation facilitated by personal loan venders.
Easy Steps to apply for a Personal Loan Online-
- Step 1-Enter your personal, financial, and employment details.
- Step 2-Choose the loan amount and tenor that you require and get instant approval.
- Step 3-Submit your documents to the representative, who will get in touch with you.
- Step 4-Receive the money in your bank account within 24 hours.
Following these steps, you can easily apply for a personal loan in Kolkata for credit card debt consolidation. Remember the key point is to get an interest rate that is much lesser compared to what your credit card companies are charging you.