It is very easy in this day and age to take out a credit card and spend more than we can afford to repay. Of course, one could argue that that’s what lenders want us to do, however even the most careful borrower can fall in to the trap of spending too much money on a credit card.
If you have spent too much money on your credit card and are finding it hard to repay the amount owed, you could consider debt consolidation, or more specifically a debt consolidation loan, as a means to an end.
A debt consolidation loan will combine any of your existing debt in to one debt. This will make repayments on your debt easier.
As well as making your repayments easier, here are 3 reasons to choose a debt consolidation loan to clear your credit card debt.
1. Get rid of all your credit card bills
If you are in debt on your credit card every single month you will be sent bills by your lender. If you are heavily in debt, these bills may include aggressive letters asking you to contact them immediately.
By taking out a debt consolidation loan to clear your credit card debt, you will be able to cut these out and deal directly with your consolidation provider. This will reduce your own time expenditure and allow you to be more efficient.
2. Reduce stress and financial burden
There is much publicity in the media about borrowing scandals and those who choose to not pay back debt, and it makes these borrowers look like they enjoy it, but we know the reality is very different!
Being in debt is an incredibly stressful time and when letters and bills come through the door surrounding debt, there can feel like there is no way out. Following on from point 1 above, a consolidation loan will reduce your stress of having to repay multiple lenders.
3. Lower your interest rate
Consolidation loans by their very nature are appealing because they offer to potentially give you a lower interest rate on your debt versus your loan or credit card. In many cases, this is actually true, and so consolidation loans may over time allow you to reduce the total amount paid versus paying off your credit card debt directly to the lender.
Of course, you will still have to repay the full amount initially borrowed.