While no one talks openly about it, most people's lifestyle is financed by debt. The difference between people is how they manage their debt and how they spend beyond their means. Due to the unstable economic conditions, many people have recently resorted to large credit card debt and seem to have no hope of repaying.
A Personal Loan Can Lift the Weight of Credit Card Debt: One option to get rid of such a nasty financial obligation is to take out a personal loan to pay off your entire credit card debt at once. If you are worried about "Should I take out a personal loan to pay off my credit card debt", let's take a deeper look at the pros and cons of doing so.
Personal Loan - Best Lenders of Sri Lanka
Lotus Loan to Rs.40 000
|Loan Amount||10000 - 40000 Rs.|
|Loan period||10 days to 122 days|
|Interest Rate||0.01 to 1% per day (max APR 12%)|
RoboCash to Rs.25 000
|Loan Amount||5000 - 25000 Rs.|
|Loan period||120 days to 180 days|
|Interest Rate||0.01 to 1% per day (max APR 180%)|
FastRupee to Rs.50 000
|Loan Amount||3000 - 50000 Rs.|
|Loan period||1 days to 180 days|
|Interest Rate||0.01 to 1% per day (max APR 365%)|
What is the loan term?
- Minimum loan term: 122 days
- Maximum loan term: 122 days for first loan
- Maximum loan term: 182 days for repeat loan
The loan is calculated as follows
- Loan amount: RS 30.000
- Loan period: 122 days
- Consulting fee: RS 3.600
- Service fee: RS 13.920
- Interest rate (12% / year) : RS 754
- Total payment: RS 48.274
Am I eligible for a loan?
- A citizen of Sri Lanka
- Residing in Sri Lanka
- Between the ages of 20 to 65 years old
- Currently employed or generating a steady income
Pay off your credit card debt with personal loan
One of the main reasons why people turn to online personal loans to pay off long-term debts such as credit card debt is to protect their overall credit score. The longer you delay repaying the loan, the worse your debt will be and it will affect you greatly in the long run, especially when taking out a large loan in the future, migrating to a foreign country or applying for a job. Getting a mortgage loan can be a daunting task. It is important to make it a point to pay off credit card debt on time, not only will you have bad credit scores, but you will also be charged a late payment fee and interest each day you are late in paying it off in full. The specified size of the cycle.
What is the difference between a personal loan and a credit card loan?
Instant cash loans. The biggest difference between an instant loan and a credit card loan is that when it comes to a quick loan, it is often a fixed amount that you agree to pay when you take a instant cash loan. But in a credit card loan, the interest is added when you make the minimum payment. These types of loans vary in duration and personal loans are high and credit cards are usually for a fixed period of time.
Personal loans are often taken out to pay off large needs, usually involving large sums of money, and personal loans are taken out to pay off in large quantities with longer repayment periods. Each installment is broken down monthly, and customers have the ability to restructure their loans as needed. They also have the ability to repay their loans, however, they are usually charged a small down payment.
Credit cards, on the other hand, have a credit limit that you can spend, giving you a credit limit when applying for a card based on your salary, employment and other income and conditions. This credit limit is the maximum amount you can spend on a given card. It is usually used when you need to invest money for short term needs. You usually have 21 to 51 days to pay off your credit card debt. Credit card interest rates are much higher than personal loans.
Also, unlike online personal loans, your credit card is designed to encourage you to use it more and spend more, often with cheaper credit card discounts and premium plans. So, it's easy to wait until your credit card debt is out of control.
How long do you need to get a personal loan?
When getting an instant personal loan, choose your repayment time very carefully. The longer your online personal loan repayment period, the more you will have to pay in interest and service charges. However, if in the long run it helps you to balance your finances and repay the full instant cash loan without much hassle, go for it as it will have a positive impact on your overall credit score which will bring you huge returns in the future. There should always be some research on what your monthly repayment or premium should be. This will help you understand how much money you should set aside for such premiums and how much money you have left over for other expenses.
When is it a bad idea to take out a quick loan to pay off credit card debt?
That said, do not opt for online personal loans unless you have a regular source of income. If you do so, even if instant cash loans free you from credit card debt, you will once again fall into personal debt, which will result in bigger loans and worse credit scores. As the saying goes, "Do not jump out of the frying pan." Instant personal loans are only useful for calibrating your credit score so that it does not damage your credit score and you can start a new plan repayment.
Once you have successfully settled your credit card with an online personal loan, be sure to exercise restraint and control over your spending habits. Debt relief is a free feeling and we at OnCredit are happy to facilitate it. So try Gost.Finance today and get rid of all your debt.
FAQ - Personal Loan