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Discard Your Credit Cards

Updated: 9/16/2019
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13y ago

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Individuals who find themselves writing several checks each month to pay credit card bills might consider obtaining personal loans for debt consolidation. When accounts carry extremely high interest rates, rolling all of the balances into one loan can help lower interest and save hundreds to thousands of dollars, depending on the amounts owed. One payment for a personal consolidation loan will usually be less than the total of all payments made on several accounts. This means that a personal consolidation loan can put more cash in a debtor's pocket and save money in the long run.

When a person has decent credit, getting a personal consolidation loan at a good interest rate is possible. However if one's credit is questionable, he or she might have to settle for a loan at a higher rate, but this rate will usually be better than the rates on high interest card accounts. The best way to get a good rate is to shop around. However, if an individual has a good relationship with a bank already, getting a good rate might not be difficult.

Those who get personal loans for debt consolidation should remember that when credit cards have no balances, it is tempting to start charging purchases again. To avoid getting back into debt, cut the credit cards into pieces and discard.

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