Personal Loans to Pay Off Credit Card Bills – Yay or Nay?

All of us today are aware of how easy it is to use credit cards as a means for payments and purchases as well as the sheer convenience it offers us in terms of repayments. However, we also cannot deny that credit card debt can be very frightening, and pretty difficult to get out of if we do not make our credit card payments on time. Sure, credit cards do come with ‘interest-free’ days, but that only means that you won’t have to pay interest on any new purchase during this period provided the closing balance amount is paid by the due date (which is given on your statement).

That’s right. It means that you need not spend your own money to make a new purchase, and you also will have a time-period (normally 40-50 days, based on your bank and card) within which you will have to clear all payments. If you don’t do so, that’s where the trouble starts. You will be charged excessive rates of interest (sometimes upwards of even 30%), and before you know it, you will have accumulated credit card debt, which, trust me, is very hard to pay off.

In this case, what do you do in case you’re stuck with outstanding credit card bills and want to pay it off, or at least have a streamlined way to do it? Don’t worry, we’ve got you covered. We’re going to be exploring one of the ways in which you can pay off your credit card bills – by taking a Personal Loan. Not only that but we’ll also tell you whether clearing your credit card by means of a Personal Loan is advisable or not.

First, let’s understand what a Personal Loan is. A Personal Loan is an unsecured loan that is provided to working salaried professionals for their personal use, without asking for any security or collateral. This is its best feature, and what makes it an extremely convenient option for availing short-term funds for urgent expenses, such as paying off your credit card bills before they get too high.

So here are the advantages of paying off your credit card debt through a personal loan.

Advantages of paying off your credit card debt through a personal loan

Lower Interest:

Even though Personal Loans are offered to you based on various factors like your repayment capacity, and payment history, the fact remains that they offer significantly lower rates of interest. This is better instead of paying high interest on several credit cards.

One Single Payment:

It’s very difficult to keep track of multiple credit card payments because each of them comes with different due dates, balances, and payment schedules. When you convert all of these into a single Personal Loan payment, life becomes much easier.

Faster Loan Closure:

Having a Personal Loan means that there is a fixed interest rate, fixed EMI amount to be paid off every month, and a fixed repayment period. You know when your loan is going to be closed, and that way, the payment is more efficient and thus gets closed faster.

However, in spite of these advantages, it’s always better to read all the terms and conditions of your Personal Loan before choosing to go ahead and use it to pay off your credit card debt. If you’re looking to get an Instant Personal Loan in a hassle-free manner, you can also head over to KreditBee. It offers Personal Loans in the form of a Salary Advance for young professionals, starting from ₹1,000 up to ₹ 3 Lakh and it’s an option worth considering if you’re in urgent need of short-term funds to meet your expenses.