It is very common for people to get into debt with credit cards, perhaps due to improper use of them. However, you may be thinking that the debt of your card …
It is very common for people to get into debt with credit cards, perhaps due to improper use of them.
However, you may be thinking that the debt of your card or your cards are “eternizing”.
If you have chosen a very low amount to pay, you may be unnecessarily lengthening the return period of your card.
Having credit card debts can be eternal and we can make the payment very long.
How can we shorten that period and pay less interest?
By extending this term, you are paying a very large amount of interest, and extending your debt more and more with credit cards.
In the event that you do not use them anymore, it would take a long time to pay them.
It is true that today you can enjoy many advantages with new credit cards online but a proper use can bring us problems.
Credit card debt is something serious.
Let’s not talk then about the case in which you did dedicate yourself to continue using the card.
In that case, you would have a much more serious problem. You should not feel very bad if it has happened to you since it is very frequent.
How to deal with the debts of the card?
We are very clear that the objective we have is to pay less.
But maybe we have confused terms. Paying less money means paying less interest.
If we have thought that paying less is paying less in our quota, we have a serious problem.
Credit cards offer us to finance our purchases, in exchange for the payment of some interest. This is very comfortable
But it can be a trap if we do not pay enough each month to ” take away the debt .”
Paying the minimum with the card will only be paying interest.
That way, the debt will not go down or it will do so every month, and we may be talking about a € 50 installment in which we only remove 5 or 10 of our debt. Crazy.
Should I ask for a loan to pay off the credit card?
Although credit cards are very comfortable, sometimes they can be eternalized.
Therefore, if we have entered a loop with them or have several, it is convenient that we consider other options.
Applying for a payday loan consolidation to pay off multiple payday loans can be a good option.
Sure, we should do numbers.
But if the APR of our card is higher than 20% (something very common), it will be very easy to find a loan that is profitable.
If we apply for a loan to pay for our credit card there are several issues that we must consider.
It is not about asking for a loan like crazy. We must look at what will be more profitable really for us.
Let’s talk about absolute amounts
Whenever we compare the payment we are going to make from the credit card with the loan, we must look at the absolute amounts.
Not in installments. In this way, we will know what will be more economical.
If we have credit card debts of € 2,000, and with interest, we will end up paying almost € 4,000, a loan that offers € 2,000 to pay the card debt and costs us less than € 4,000 will be profitable.
Therefore, we must see the absolute amounts to be able to compare the payment of the loan with the payment of the card.
In many cases, the operation of paying the card with a loan will be profitable.
The highest possible quota
Whether it is the loan or whether it is the card, we must bear in mind that the lower the fee, the more interest we will pay.
The longer the debt, the more we will have to pay at the end.
Therefore, we must establish an amount that is high enough to be profitable, and low enough so that we can pay it comfortably.
The choice of the quota is ours, but we must do it well.
Do not think that paying less each month will save us money because it will only be an illusion.
This is only valid in the credits at 0% APR.
In order to choose a loan that is really profitable, we must compare different loans.
CREDIT CARD COMPARATOR
With this comparator, you can see the characteristics of each of the loans and decide which is the one that best suits your needs.
All this on one page. And, once you have decided, you can send your application without leaving your home.
Eliminating our credit card debts will be very advantageous for our personal economy, it will give us economic stability and we will also be able to maintain a clean credit history.
PRACTICAL EXAMPLE DEBTS OF CREDIT CARDS
We are a group of financial professionals who try to help the user to obtain transparent and safe products to cover their credit needs. Our work is to help and inform about the conditions and characteristics of the credits and loans of the Spanish market with the intention of protecting the consumer.