Personal loan brokers and advisers in Rockingham are privy to a lot of financial information. We need to take basic information to find the right loan for clients. In addition, a lot of them tell us about the factors that affect their finances the most. One place where consumers often run into trouble is with credit card transfers.
The Pitfalls of Credit Card Transfers
A credit card transfer can be a seamless transition for a lot of borrowers but only if everything works out perfectly for them. The idea is to transfer all of your high credit card balances to a credit card with a lower rate.
Many borrowers are enticed with the promise of zero interest rate, only to find out that they “don’t qualify” for that rate and have to pay a rate that is only slightly lower than their other credit cards are. Sometimes they do qualify but the offer is an introductory rate that expires after a year. Unfortunately, once the introductory rate has expired, consumers find themselves paying almost as much as they were on their old credit cards.
If you are late on a few payments, you may find that your rate has jumped to as high as it was before you borrowed. You should always check the terms carefully before taking out a new credit card or loan.
Another problem: it is a credit card and it is easy to use for more purchases, putting yourself further in debt and beginning a cycle of never paying off the old debt.
Is a Personal Loan the Better Choice?
We have helped a lot of people solve their problems with personal loans. The process is like a home loan or an automobile loan. However, interest rates are lower than those on credit cards. The lower the interest rate, the more money is applied to your principal every month. This means that you can pay off the loan faster while still paying the same amount you would pay to a credit card company.
Call (08) 9527 1800 today.