Should You Get a Personal Loan to Pay Off High Interest Rate Credit Cards?

Many New Zealanders have racked up credit card debt on their MasterCard, Visa, American Express or Diner’s club credit cards. Unfortunately, credit cards can have interest rates as high as 22% p.a. or more. When compounding interest over several years, card holders could pay more in interest than the items they purchased.

Whether you used a credit card to buy appliances for your home, for car repairs or to cover medical costs, finances can easily spiral out of control if you do not monitor the monthly payments. Even if you have made your payments for several years without missing a payment, you could still see huge amounts of debt build up if you are making the minimum payments.

In the United States, banks and lending companies are forced to show credit card holders just how long it will take to pay off the credit card if they make the minimum payment. This can be shocking to those that are not aware of compounding interest. What you thought could be paid off in less than a year might end up taking several years or possibly even a decade to pay off due to the high interest rate on the card.

For this reason, it might be a very wise decision to consider a personal loan for debt consolidation. By reducing the interest rate on the money borrowed, you will pay much less over the course of the loan term. By using a financial calculator, you can crunch the numbers and see how much money you will save by taking out a personal loan with Nectar today.* You can also contact us to get more information on how much can be saved by consolidating credit card bills.

Our goal is to help you live a better financial life. There is no reason to pay continual interest on credit card bills that will take years to pay off. If you are paying the minimum payment, you may be simply paying back interest for several months, without reducing the loan principal.

Use some of the valuable tools we offer at Nectar to determine how much you can save with a personal loan. You will find that a debt consolidation personal loan will not only help you save money, but it may also allow you to get out of debt quicker.*

*Nectar’s lending criteria and responsible lending checks apply.