How Do I Consolidate My Debt With A Low Interest Personal Loan?
December 21, 2017
The holidays can be an expensive and hectic time of the year. Getting into credit card debt during this time is all too easy; with the swipe of a card, your holiday shopping is complete! But not so fast.
According to the latest figures from Equifax Canada – household debt in Canada has skyrocketed to $1.8 trillion – which includes $90 billion in credit card debt. If you’ve done a little too much spending leading up to the holidays, it might be useful to think about taking a low interest personal loan to pay off your high interest debt in the new year.
In addition to providing your free credit score, we also provide unsecured personal loans to Canadians with good credit. When used responsibly, a Borrowell loan can be a great way to improve your overall financial well-being.
Here are the top three reasons to consolidate your credit card debt with a low interest personal loan, so you can take charge of your finances in 2018!
1. Save $$$ on interest
The typical credit card has an interest rate of 19.99%. If you get behind on payments, it’s easy to get caught up in compounding interest – meaning, you’re essentially paying interest on your interest! Also, late payments can lead the issuer to increase your interest rate to as much as 29.99%.
As of 2017, the average Canadian is now more than $22,000 in debt and that number is increasing. If you have a great credit score of 660 or above, you could qualify for a Borrowell low interest personal loan to pay off your credit cards and save on interest.
2. Get out of debt faster
When you’re only making the minimum payments on your credit card balance, then you have no way of knowing when you’ll be debt-free. Because of compounding interest, keeping a balance on your credit card will just get you deeper in debt.
Let’s say you currently have a $10,000 balance on your credit card with an interest rate of 19.99%. If you make payments of $250 each month, it would take you 5 years and 7 months to pay off your debt and you’d end up paying $6,547 in interest.1
Now compare this with a Borrowell loan that has an interest rate of 10.5%. You could become debt-free in just three years and pay only $1,734.93 in interest. This means you’re saving an estimated $4,812 by choosing a Borrowell loan.2
Borrowing from Borrowell is a smarter way to manage debt and can help you get out of it sooner.
3. Improve your overall financial well-being in 2018!
Consolidating your credit card debt with a Borrowell loan can give you peace of mind.
Borrowell is a wholly online application, so you won’t ever need to set foot in a bank. If we’re being totally honest, you wouldn’t even have to leave your bed.
You can instantly check your rate and get a quote without affecting your credit score, which you’ll also get in the process. Become one of the thousands of Canadians that have borrowed from Borrowell to get out of debt and improve their financial well-being.
Make 2018 the year you take control of your finances. Wishing you a safe and happy 2018 from us at Borrowell!
Are you interested in a low interest personal loan from Borrowell? Check your rate here – this won’t affect your credit score!
1Based on credit card APR of 19.99% and credit card debt repayment of $250 per month.
2Please note that final approval of your application for a Borrowell loan is conditional on completion of the steps set out in your application (including identity, income, and bank account verification) as well any further underwriting review deemed necessary. Additional documents may be required. Borrowell retains the right to adjust any loan options presented to you or to decline your application at any time prior to final approval.