More than 40% of Americans today carry credit card debt. According to the US Census Bureau and the Federal Reserve, the average person has a credit card debt balance of $6,354. Even worse: the average credit card interest rate hit a record 16.71% APR this year. So if you had that $6,354 balance, you’d pay an extra $91 in interest per month.
If you can only afford the minimum payments, it could take a decade or more to pay that balance off.
But it’s not just credit cards, any higher interest debt has the potential to trap you under years of payments—medical bills, student loans, auto loans, or one-off financing loans (like if your HVAC breaks and the repair service offers you financing on the spot).
With expectations of the Federal Reserve to continue raising rates (already twice this year), variable interest rates on existing debts, such as credit card debt, could inflate. That means higher monthly payments making it even harder for some Americans to get out of debt.
So what options remain if credit cards are out? Consider a personal loan.
Personal loans can be taken out over a wide range of terms – as short as 6 months or even up to 15 years. By far the most common are 3 or 5-year terms. This gives borrowers the opportunity to find one source for financing that fits their budget, instead of applying for multiple credit cards. You can additionally check your approval likelihood for a specific loan amount before you actually apply. Personal loans come with fixed-rates, often lower APRs than variable credit card rates, so you’re not at risk to rising payments.
Personal loans can be used for basically the same types of transactions you would use a credit card for – a large purchase, home renovation project, a wedding.
You can also use them for debt consolidation or balance transfers! If you have existing high interest debt, you should definitely consider refinancing or consolidating to a lower fixed-rate personal loan. You could save thousands.
With lower interest rates compared to credit cards, fixed APRs, a quick approval process, and near universal uses, personal loans are a great, flexible financing or refinancing solution.
Before you pull out a credit card for that big expenditure consider a personal loan. Or if you’re already stuck with multiple lines of debt and high interest credit cards, definitely at least see if you’re approved for a personal. You’d be amazed how much it could lower your payments and get you out of debt faster.
Fill out a simple online form and in just a few minutes you could be matched with up to 5 personal loan offers from lenders (depending on your credit). It’s free, there’s no impact to your credit score (soft check only), and you get real, personalized offers to filter, sort and compare.
Plus, it saves time on having to hunt down and apply with lenders one-by-one to see if you’re approved.
The LendingTree network includes banks and lenders, many of whom you may already know and trust – that competition drives down rate offers. You could also find smaller online or local lenders that can be just as competitive as the big guys!
LendingTree uses a proprietary system to match you with up to the 5 lenders that have the best chance of approving you and at your lowest rates. There are no payday lenders or loan sharks on the LendingTree network, which means no outrageous payday lender rates.
So use LendingTree to compare personal loans. You could find APRs as low as 3.49%.
You could have your personal loan funds in your account within 24 hours after approval, and you may be able to borrow up to $50,000.
Ready to ditch high-interest?