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Can I Pay Personal Loan with A Credit Card

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Can I Pay Personal Loan with A Credit Card

Avoiding getting into debt often means making some hard choices. It is tempting, for example, to take out a personal loan to pay for a new kitchen in your home, or to buy a new car on credit.

But if you recognize that your financial health will be better if you avoid unnecessary debt, you must ask yourself if you really need these items. Could you make do, until you can afford to pay cash? Could you buy an eight-year-old car instead? Could you simply repair your current kitchen and brighten it up with paint? If you want to learn more about loan, kindly visit this dedicated website usa commerce daily.

 The slow slide into debt

Getting into serious debt is usually a gradual slide. It begins when you decide to buy something you cannot afford. Over time, you might be able to pay off one loan for one item. But if you made one decision to overspend, the chances are that this is part of your general attitude and you will make that decision again.

So the slide into debt is one characterized by steady acceleration. Not only are you likely to add to the sum borrowed by additional spending, but interest is charged at the same time.

The only way that spending more than you earn might turn out all right is if your income is set to increase substantially in the near future. Otherwise the problem will only get worse.Once you have started becoming too indebted, it is easier to ignore the situation than face it because of the hardship that will be necessary to remedy the situation. But obviously the longer you leave it, the worse it will get.

All too often, people do not start to tackle their debts until they have become unmanageable and the options are limited. But tackle them you must if you are ever to get back onto a secure financial footing.What your options are depend just how bad your debt problem is. The tips provided on this website small business loans direct might help you to get to the basic measures of success in the new business venture.

 Pay off debts with any savings you have

If you have debts as well as savings, this makes as little sense as actually going out and borrowing money in order to invest it. This is exactly how many people in the City make millions, but for the small investor, this high-risk strategy is unlikely to work.To understand why it is useless to have debts and savings at the same time, compare the rates (mentioned above) for credit card borrowing with those paid on some high-yielding investments. Top rates for cash ISAs are 5.75 per cent.

Once you’ve paid off costly credit and store card borrowing, you might be wise to remove temptation and cut up the cards.And if you do intend to keep using a credit card, switch to one which has a low interest rate. For example, a Visa card from Cahoot – the Internet bank owned by Abbey National-charges just 8 per cent in interest. Read terms and conditions of credit cards carefully, though, as they vary widely.

But what about major borrowings, such as your mortgage? Because mortgages are secured loans, the rate of interest you pay is normally quite low. So paying this off may not be as urgent as some car loans or personal loans. But you could still save interest by using lump sums to pay it off.

If you have equity in your home and are carrying around debts, it might make sense to remortgage and use the additional money borrowed to repay any high-interest debts. By shopping around, you may be able to lower your mortgage rate at the same time. It is a good idea to seek independent advice on remortgaging. Our website provides complete information regarding loans, visit this website win-prizes-money for further details.

Jacob Maslow is a Columnist at Disrupt Magazine. Based in the Middle East, he specializes in Journalism. He is the founder and editor of several news sites including Legal Scoops and Streetwise Journal.

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