How the best personal loans of the month could help you consolidate your debt
Personal debt consolidation loans can be a useful tool for those who may find it difficult to overcome pre-existing loans and credit card debt. And if that’s the case for you, you might be interested in knowing that you’re not alone.
Data released by the Reserve Bank of Australia earlier this month revealed that while Australians have written off $ 6.96 billion in debt that has accrued interest on their credit cards in the year since the coup COVID, the numbers are starting to level off.
This follows the release of monthly statistics on authorized deposit-taking institutions by the Australian Prudential Regulation Authority at the end of last month, which found that credit card loans had increased by $ 0.4 billion or 1 , 3% year-on-year in March.
Likewise, Citi’s research found that credit card spending for April 2021 was 35% higher than in April 2020 at the start of the pandemic.
While it can be tempting at times, paying only the minimum amount owed on your credit card each month could mean it will take you years to pay off all of the debt, as well as rack up ongoing interest charges. of road.
Also, if you have multiple credit cards or other forms of financing such as a car loan or personal loan, these are several sets of fees and interest rates to keep under control.
If you’re looking for ways to streamline your repayments and limit the doubling of ongoing charges and interest charges, one option that might be worth considering is a debt consolidation personal loan.
Consolidating all of your existing debt into a new personal loan could give you the opportunity to focus on paying off a single debt rather than trying to keep up with several. Personal loans also tend to have lower average interest rates than credit cards.
It’s important to keep in mind, however, that while a debt consolidation loan can be a useful tool that can help you manage your debts better, they will still amount to the same total once you get them. combined into one.
To help you get started with your personal loan comparison, RateCity has rounded up some of the top rated personal loans for May 2021.
RateCity’s Personal Loan Rankings ranks the top five personal loans using Real Time Ratings ™, a world’s leading rating system that ranks products as you use the site, keeping them up-to-date too. as possible.
(Rankings are correct at time of posting. Please note that lenders may swap places on the list as interest rates and fees change and RateCity’s tracker reflects those movements.)