Most Australians either have a credit card, a personal loan or both. If you have several accounts and loans to pay off, it can really be overwhelming. For some Aussies, carrying too much credit card debt and having loans becomes a dilemma, placing them in a stressful situation.
If you are torn between repaying your credit card debt and your personal loan, to improve your credit score, you are in the right place.
Personal loans are lump sums of money that are granted to you by the bank or your lender. This type of loan is unsecured loans and are paid back in regular payments, sometimes fixed or with varying interest rates.
Credit cards is a form of loan extended to you by the bank. You charge your purchases to your card up to the allotted maximum amount. Payments can be in full or in increments to cover for these charges. Not paying for your balance within a certain allotted period will cause your balance to incur charges.
Despite being different in so many ways, personal loans and credit cards is a form of debt.
Ideally, it would be best to clear your credit card debt and prioritize its repayment. Here are some of the top reasons why credit card debt should be on top of your lists compared to your other financial debts.
Repaying for your credit card debt and personal debts are obligations that you need to prioritize to maintain a good credit standing with your lenders. Even if you are aggressively paying for your credit card debt over your personal loans, you can still continue making minimum payments on all the debts that you owe. Not being able to do so will affect your credit score and your overall finances. If you have multiple credit cards, it would be ideal to have them consolidated into one so it would be easier to monitor them and would have to worry repaying a single interest rate, rather than several interest rates from the different credit cards that you own.
Are you looking into applying for a personal loan but is worried about your bad credit history? Intellichoice can help. Contact us today or check out this article Loans for People With Bad Credit: Bad Credit Mortgages and Financing to learn more.
By the end of this year, the country's housing sector is groomed for a promising…
While home loans rates and prices are starting to level down in most parts of…
Our 20-year experience with assisting clients with their owner builder loans needs enable us to…
With thousands of people out of work because of the pandemic, many are becoming interested…
Many observers say that the Single Parent Family Home Guarantee (SPFHG) is doomed to fail.…
Intellichoice Finance has been in the forefront in providing owner builder loans assistance to hundreds…
This website uses cookies.