To avoid bankruptcy, foreclosure, and repossession, many who are engulfed in credit card debt will desperately search for options to alleviate their overwhelming and worrisome financial burden. From taking on a second job to selling plasma, there are few limits to what someone will do to pay the bills when the pressure from collectors heats up. That’s why many debt-entrenched borrowers consider risky options such as taking out a personal loan to pay off their credit cards. While taking on more debt to pay off current debt may seem like a drastic measure, there may be a few benefits that could benefit you in managing your debt.

What Is a Personal Loan?

Also known as an unsecured loan or a signature loan, a personal loan is a loan that you may qualify for based on your previous credit debt and current income; however, most lenders approve personal loans after evaluating your credit score. 

The Benefits of Personal Loans

in terms of favorable rates and monthly payments, taking a personal loan to pay off your credit card can be beneficial since personal loans have lower interest rates compared to credit cards. With the financial support of a personal loan, you can begin to gradually pay off your debt and restore control over your finances. As long as you pay back your personal loan on time, utilizing a personal loan to restructure credit card debt can be additionally advantageous in the following ways:

· No collateral – Because there is no home or automobile to repossess in the event of missed payments, personal loans do not involve any collateral. 

· Computerized interests – Some personal loans can calculate your interest based on what you currently owe — allowing you to choose a loan with a lower interest amount in order to accommodate your income flow.

· Set standards – Personal loans have set standard amounts that are flexible for the repayment process and give you the ability to plan and be well informed over the payment period.

Drawbacks of Personal Loans 

A personal loan is a debt, so if you already having difficulty repaying your existing loans, then taking out a personal loan might not be the best option for you. It also may not be a good idea to pay off credit card debt with a personal loan if:

· You lack a solid repayment plan 

· Your personal loan is not saving you money by lowering your interest rate and monthly payment 

· Your personal loan does not sufficiently pad your bank account while you chip your debt away. 

· Your personal loan lender charges a loan fee which makes the personal loan application process more expensive and thus the process of credit card repayment via personal loan more costly.

How to Salvage Your Finances without a Personal Loan

Paying down one debt with another could be helpful for a short time, but it will not solve your financial problems. To get out of debt and really make a change in your financial life, you should evaluate what    

factors contributed to your original debt in the first place before committing to taking out a personal loan to pay your credit card debt. It also helps if you:

· Limit any excessive spending

· Reduce your monthly expenses

· Nurture your credit score back to health by paying your bills on time

· Consult with professional credit counseling services

Expert Credit Card Debt Negotiators

With established relationships with all the major creditors, Progressive Debt Relief has experience settling credit card debt efficiently and discreetly. Through free consultations and no upfront fees, our financial experts will work with your creditors to negotiate and settle your payday loan debt for good. To find out more about our services, or to schedule a complimentary consultation, contact us today.