These loans for a specified amount paid back over an agreed period of time and generally have lower interest rate than credit cards, therefore a fixed amount so you're not tempted to overspend and the Set and Date means that you're forced to pay it off in full,
However keep in mind that the inflexible applying for a personal loan takes time and you generally can't make extra repayment your loan off faster meaning you're stuck in debt until the loan term ends.
The alternative to personal loans can be p2p lending which are a personal loan but done through a different organization.
Credit cards is essentially a more flexible personal loans you can pay for items on a credit card whenever and repay what you owe at any time as well.
Many credit cards come with additional benefits like reward programs or complimentary travel insurance.
Of course if you don't repay your balance in full by the due date each month, then you will incur interest charges and that's where you run into trouble,
Because the interest rate on most credit cards is sky high off in more a double what you pay on a personal loan
Type Of personal Loans
Unsecured Personal Loans
An unsecured personal loan can be used for a variety of purposes, and a range of loan options and interest rates may be available depending on your circumstances. Unsecured personal loans are not guaranteed against any of your assets, but may represent better value than a revolving credit option. Unsecured personal loans generally have a lower ceiling of borrowing, though fixed and variable interest rates may be available.
Secured Personal Loans
A secured loan means your borrowing is guaranteed against an asset you own, usually your home. Due to this security being in place, by choosing a secured personal loan you may be able to borrow larger sums of money over longer periods of time, and also be able to access lower interest rates versus an unsecured loan.
Debt Consolidation Loans
A debt consolidation loan may be able to reduce your repayments, your interest rate, and help you to become debt free quicker. Debt consolidation loans are not always a useful solution, so before applying you should carefully consider your circumstances and make sure you’re not going to get yourself into further financial difficulty. When you take out a debt consolidation loan, the lender will usually pay off your existing creditors directly.
Contact Debts Consolidation Loan today to discuss your personal loan requirements and to begin your application.