Consoldating debt

You can’t borrow your way out of debt in the same way you can’t get out of a hole by digging out the bottom.

A larger chunk of the extra you pay can be eaten up in interest charged, making it take longer to pay them out.

But there is another option to help ease this financial strain and get back on track with your finances.

The interest rate on one card may be significantly higher than the others – and if the highest rate is on the card with the $7,500 debt, you could be paying plenty each month just to cover the interest, let alone paying down the debt itself.

One option you have to consolidate your debts is to take out a single personal loan to pay off each credit card and any outstanding interest.

Since the interest rate on a personal loan is often considerably lower than on a credit card, and the repayment term potentially much longer, the consolidated payment may be much lower, as you indicated.

If you are struggling to keep up with your monthly payments, consolidating your debt in this way can certainly help alleviate financial stress.They also probably haven’t saved for all of the “unexpected events,” which will eventually become debt too.In other words, the good money habits for staying out of debt and building wealth aren’t there—their behavior hasn’t changed—so it’s extremely likely they will go right back into debt.With the cost of living continually increasing, some mortgage holders may find it difficult to managing their finances and as a result, can become overwhelmed with financial commitments.According to au, the combined personal loan and credit card debt of Australia is at the highest level in almost four years."It's daunting to see that Australians are taking out personal loans and using their plastic to fund unsustainable lifestyles.

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