Ways Personal Loans Can Make Paying Off Holiday Debt Simpler.
Are holiday expenses making you anxious? It can be one of the most expensive times of the year, which can lead to high-interest debt. According to a study by American Express, 86% of millennials overspent on holiday gifts last year. If you can get creative with your shopping list, stick to a budget, and afford to cover holiday purchases without borrowing, you can avoid overspending and taking on too much debt.
Unfortunately, many people don’t earn enough to build a savings and cover all their holiday expenses with cash. If this describes you, you could consider borrowing a little money to enjoy the holidays and avoid disappointing loved ones. If you do find yourself in need of funds for the holidays, you could take out a personal loan. Here are some of the ways paying off holiday debt is easier with a personal loan.
You will know how long you have to pay off debt.
Paying off holiday debt can be a lot easier when you have a due date. When you use credit cards, you’re only required to make low minimum payments each billing cycle. When you only make minimum payments, your money is going towards paying down interest instead of your balance. With credit cards, your debt is allowed to roll over as long as you make minimum payments, which makes it easy to accumulate debt and allow it to balloon.
You will know your total cost.
When you use a credit card to make holiday purchases, you won’t know exactly how much you will end up paying for those items. If you pay off your credit card before the end of your billing cycle, you can avoid earning interest. However, many borrowers allow at least some of their balance to roll over, which means you will be charged interest on what you spent.
Paying off holiday debt is easier with a personal loan because you will have a set repayment schedule and know how much you have to pay each month over the course of your loan. Borrowers must assess total costs before they sign a loan agreement to make sure the total cost of the loan is worth it and affordable.
You might be able to secure a better interest rate.
Some personal loans have lower interest rates compared to credit cards. A lower interest rate means you will pay less overall for the money you borrow. If you have a poor credit score or no credit history, you might think you only qualify for high-interest credit cards or predatory payday loans. Uprova provides funding to a wide range of borrowers with different credit backgrounds. You could benefit from a payday loan alternative loan from Uprova.com.
You could use a personal loan to consolidate holiday debt.
If you used multiple credit cards or took out loans to cover holiday expenses, you might be overwhelmed. Consolidating your holiday debt can make it easier to manage and pay off faster. You might also be able to secure a better interest rate. You can use a personal loan to consolidate your high-interest credit card debt and make paying off holiday debt easier.
The holidays are expensive, and overspending can cause anxiety. Personal loans can make paying off holiday debt easier. You will know exactly how much borrowing will cost you, what your payments will be each month, and might be able to secure a lower interest rate. You could also use a personal loan to consolidate your holiday debts and make them simpler to pay off.
If you need a personal loan to cover holiday debts or expenses, Uprova.com can help. You can request between $300 and $5,000 online today.