Minimum Payments vs. Unsecured Loan Installments


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Minimum Payments vs. Unsecured Loan Installments

  1. 1. ==== ====Are You Struggling To Make Your Monthly Payments? Go Here To See How You Can LowerYour Payments Up To 60% ! ====When you have financial problems, credit cards instead of being a blessing turn out to be anincredibly heavy burden. Financing unpaid balances is extremely expensive and your minimumpayments keep increasing eating up your income till you finally wont be able to meet thepayments.Credit Cards PaymentsThough the flexibility credit cards provide is undoubtedly useful in normal situations, you can easilyfeel tempted to reduce the amount of money you destine to pay your credit card balances and useit for other expenses. Since credit cards let you pay only a small portion of the balance, thetemptation is big but doing so can bring many problems to your financial health.The interest rate charged for credit card financing can be as high as 25% on an annual basis.Such a high rate, if the balances remain unpaid, implies high amounts of money on interests thatkeep being added to your debt. If you pay only the minimum this situation is aggravated becauseeventually as your debt increases, you wont be able to pay the minimum and when that happens,youll incur in penalty fees that will increase your debt even more. Moreover, due to thedelinquency, the credit card company will increase the interest rate charged and you will enter intoa vicious circle of debt.Unsecured Personal Loans InstallmentsA solution to this problem is to obtain an unsecured personal loan in order to cancel the credit cardbalances in full. Unsecured Personal Loans Installments have many advantages over regularcredit card payments that turn them into an excellent option if you wish to take control over yourdebt and start repairing your credit.For starters, the interest rate charged for unsecured personal loans is significantly lower than theinterest rate charged for financing unpaid credit cards balances. While unsecured loans carryinterest rates that range from 7% to 16%, Credit Cards rates can reach up to 25% and are almostnever lower than 14%Moreover, while the minimum payments on credit cards are variable and include little principal, theunsecured personal loans monthly payments can carry fixed rates and thus be equal throughoutthe whole life of the loan. Besides, the monthly installments include interests and principal as wellso youll be continuously reducing your debt by repaying the loan.If you are smart enough to get rid of most of your credit cards but one or two after you repay the
  2. 2. balances and refrain yourself from using them for unnecessary expenses, then your unsecuredloan installments will also contribute to stopping the vicious circle of debt and start a virtuous circleof debt elimination. That way, youll be able to gain control over your finances again.Sarah Dinkins is an Expert Loan Consultant in the financial industry who helps people to repairtheir credit situation and get approved for home loans, unsecured personal loans, student loans,consolidation loans, car loans and other types of loans and financial products. In her website she writes useful articles for people looking forprofessional advice in the finance field.Article Source: ====Are You Struggling To Make Your Monthly Payments? Go Here To See How You Can LowerYour Payments Up To 60% ! ====