Can You Use a Personal Loan to Pay Off Debt?

With debt, it’s easy to feel stuck. If you’re having to juggle multiple deadlines each month or battle against high interest rates, you may feel overwhelmed or exhausted. Thankfully, personal loans are an option to pay off debt! These loans can be used for a variety of personal expenses, and they can save you a lot of time and effort when applied to debt.

Why Use a Personal Loan to Pay Down Debt?

It may seem counterintuitive to take out a loan for the sake of paying down debt. However, doing so could make the process of paying off your balance much faster and easier. Some of the benefits of using a personal loan for debt include:

• Streamlined payment process. If your debt is spread out across multiple lenders, then you know how challenging it can be to stay on top of everything. A personal loan can help streamline the payment process by making it so you only have one lender to pay and one deadline to keep track of.
• Lower interest rates. Some lenders have extremely high interest rates, which can cause your balance to snowball quickly. A personal loan may offer you a lower interest rate and save you a lot of money over time.
• Fewer monthly payments. It can be confusing and exhausting to manage multiple due dates and make several payments throughout the month. A personal loan makes it so you only have one due date to focus on.
• Setting a final payoff date for debt. Debt is often open-ended without a specific end date, which can make it linger for years. Meanwhile, most personal loans have a fixed repayment period, meaning you will have a specific date for your final payment.

Personal loans can be an excellent tool for saving money and reducing stress associated with debt. And, best yet, members of People’s Community Credit Union all get the same great rate on personal loans! If you want to consolidate your debt using a personal loan, our knowledgeable employees are ready to help you get started. With five convenient branches throughout Vancouver WA, we can walk you through the process of taking out a personal loan. Contact us today to learn more or apply for a loan online!