If you’re facing burdensome credit card debt you're not alone. The average American household owes a whopping $18,000 in credit cards. But what you may not realize is that if you only pay the minimum on $18,000, you’ll owe an extra $11,000 within a year. In other words, by paying the minimum you’re digging yourself further into debt.
Nicky is trying to figure her debt
How is this possible?
Since 2010, banks and credit card companies have slowly but surely inched up credit card interest rates - which is a huge payoff for the big banks and credit card companies.
In 2018, banks earned more than $100 billion in credit card interest and fees alone – which is 15% more than they earned in 2010 when the industry was still reeling from the 2008-09 financial crisis.
“Nobody had a credit card when I was a kid. No one had credit card debt.“
Pay off credit cards faster, for less
The good news is that despite the banks being dead set on making more money off of your credit card debt, you have a much better option. You can use a personal loan to consolidate high-interest credit card debt, and, if done correctly, can help you obtain a lower interest rate and pay off your debt faster.
The process is simple and entirely online. Even if you have a low credit score or an untraditional income source,there are lenders who will work with you to secure the loan that you need.
Leslie’s journey to financial freedom
Leslie, 37, from North Carolina, told us how taking out a personal loan set her on the path to financial freedom. $18,000 in debt, paying off high interest rates from 3 different cards, Leslie was digging herself deeper into debt every month and struggling to make her payments.
Leslie Jones, outside her fully paid house
“Credit cards have low minimum monthly payments but a high interest rate. The low payment is because they want to continue charging you interest. I realized that it was in their interest if I only paid the minimum payment on my cards. They were making a fortune off of my credit cards on purchases I had already paid for”, Leslie explained.
She added, “Personal loans have set terms and lower rates. Once’ve you’ve paid off your loan, you’re done. There’s no risk that you’ll end up in a never ending cycle of debt.Which is exactly what credit card companies want”.
Leslie found a personal loan on LendingTree and saved over $1500 a year just by taking a personal loan to cover her credit cards debts. Within three years she got rid of her credit card debt completely.
How to find your loan:
There are numerous companies and online marketplaces offering personal loans with a wide variety of terms and rates. It can be exhausting checking them all to make sure you’re finding the best rates.
So we’ve done the work for you.
Based on our research, LendingTree is your ultimate one-stop-shop for finding loans with the best terms and lowest rates. LendingTree has helped millions of Americans pay of their credit cards with personal loans.
LendingTree doesn’t charge any fees to connect you with hundreds of lenders and it has a single prequalification application to expedite your loan approval process.
This means that the entire process on LendingTree is online and you can be qualified for a loan within 24 hours.
LendingTree also puts you in a position of power. Multiple lenders will be competing for your business. You’ll get the best options and you’ll choose which one works best for you.