Can I use a personal loan to pay off
my credit card?
If you’re finding it hard to keep up with credit card repayments, you’re not alone. One option some people consider is using a personal loan to consolidate their outgoings into a single repayment. This article explains how that might work and what to think about before making a decision.
Why some people consider it
Here are a few reasons people explore this option:
- Simplified repayments: One regular repayment instead of managing multiple credit card bills
- Fixed term: Personal loans usually have a set end date, which can help with budgeting
- Potential cost savings: Depending on the interest rate and fees, a personal loan may cost less over time than ongoing credit card interest
What is debt consolidation
Things to consider
Before applying for a personal loan to pay off credit card debt, it’s important to think about:
Interest rates and fees
Loan term
Discipline
Credit score
You should carefully consider these factors in order for you to determine whether a personal loan is right for you.
How Pepper Money may be able to help
At Pepper Money, we offer personal loans for a range of real-life needs, including debt consolidation. We look at more than just your credit score and consider your full financial story.
To learn more, visit our personal loans page or speak with a lending specialist on 137 377.
Contributor | Vasè Marcevska, Head of Direct Sales – Mortgages and Personal Loans
Vasè has over 16 years of experience in the Banking and Finance sector, specifically within the Third Party and Consumer lending industry. Her expertise now focuses on enhancing our Customer program through a deep understanding of mortgage origination and service excellence across our Financial products.
Read more.
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