Debt credit card debt can make the interest rate rise and could be at risk for bad credit records. For a solution, can we take a quick loan online to pay off your credit card? Check it out below!
Credit cards are like two sides of a coin. On the one hand, being used well and wisely can bring many benefits and benefits. But if it is misused, it can result in the accumulation of debt. This delinquent debt stack could prove to be a bad credit record and could result in blacklisting from various lending banks. In this case, when you apply for a loan later, it is not unusual to find that your application will be rejected.
This accumulated credit card debt can be due to many things, such as:
- Credit card has exceeded the loan limit
- Pay the minimum installment up to the old installment
- Payment late due to lack of funds
- Have a debt other than a credit card installment
- Use a credit card for consumer purposes
- Have more than one credit card
7 things to keep in mind before making a decision
Few people are taking a quick loan online to solve the credit card debt crisis. We often ask, is it possible to apply online for a quick loan to pay off your credit card debt? Before you get that answer, it’s a good idea to keep in mind the following five things:
1. Credit card debt status
First look at what the status of your credit card debt is. Is the status you can’t take anymore? Usually when credit card debt is in arrears, you can file a bankruptcy mediation with your bank. This is a common way to settle your credit card debt with your bank. Mediation of dispute resolution should be done by the bank or the Financial Services Authority. Settlement through this free banking mediation is free of charge. It can only be up to 60 business days since the mediation signature, and this can be done informally.
2. Check financial condition
If banking mediation is not possible, then you should first check your current financial situation. Whether your personal financial situation is minus or not. Why do you have to do this? By checking your financial situation, you can tell if there are any assets you can sell or not. If there are assets to sell, then you should sell them to pay off your credit card debt.
3. Tenor payment period
Take a look at the tenor of payment terms on online lending. Usually a fast online loan lasts about 10 days to 360 days (1 year). First calculate your ability to pay monthly installments so that you can determine how much tenor you can pay. Do not turn you into debt bondage again because he could not pay the mortgage loans fast online per month. If you do not have any assets to repay, then you can apply online quickly.
4. Learn the fast loan rates online
The interest rates of online loan products vary. Therefore, you need to be smart in comparing the interest rates and looking for the lowest. It would be nice if you could find an online fast loan installment that runs under your credit card interest. By taking a quick online loan under the interest of a credit card, you will be benefited as there is definitely a nominal difference you can keep.
5. Take note of other costs involved
Lastly is to consider what other costs will be incurred to you. Remember, it is not just tenor and interest that you need to pay attention to, but also other costs such as, administrative costs, provisional costs, early repayment fees, and so on. Also know the exact amount so you won’t be surprised when you receive the billing.
6. Read the terms and conditions carefully
Which of you often miss reading the terms and conditions that apply to online lending? This time, don’t miss it again! Read carefully what are the requirements of the document that you must fulfill in order to fully prepare. Whatever the conditions may be, from the filing, payment method, and so on.
7. Choose a trusted online fast lender
Fast loan online is very vulnerable to the risk of online fraud such thing. Therefore, you must choose a secure and trusted online fast lender. How do I know? You can see if the online lender is already registered with the OJK (Financial Services Authority). OJK is responsible for monitoring and monitoring online lending banking activities so that providers who are registered with OJK are safe.
You can apply for fast loans online with loans ranging from $ 1 million to $ 20 million. Maximum tenor period is 180 days (6 months). All you need to do is apply for a National Identity Card, National Identity Number, and have local bank accounts.
To do this is very easy, you can just download the app and then sign up for login . Once you have successfully logged in, you will enter your personal data and choose your desired loan amount and tenor. Once done, just wait for the submission to be processed. If the request is received, then within 1-14 business days, your loan funds will be transferred to the local bank account number you provided earlier. Isn’t it easy?
Tips for avoiding credit card debt
Applying for a fast online loan is not advisable if it is not in a very desperate situation and does not meet the requirements described above. Therefore, if you are able to pay off all your credit card debt payments, lender has some tips that you can do to keep your credit card debt out of the way. Let’s see what the tips are!
Limit your credit card limit to 30% of your earnings
We usually have a credit card limit equal to your total earnings per month. Let’s say you earn $ 10 a month. Then your credit card limit is also $ 10 million. This can cause you to lose credit card debt because not all of your money is spent on credit card right? So limit your credit card limit to at least 30% of your total monthly income. That way, you can always set aside the funds to pay off your monthly credit card installments and spend less on budget cards.
Have one personal credit card
Hey, which of you has more than one credit card? Having a credit card is enough for you why. Don’t be fooled by the fact that your friends have more than one credit card. Choose the credit card that suits you best and gives you the most benefits.
Never take minimum installments
We are often offered to take out minimum installments when making a credit card transaction. The minimum installment sounds a lot lighter to pay. But do you know that if it is downgraded, the overall interest of this minimum installment will be greater. The sooner the debt is paid, then the debt won’t cover you.
Hope the above explanation can be useful to you in deciding on the choice of Friend