Consolidating credit card debt with a personal loan

19 Aug

For more information, check out: Rates and information current as at 14 December 2016 and subject to change.

NAB personal variable loan rate includes special discount off standard variable personal loan indicator rates which is available on new loans and for a limited time.

As this second table clearly shows, if the consumer fails to repay the fixed monthly repayments of 3 on the credit card and elects instead to pay only the minimum, he or she will take more than 17 years to repay the debt in full.

If you have an existing home loan, you could instead transfer your debt onto your mortgage, typically at a considerably lower interest rate than other debt consolidation options.

Currently on Canstar’s database, personal loan interest rates range from a low of 4.53% to a high of 19.49% for secured personal loans, and a minimum of 6.28% to a maximum of 22.99% for unsecured personal loans.

(See our 2016 Star Ratings Report for more information.) With fixed terms of somewhere between 2 to 7 years, borrowers are forced to repay the loan within the stipulated time period.

Two common ways to consolidate your debt are either via a personal loan or via a credit card balance transfer.

Balance transfers involve rolling your credit card debts onto a credit card with a low interest rate or a 0% interest rate that lasts for a certain timeframe, usually the first 6-12 months.Terms, conditions, fees, charges and lending criteria apply.Comparison rate calculated on unsecured loan amount of ,000 over a term of 5 years based on monthly repayments.WARNING: This comparison rate applies only to the example or examples given.Different amounts and terms will result in different comparison rates.