How to maximize your monthly budget
Unsecured debt can be one of the biggest monthly expenses that consumers have to pay each month. These debts, such as credit cards and personal loans, can take years to pay off, but if consumers are able to reduce their repayments and, ideally, write off the debt, it can free up some of their income. each month.
Credit card debt, for example, can be one of the easiest types of debt to take on, but only one is in debt, many borrowers struggle to pay off their outstanding balance. One way to help clear credit card debt is to transfer the debt to a 0% balance transfer credit card. For example, those who owe £ 5,000 on a credit card charging 19.9% APR making monthly repayments of £ 173 three years and three months to repay . If, however, that debt was transferred to a 0% balance transfer credit card and charged a fee of £ 125 to transfer the balance, they save £ 1,641.14 in interest. By meeting repayments of £ 173, the consumer could pay off this debt within 29 months on a 0% balance transfer credit card without paying additional interest. Consumers who are considering transferring their credit card debt can compare all 0% balance transfer cards on our 0% Balance Transfer Credit Card Card.
Alternatively, those who have unsecured debt with various lenders, such as multiple credit cards and personal loans, may consider consolidating their debt by using a personal loan to reduce monthly repayments. Interest rates on personal loans are competitive right now, with the lowest APR available on a £ 10,000 loan to be repaid over five years at just 2.80%. A personal loan at this interest rate for five years would require monthly repayments of £ 178.64. Borrowers considering consolidating their debts with a personal loan our personal loan table is a good place to compare all the loans and rates currently available.