Like many of us, sometimes you get in a tough place where you have to burn into your credit cards to stay afloat. With interest rates north of 15% that compounding interest can kill your budget and dig you into a whole you can’t get out of. Personal loans are a great way to get out of these.
Option 1: You can go to a bank, credit union, and get a loan at a fraction of the interest you’re currently paying.
Option 2: You can look for another credit card, yes I can hear the naysayer’s now you’re paying one card with another. However, if you have a credit card that can transfer your balance and pay lower interest for 2 or 3 years why wouldn’t you? Work the number and see if they make sense.
Option 3: Borrow from a retirement fund. I emphasize borrow, take a loan out from your retirement fund if you have one, 401k, IRA etc. These come with lower interest rates that YOU lend yourself. So you can pay back your loan at a 2 – 4 % interest to, you guessed it you. Check with your 401k/IRA adviser for all the details and work with your employer on a repayment plan. A few hundred out of your check every month would be easier than sending a larger chunk to a credit card company.