Personal Finance In India

If you use your credit card for paying your household expenditures then debt can go out of your hand. So, is it a right choice to get the personal loan for making payment of your credit card bill? Below, are some vital points which you should considered before using a personal loan for paying credit card bills-

• Generally, credit card debts have high interest rate in comparison to personal loan. Therefore, if you are keen to save some amount then you can choose personal loan. However, you should note that you would be needed a high credit score in order to get the low interest rate on loan.

• You should shop around and make a proper comparison of available loan options. The interest rate of Canara Bank personal loan is different than interest rate of Corporation Bank personal loan. Also, terms and conditions are also different. You should make a proper comparison among loan options before making the final decision.

• You should ensure that you are taking personal loan only when you are capable that you can afford its monthly payments. You will be repaying the loan amount soon after you get the loan therefore, you should make sure that you have sufficient funds to make payment of your all bills.

• At last, you should make a proper review of your spending habit and make every attempt to lower your unnecessary expenditures if you are not in the mood to face the debt situation in the future.