Benefit using a personal loan to pay down high-interest debt: Here’s why

Benefit using a personal loan to pay down high-interest debt: Here’s why

Dubai: Although owing money is not always bad, it turns bad when you owe money you cannot pay back. And if the amount of money you cannot repay keeps snowballing, you need a plan. “Borrowers deep in debt use many strategies to get out of debt,” Dubai-based debt advisor Mirin Raul said, while adding that one of which involves applying for ‘balance transfer’ cards. “Some people use balance transfer cards to successfully pay down debt, but others simply make the minimum payments and never make real progress against their debts,” added Raul. “Those usually end up exactly where they started once their card's introductory offer ends — with plenty of debt and a crushingly exorbitant interest rate. However, there may be a better, more predictable way out of debt, however, and it involves a personal loan.” Applying for a new loan to work your way out of debt may go against common logic, but there are reasons a personal loan can work. For starters, these loans come with low fixed interest rates that never change. Second, they have repayment schedules that tell you exactly when you'll become debt-free. Because personal loans have fixed rates and fixed repayment terms, you also