For many Pennsylvania consumers, credit cards help bridge the gaps between paychecks. Others find credit cards useful for making large purchases. Some people simply find it convenient to swipe a card without worrying about the remaining balance. However, credit card debt can quickly spiral out of control, and paying the balance off can end up feeling like an impossible task. Bankruptcy can be an effective option for many individuals in this situation, but personal loans could also help certain people.
Consumers who carry balances on multiple credit cards usually end up struggling to make their various minimum payments. Transferring the balances to either a single card or as few as possible can make it easier to tackle those minimum payments, but it is far from the most effective solution. Credit cards generally have high interest rates, which is one of the reasons they are so difficult to pay off.
Taking out a low-interest personal loan can be a more effective solution for some people. An individual can use the loan to pay off his or her credit card debt, and from there, he or she can repay the personal loan at what usually amounts to a lower monthly payment. Also, unlike with credit cards, a borrower cannot add to the balance of his or her personal loan. This combined with the lower, consistent repayment plan makes it much easier for the average person to handle.
Debt consolidation can be extremely helpful for some people in Pennsylvania, and personal loans are usually an effective tool for doing so. Still, this approach is not for everyone. When credit card debt reaches an unmanageable level, filing for either Chapter 7 or Chapter 13 bankruptcy can be a safer and more effective approach.