Being saddled with a mountain of credit card debt is quite common for many Connecticut residents and others across the country. Consumers frequently get bombarded with advice on how to reduce or eliminate this type of debt because it can become quite expensive if not paid in a timely manner. One suggestion to provide debt relief from growing credit card balances is to consider taking out a personal loan.

One of the most attractive features of a personal loan is the lower interest rate when compared to the rates for credit cards. Some credit cards have an annual percentage rage of 18% or more. When there are large balances on the cards, the interest payments can grow very quickly. On the other hand, personal loans may be obtained with interest rates as low as 5%, depending on a person’s credit score.

In addition, collateral is not needed to obtain a personal loan. The terms are dependent on one’s capability to pay the money back rather than offering assets up to back the loan. Individuals are also afforded more time to pay a personal loan back.

When seeking a personal loan, it is important to get several quotes from different lenders. Take note of the annual percentage rates, as well as any associated fees. In most instances, the best deal can be obtained when a person seeks quotes from companies that focus on his or her particular type of credit.

A personal loan may be the solution to many consumers’ financial problems. However, there are other types of debt relief available. A Connecticut bankruptcy attorney can evaluate a client’s situation and recommend the best path forward to more financial freedom.