People in Texas who are struggling with credit card debt might want to consider a personal loan to pay it off. It is not always necessary to have excellent credit to get a personal loan that has better repayment terms than the credit card. Another option is a balance transfer to a credit card that offers an APR of 0%.
There are advantages and disadvantages to both methods. Some people may prefer a personal loan simply because it frees them from credit cards altogether. A personal loan may also be the right choice for someone who will need at least four years to pay off the debt. However, over a shorter period of time with an interest rate of 0%, a person will pay less using a balance transfer. With a personal loan, the parameters are clear in terms of how much should be paid monthly and when the loan will be paid off. With a balance transfer, a person must have the discipline to make more than the small minimum payment each month. The person should also avoid adding anything to the credit card.
A person who gets a personal loan should consider several options. The individual should look for the best APR and also apply for loans that are available based on the person's credit score.
In some cases, a person's debt may be overwhelming. The person may not qualify for a balance transfer or a personal loan, or the person may still be unable to afford the payments. If this is the case, the person may want to consider bankruptcy. While this can hurt the individual's credit score, struggling under debt can as well, and credit can be rebuilt. A bankruptcy filing might put an end to credit harassment and other actions and provide a fresh start.