Patriot Funding’s personal loan scam does not pay off credit card debt
Patriot Fundings Personal loan offers are a bait and bill of exchange scam. Patriot Funding has started to flood the market with personal loan, debt consolidation and credit card facilitation offers in the mail with the My Patriot Funding website. The problem is that the terms and conditions are at least confusing and possibly even suspect.
The interest rates are so low that you must have near-perfect credit to be approved for any of their offers. Best 2020 Reviews, the personal finance review website, followed Patriot Funding, Georgetown Funding, Credit 9 credit ratings, and other.
Credit cards are a great way to earn rewards and points while you spend. Many people use them in a variety of ways, including paying medical bills, various shopping bills, buying a car, etc. However, if you are not careful, they can get you in great trouble. Credit card debt is becoming an increasingly widespread problem for everyone around the world, especially after the negative economic impact of the COVID-19 pandemic, which is forcing many Relief for corona credit cards.
As a result of the pandemic, many people are struggling to pay off their credit card debt efficiently. One strategy for paying off credit card debt as quickly as possible is by taking out personal loans. This strategy involves consolidating your debts and paying off multiple credit card debts at the same time.
Personal loans can be an excellent alternative as they have many advantages. If you’re battling credit card debt, here are five reasons you should consider paying it off with personal loans.
Be careful not to fall for it Debt Consolidation Fraud.
1. Lower interest rates
The most obvious benefit of using personal loans is that the interest rates on personal loans are typically much lower than on credit cards. For example, the average interest rate on personal loans is 9.5% while the credit card interest rate is 14.52%.
A personal loan can help borrowers pay off multiple credit card debts at the same time. With a personal loan, you can settle all your credit card debts at once and you don’t have to pay extremely high interest rates per month. It saves you the money that you have to pay per month as you only pay one bill each month.
In addition, using personal loans to pay off your debts does not increase the monthly bill you would have to pay. The opposite is true if you fail to pay off your debt as the credit card companies will deduct a percentage from your credit card balance. This means that the monthly amount to be paid also fluctuates.
Because of this, it also takes much longer to pay off credit card debt as the amount increases every month. Hence, with a personal loan, you can get your debts paid off much sooner.
2. Consolidated Payments
By taking out a personal loan to pay off multiple credit card debts at once, you would be consolidating all of your debts into one and ultimately making your life easier. As a result, your multiple monthly payments become one. By streamlining your monthly payments in this way, you can manage your monthly budget and expenses much more efficiently.
3. Final Debt Free Date
After you have taken out a personal loan and paid off your debts with that amount, you also have a final date that all of your debts will be paid off in full. This is not the case with credit card companies, which allow customers to continue adding to their debts. Thus, the exact time it takes to be debt free also becomes indefinite and constantly changing. This is fine for people who can pay the full amount each month, but it can create problems for those who don’t typically pay the full amount each month. In addition, it does not apply to people who will not be able to control their spending with credit cards either. For this reason, personal loans also give you more motivation to stay focused and feel more relaxed.
4. Improving creditworthiness
When you use personal loans to pay off your credit card debt, your credit score improves much faster too. This is only true if you are settling your debts and not falling back into the habit of excessive shopping and debt increases.
The reason for credit improvement is because personal loans are not counted as part of a consumer’s credit utilization rate. The lower rate ultimately improves creditworthiness.
5. Pay off other debts
Because using personal loans to pay off your credit card debt lowers your interest rate, they ultimately result in saving hundreds of dollars that would otherwise have been spent on interest. So you can use this amount to pay off your other debts, e.g. B. Mortgage debt, student loan debt, tax debt, etc.
Important points to note
Personal loans have a fixed rate of interest, a fixed monthly payment, and a fixed amortization schedule that will help you determine the exact date that you will be completely debt free. For these reasons and the above, people are choosing personal loans to pay off their credit card debt. While this is a great option, it may not be so great for everyone.
One of the pitfalls of personal loans is the freedom they give you to use them for anything. Hence, you need to be careful and make sure that the loan is being used to consolidate your credit card debt and not be tempted to borrow things that you will later regret. It’s important to remember that personal loans are also another way to borrow more money that you need to pay back.
Also, keep in mind that personal loans go into your credit history and affect your creditworthiness. You should therefore pay at least the minimum amount before the due date so that it does not have a material impact on your creditworthiness and history.
The bottom line
A personal loan can be a great way to consolidate debt and not pay high interest rates. However, you need to weigh all the options that are available to you before applying for a personal loan.
More importantly, whichever method you use to settle debt, you must remember that in order to get out of debt, you must be in control of your spending. Also, it’s always a good idea to switch to cash on credit cards so you don’t get in into debt again in the future.