How Can Fast Cash Loans Help With Credit Card Debt Consolidation?

Australians have some of the highest household debt ratios around the world. Many people struggle with credit card debt and feel overwhelmed at the prospect of repaying their debts in a timely manner. If you're looking for a credit card debt solution, fast cash loans could be right for you. Keep reading to learn how fast cash loans can help you consolidate your credit card debts and save money whilst you're at it. 

One Payment Instead of Many 

After you borrow money with a fast cash loan, you can distribute that lump sum to pay off each of your outstanding debts. For example, if you have three credit cards, each with its own monthly payment, you'll pay the full balance on each of those debts.

In this way, you'll turn three monthly payments into one payment to repay your fast cash loan. This makes bill-paying more convenient and can save a lot of time. 

Paying Less in Fees

The average credit card interest rate is almost 20% in Australia today—and that doesn't even include annual membership fees, late fees, and other assorted costs that often come with credit cards.  

The longer it takes to repay your credit cards, the more money you lose to interest and fees. Over time, you might end up paying back double the amount you originally spent, or even more. When you pay the full balance of your credit cards, all those credit card fees stop. 

Instead, you'll simply repay your fast cash loan every month. The interest rate on this type of loan is often significantly lower than that of credit cards. Without the higher interest rate and fees, you can save a great deal of money. 

Avoiding the Payday Loan Trap

It's important to note that fast cash loans and payday loans aren't the same. Payday loans typically charge extremely high-interest rates (sometimes even higher than credit cards), and they're very short-term loans that demand repayment within a few weeks or so. In addition, payday loans are usually limited to fairly small amounts.

In contrast, fast cash loans can give you a large sum of cash to pay your credit cards off. You can then have an extended period to repay the loan.

If you'd like to learn more about fast cash loans and how they can work for you, reach out to a fast cash lender in your area by phone or online today.