Virginia residents and others who have credit card debt may find it easier to pay off by converting those balances into a personal loan. Personal loans can come with an interest rate of about 5% for those who have good credit while the average credit card interest rate is about 18%. Another benefit for borrowers is that there is generally no need to use collateral to secure a personal loan.
Generally, borrowers will have about two to five years to repay their personal loan in full, and the most favorable terms may be available for balances repaid in 36 months or less. Ideally, borrowers will pay off their debt as quickly as possible to avoid paying more interest than necessary. Those who are looking to refinance their credit card balances may find that getting a personal loan is easier than qualifying for a balance transfer. Furthermore, this option can be best for a person who wants to wean themselves off of credit cards.
Individuals may also have more success by working with dealers that focus on borrowers in their credit range. It isn't uncommon for some lenders to cater exclusively to those who have excellent credit while others cater to those with average credit. Ideally, anyone looking for a personal loan will shop around to get as many rate quotes as possible to make an educated decision.
Those who are struggling to repay their credit card debts could decide to file for Chapter 7 or Chapter 13 bankruptcy protection. Bankruptcy may make it possible to have a debt balance eliminated without the need to pay creditors anything. Generally, a debtor will receive an automatic stay from creditor contact when he or she files. Debtors might retain some or all property during and after a bankruptcy proceeding.