As we bid adieu to what has been a difficult year for many, there’s still time to get a head start on your financial goals before ringing in the new year.
Despite the nation entering a recession triggered by the COVID-19 pandemic, many Aussies have been working hard to pay down their debts this year.
New figures released by the Reserve Bank of Australia show Australians have slashed the national credit card bill to $19.71 billion in October 2020. This marks the first time debt accruing interest has dropped below $20 billion in almost 16 years.
Throughout 2020, Australians have managed to pay off $7.8 billion in debt and have closed down almost one million credit card accounts.
If you’re eager to follow suit and start the new year with a bit less plastic in your wallet, one option that might be worth considering is a debt consolidation personal loan.
Using a personal loan to consolidate existing debts could potentially help you save on interest costs, as you may be able to access a more competitive interest rate than your credit cards currently offer. You might also be able save money by avoiding paying duplicate account fees.
Keep in mind that consolidating your debts with a personal loan still means you are taking on a financial commitment. It’s worth comparing all of your options before opting for a debt consolidation personal loan. And, for advice specific to your personal situation, consider speaking to a financial adviser.
RateCity has put together some of the top-rated personal loans for December 2020 to help you start your personal loan comparison.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
Best excellent credit personal loans
Best green personal loans