Worried About Your Credit Card Debt During the Pandemic? This Will Help
There's an easy way to lower your monthly payment and clear your debt sooner.
Freedom from debt, faster
With a personal debt consolidation loan, you can trade in all of your existing credit card balances for a single monthly payment at a lower interest rate.
Mogo can get you preapproved for a personal loan of up to $35,000 in just three minutes, and it won’t affect your credit score at all.
The rates on Mogo’s loans start as low as 5.9% APR — a bargain compared to most credit card interest rates, which sometimes top 20%. Repayment schedules range from nine to 60 months.
Depending on how much interest you currently pay on your cards, consolidating your debt could lower your monthly payment and save you thousands of dollars over the course of your loan.
For example, let’s say you owe $8,000 on a store credit card with a sky-high interest rate of 24%. And let’s say your minimum monthly payment is 4% of your outstanding debt.
Since your credit history is decent, you qualify for a 48-month debt consolidation loan at 11% interest.
Here’s what you’ll save:
| Account Type | Amount of Debt | Interest Rate | Monthly Payment |
|---|---|---|---|
| Original Debt | $8,000 | 24% | $320 (decreasing over time) |
| Consolidated Debt | $8,000 | 11% | $207 (fixed) |
Not only will you spend much less on your initial monthly payments, but you’ll also save $5,850 in interest over the course of your loan.
Plus you’ll be debt-free more than 11 years sooner than if you had continued on making the minimum monthly payment on your credit card debt. That’s a huge difference.
A simple way to break the cycle
Things are stressful enough as it is right now without having to worry about compounding credit card interest.
Taking out a personal debt consolidation loan with Mogo is a simple way to reduce your monthly payment and free yourself from debt sooner.
Plus, when you consolidate your debt with Mogo, you’ll also get access to its free credit monitoring service. Credit monitoring can help you work toward your other financial goals, like buying a car or moving to a new place.
Even if you're just curious about your options, getting preapproved for a loan comes with zero cost and zero obligation. It won't hurt your credit score and it could end up saving you a ton of money.
