Personal loans can be better than credit card

Personal loans for big purchases between $5000 to 50,000 are making a comeback after being overtaken by credit cards for many years. Credit cards are more flexible – but have generally had a higher interest rate and are best suited to short term borrowing for small purchases. They suit borrowers who lack security and can assist with budgeting or to quarantine debt. Using an asset such as car or caravan as security will attract a lower interest rate (6.80-14.00 per cent for a car loan).

Source: Herald Sun

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