Deep, deep dive
What are the differences between debt on a credit card vs debt from a personal loan?
Interest rates on credit card balances are often much higher.
Credit card interest rates are often as high as 18%, compared to just 10% or less on a personal loan.
The rate of repayments on personal loans are fixed.
You’ll be paying monthly installments throughout the term of the loan. A credit card is much more flexible and lets you pay any amount you want, so long as you pay the minimum amount required.
However, check out our content on credit cards to learn how just meeting the minimum payments on your credit cards results in you paying a lot of interest.