- Posted June 11, 2014 by
Eagle Finance Personal Loans Helping Families
A Federal Reserve's Survey of Consumer Finances, finds that nearly four of every ten American families have an outstanding credit card balance. Credit cards are designed for short-term borrowing and if you are carrying a long-standing balance, you likely are paying way too much interest.
You probably know that second mortgages, such as home equity loans or home equity lines of credit, can be cheaper alternatives to using a credit card. However, not everybody owns a home or has sufficient equity to borrow against. For those who are not in a position to obtain a mortgage, a personal loan from a lender like Eagle Finance in Florence Kentucky can be a cost-effective alternative to carrying a credit card balance.
Interest Rate Trends
The numbers make a compelling case. According to the Federal Reserve, the average interest rate charged on credit cards is 12.89 percent, while the average rate on a two-year personal loan is 10.22 percent. That can make personal loans a cheaper form of credit by 2.67 percent. Visit www.eaglefinanceky.com to find out more.
The rate advantage for personal loans widened last year. During 2013, the average rate charged on credit card balances rose by eight basis points (8/100ths of one percent), while the average rate on personal loans fell by 42 basis points. Those moves in opposite directions can make personal loans even more attractive as alternatives to carrying credit card balances.
Finally, unlike credit cards, many personal loans come with fixed interest rates, which make it easier to budget and keep your payments from increasing. That's a big advantages when inflation becomes a concern. Eagle Finance may be just the place you need.