"Why should I pay off my credit card debt with a loan?" - A common concern
Many Swiss people do not realise that the interest rates on credit card debt are very high - often in the double-digit range. An instalment loan or consumer credit can be a much cheaper alternative here.
"My credit card has an annual interest rate of almost 15 %, that eats up my budget!" - Thomas from Lucerne
Did you know that credit card debt is one of the most expensive financial liabilities?
Interest rates can rise enormously, especially for large amounts or longer-term repayments. It is therefore almost always worth switching to a traditional loan.
Why are loans more favourable than credit card debt?
- Lower interest rates: Instalment loans in Switzerland are often 4-7 %, credit cards often 10-20 %.
- Fixed terms: You know exactly when the debt will be paid off.
- Plannable instalments: Monthly payments are constant and easier to calculate.
- No additional fees: Credit cards can incur additional costs such as annual fees.
Comparison: Credit card vs instalment loan (sample calculation)
| Amount of the debt | Credit card interest (15 %) | Instalment loan interest (5 %) | Savings per year (CHF) |
|---|---|---|---|
| 5,000 CHF | 750 CHF | 250 CHF | 500 CHF |
| 10,000 CHF | 1,500 CHF | 500 CHF | 1,000 CHF |
| 15,000 CHF | 2,250 CHF | 750 CHF | 1,500 CHF |
This is how the redemption of a credit card with a loan works
- Start credit comparison: Find favourable loan offers especially for debt restructuring.
- Apply for a loan: Online, simple and fast.
- Replacement of the credit card: The new credit bank replaces your credit card and brings it down to CHF 0!
- Pay monthly instalments: The new loan has lower interest rates and fixed terms.
Frequently asked questions (FAQ) about cancelling a credit card with a loan
1. can I use any loan for redemption?
Yes, instalment loans, mini loans or consolidation loans are suitable.
2 How quickly can I pay off my credit card debt?
Depending on the provider, usually within a few days to weeks.
3. what does debt rescheduling cost?
Often no or only low fees; watch out for early repayment penalties.
4. will my creditworthiness be checked?
Yes, but the conditions are often more flexible with debt rescheduling loans.
Further links:
- Internal linking:
Why should you restructure your credit card debt now?
"I paid off my credit card debt with an instalment loan from credxperts.ch and now save over CHF 200 every month." - Martina from Bern
Seize the moment to replace your expensive credit card debt with a favourable loan and be financially free in the long term.