When is debt a SMART idea?

Date: January 13, 2022

Taking on more debt when you’re already in debt sounds like a bad idea. But is it?

Carrying a balance on a credit card or multiple credit cards can be costing you money with their interest rates typically ranging between 10 and as high as 35%. By getting a personal loan, you can save money and pay off debt faster as a smarter approach to debt.

Did you know that if you carry a balance of $5000 on a credit card at the average interest rate of 19 per cent—paying the minimum monthly payment of 4 per cent—it will take you close to 12 years to pay off? You also pay over $3000 in interest! With a personal loan at Westoba, your interest rate can be significantly less. Your loan could be paid off faster resulting in paying significantly less interest!

Smart debt can save you money. Smart means you keep those high-interest credit cards for what they are intended for and use low-interest debt to purchase the things you want to have. Some credit cards offer valuable cardholder rewards and insurance benefits that are great to take advantage of!

Set a budget and use that credit card to collect the rewards every month. Be sure you have enough in your budget to pay for those purchases every month and avoid carrying a balance on a credit card. Click to learn more about our Collabria Credit Card offer and how you can earn cash back, merchandise, gift cards, and travel!

Westoba Collabria Infinite Credit Card

You can use a personal loan for what you want. Some examples include:

• Existing debt
• Home renovations
• Recreation vehicles
• Side business development
• Secondary education and more

A personal loan gives you the freedom to invest in yourself with fixed payments you can rely on at a reasonable interest rate.

Applying for a loan has never been easier. Contact our Virtual Services team and they can get your application started over the phone or by virtual appointment. Once your loan details have been approved, you just stop by the branch for signing. Once completed, your loan will be advanced.

Investigate more of Westoba’s personal borrowing options.

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