Credit cards provide optimal benefits if used correctly. However, wrong understanding changes the image of credit cards as ‘demon cards’. The benefits that should have been obtained turned into havoc that brought customers to the gate of financial ruin.
Various methods are used to overcome the accumulated debt. If you have known KTA as an emergency fund option, it is possible that KTA facilities can be used to pay off credit card debt. Before paying debt with a KTA, consider the following 5 things.
Before applying for a KTA, make sure your previously good credit status hasn’t turned bad. If the credit status is bad, applying for a KTA will be in vain. Because banks do not provide loan funds to customers who have bad credit status.
Conversely, if your credit status is good, you will most likely receive a KTA application. However, do not be happy just yet. You must meet the requirements requested. If you do not meet the specified requirements, a KTA loan may be refused.
The term of payment or KTA tenor ranges from 6-36 months. After reviewing it turns out you can apply for a KTA, take the tenor KTA according to the ability to pay. If financial conditions have not improved, you can take the longest tenure of KTA.
Current Financial Situation
KTA is a debt that must be paid every month. There are two aspects that affect the amount of installments, namely the loan amount and the grace period of payment. Installments paid should be in accordance with the current financial situation.
Take Low Interest Credit
KTA interest rates vary. Starting from 0.95-3% per month. The best way to pay off credit card debt is to take a KTA with interest below the credit card interest. Instead, pay off credit card installments slowly until all debts are paid off.
KTA has never escaped other costs, such as administrative fees, provision fees, and other costs. This fee must be paid every month together with the KTA installments. If calculated carefully, the amount of other costs is quite good. Apart from the repayment fee, it turns out there are other costs incurred without you knowing, namely the cost of applying for a first time loan.
Before the KTA funds are disbursed, you must take care of this and that document which incidentally requires a fee. Incomplete documents cause the KTA funds not to be disbursed. If you want to apply for a loan again, you must pay the same fee a second time.
Remember, KTA is not a Credit Card Debt Solution
You need to know that KTA is not the best solution to pay off credit card debt. Indeed, credit card debt is paid off if you get KTA. However, on the other hand, you still have to pay the KTA installments and interest. That’s the same as you move from debt to debt. Therefore, consider all aspects carefully to avoid losses.