Should You Get a Personal Loan to Pay Off Credit Card Debt?

[Yusra3]

If you're struggling with high-interest credit card balances, taking out a personal loan can potentially provide much-needed relief. Personal loans generally offer much lower interest rates than credit cards, which can lead to substantial savings over the repayment period.

For example, if you owe $10,000 across multiple credit cards at an average 20% APR, moving that debt to a 3-year $10,000 personal loan at 10% APR could save you thousands in interest charges. The fixed payment schedule also makes budgeting easier than trying to tackle revolving credit card bills.

However, a debt consolidation loan isn't an automatic fix. You'll need the discipline to avoid racking up new credit card balances on top of your loan payments. It's also important to shop around and gain approval for a personal loan APR that truly outshines your existing credit card interest rates.

If used responsibly solely for debt consolidation purposes, a personal loan can be an effective way to regain control over unmanageable credit card debt and get on the path to becoming debt-free more affordably. But avoiding future high-interest debt is equally crucial.

 

[Suba]

If you have various types of credit card debt, the best step is to make a list of credit card debt from the lowest interest rate to the highest interest rate. If it is not possible for you to sell personal assets such as a car or motorbike, then the most appropriate way is to take a consolidation loan. Of course, you must first look for a bank or other financial institution that provides debt consolidation options. Before you sign a debt agreement, you should read carefully whether they charge fixed interest or floating interest, and most importantly, you must be able to reduce the use of credit cards.