Consolidating credit card debt into a loan
And while a consolidation loan for credit cards can be a good option when you have a lot of bills to pay off, there are plenty of alternatives to consider. Review your current financial picture and goals with a financial advisor or specialist certified credit counselor to determine the best plan for your needs.Before you do, let's take a look at the pros and cons of each option.Let’s assume your credit card charges 18% APR, for example, and you qualify for a personal loan with a 12% APR.
Borrowers who want to more effectively manage their debt or get better loan terms could be interested in consolidating loans.
If you’re hoping to consolidate student loans and other debts into the same loan, don’t expect to pay lower interest on the new loan.