Consilidating credit card debt
In addition, you'll have a fixed payment schedule that requires you to pay back the debt in 2 - 5 years (depending on the terms of the loan).
That can help you avoid the minimum payment trap that can keep you in debt for years to come.
However, this is only a good debt consolidation plan if you can find a credit card with that lower interest rate and a minimal or nonexistent balance transfer fee.Your chances are greater than they would be at a bank.When getting a personal loan to consolidate your debt, make sure you consider the interest fees and make sure you can comfortably make the monthly payment for the duration of the repayment plan.For example, say you have three credit cards and decide to use debt consolidation to combine all three into one larger consolidation loan.In that case, the new loan would have a balance equal to the sum of the other loans. You've probably heard of credit card balance transfers, but another option is a personal loan.