Does consolidating credit cards affect credit score

This will also mean your life gets simpler as you have to take care of only one due date and bother about one EMI as opposed to several due dates and multiple payment amounts.If consolidating credit card debt is on your mind, a personal loan is a good way to go ahead with it.

One also has to remember that paying the minimum outstanding every month will mean you take years to settle your credit card debt.

Better grip of finances: A personal loan is an unsecured loan like a credit card debt, but allows an individual to make some choices.

You have the option to shop around and get the best interest rate possible.

It is very easy to overspend on a credit card since you do not see actual money changing hands, nor get a sense of your bank balance coming down.

So, what do you do when you have spent more than what you can pay and now feel trapped in the credit card debt cycle.

There are a number of ways to tackle this situation in the form of converting the outstanding to EMIs (depends on the card you hold and the bank in question), balance transfer to a new card, but the most popular form of settling a credit card debt is taking a personal loan.

So, does it make sense to convert your credit card debt to personal loan?

The positives: Taking a personal loan has some advantages that make it a popular means to settle credit card bills.

Firstly, the rate of interest on personal loans is significantly less.

Tags: , ,