Personal Loan vs. Credit Card: Which is Better for Debt Consolidation?
When you're carrying high-interest debt, a personal loan can be a powerful tool — but it's not always the right choice.
J
Jane Editor
Financial Writer
Personal Loans for Consolidation
Fixed rate, fixed term, and a single monthly payment makes personal loans ideal for consolidating multiple debts. If your credit score is 670+, you can likely get a rate below 15%.
Balance Transfer Cards
0% APR for 12-21 months can be even better if you can pay off the debt within the promotional period. The math heavily favors this option for smaller balances.
The Verdict
For balances under $5,000, consider a 0% APR balance transfer card. For larger balances or if you need more time, a personal loan is usually the better choice.
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Personal Loans
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