Consolidating Debt via Personal Loans
A Debt Consolidation Loan involves taking out a new, lower-interest fixed personal loan to pay off multiple high-interest credit cards or revolving store accounts.
Key Benefits
- • Replaces variable 24%+ card interest with fixed lower rate
- • Combines multiple bill dates into one single monthly payment
Critical Pitfalls
- • Does NOT reduce total principal balance owed
- • Requires good credit scores (680+) to qualify for low rates