If you’re considering consolidating your credit card debt, you basically have two options: a personal loan or a balance transfer. A personal loan is a loan you take out with a bank. You use it to pay off all your credit cards, and then you pay off the loan over time. A balance transfer is when you move your balances from multiple credit cards onto a single credit card.
But which is better? Personal loans have lower interest rates and a fixed end date for paying off your debt. Balance transfers can offer attractive terms, but there are some things that can be problematic over the long term.
