Which is a better route? A “debt- consolidation loan” or a “personal” loan to pay off credit card bills?
January 25th, 2012
Question by DEBT: Which is a better route? A “debt- consolidation loan” or a “personal” loan to pay off credit card bills?
How does either loan affect credit scores etc…?Which one tends to get the better interest rate? Any reccomendations on what financial institution to go through? How much money do you need to make to take out approx. 10k? Any other info you can provide would help out a lot!
Best answer:
Answer by michelle1984
Personal loan. Debt consolidation ruins your credit
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However you should note that credit card debt consolidation loan may not be right for all. Before applying for any loan, consult your financial advisor and apprise him of your problem. He will analyze your situation, and decide whether credit card debt consolidation loan is right for you or not. Take this loan only if he recommends it.
Most of the financial advisors offer free service or charge a nominal fee. Approaching a financial company that offers credit card debt consolidation loan will save you the consultation fee, since they do not charge for their advice.
Your options depend on your income and your credit. Higher income and better credit will enable you to get better loan options. Poor credit and low income will push you into finance company loans and other sources of high interest debt.
There is actually no difference between a debt consolidation loan and a personal loan. You can use a loan for debt consolidation or any other personal use.