Getting a personal loan to pay down your credit card balances may save you money, and help you become debt free. Alternatively, this could get you into more trouble.

You are trading one form of borrowing for another. Sometimes the terms are better, other times they are just different. Learn the pros and cons.


Before enrolling in a credit card debt consolidation program, learn about the possible impact to your score. Each option can affect your future ability to borrow money.

Some people will find that they only qualify for one program – but it offers a large reduction in balances. The other loan options merely change repayment terms.


Debt consolidation loan programs for credit card balances can do more harm than good. Often, applicants needlessly spend time and money to obtain lower monthly payments.

If only a government sponsored agency would step in and keep people out of trouble. Usually, they make matters worse. Find out how the public gets involved.


Paying your credit card on time does not stop banks from charging interest. If you are borrowing money, expect to pay for the privilege.

However, if you pay your balance in full every month, you may qualify for a member grace period – except if you take out a cash advance.

Know the rules before using your account.


Paying your credit card balances prior to the account due date has many advantages including lower interest costs, avoided late fees, and fewer delinquencies to stain your consumer report.

An improvement in your balance to limit ratio may not be one of those benefits unless you make an extra payment just before your statement date. Try this strategy before considering debt consolidation.


If you thought that paying down credit card balances was tricky, wait until you must choose between reducing the principal on a personal loan at the same time.

Low-interest balance transfer credit card offers seem to make sense on the surface. Why pay more when you don’t have to? However, beware of the hidden issues you may encounter.


What happens if you fail to pay your credit card balances for a very long time? Revolving balances are unsecured, so the bank cannot immediately repossess your car, or foreclose on your house.

However, they can take you to court to compel payment and the consequences are not pretty. A judgement allows them to seize a variety of assets – provided they sue in time.


Should you pay off your credit card balance by taking out a new student loan? Sometimes lenders fund more than what you need to pay for books, tuition, room, board, and other expenses.

Transferring the amounts owed has distinct advantages and disadvantages. Learn the ropes before you pull the trigger.


There are meanings and there are consequences. The meaning of revolving a credit card balance is easily defined. The consequences are more complex.

Revolving a credit card balances means you pay interest on the account, and may find that rolling over a balance lowers your risk score as well.


Posted 05/2/18 1:37 PM by Kevin Haney