There are two groups of people in the financial world: those who believe personal loans are a good idea for paying off credit card debt and those who disagree. These are a few reasons why it is not worthwhile to pay off credit card debt with a personal loan.
- A lot of times, the amount of debt isn’t the problem: it’s a problem with excessive spending habits and living beyond your means. If you get a personal loan, the credit card may just come back.
- Most personal loans require you to pay them back in the span of five years while you can pay back credit cards over a longer amount of time in smaller payments.
- Only purchase with money you have from paychecks rather than charging to your credit cards.
Image via Quicken Loans.
