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.

  1. 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.
  2. 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.
  3. Only purchase with money you have from paychecks rather than charging to your credit cards.

Image via Quicken Loans.