Personal Finance and Investing

If the loan being offered means less interest charges than just paying the existing debt, then sure, why not?

Many credit cards offer zero interest debt consolidation programs that will require paying back in a specific time frame, say 18 months. A loan from a bank or financial institution will possibly cost more in fees and interest rates than such an offer. Look at the numbers carefully, is the point.

I used such a loan in the past and it worked out fine. It saved me about $500 in interest over the life of the loan vs what I would have paid the CC companies.

Also, if you have debt spread across several cards or accounts, paying them all off in the span of a few days looks really good to the credit rating agencies. Using that loan boosted my credit score significantly over time.