If you’re reaching the point of having too many loans to keep track of and manage, having a debt consolidation plan can bring you some much-needed financial relief. Using a personal loan to roll all of your debts into one single loan with a lower interest rate has long been a common strategy to pay off debt, but this doesn’t necessarily mean it’s for everyone.
The answer to the question “are personal loans bad?” is a no when you have a trustworthy lender. However, scams and payday predators do exist which is why it’s important to arm yourself with the right information in order to protect your financial future.
Understanding the ins and outs of credit card refinancing vs debt consolidation will help you make the best choice to pay off your debt.