BankBazaar's Should I take personal loan to pay off my credit card dues?, Understanding personal finance becomes easy at bankbazaar.com, our guide features articles and tips on subjects related to debt and money management.
Even though it is wise to use a low interest rate Personal Loan to pay off Credit Card dues (charged with high interest), it is important to keep a few points in mind. First, it is essential that you calculate the total cost of the Personal Loan before choosing one. This is because prepayment charges, foreclosure charges and processing fees could result in a very high cost loan. In an instance such as this, it would make little sense to take a Personal Loan to pay off your Credit Card dues. Secondly, check whether you can convert your Credit Card dues into EMIs before opting for a Personal Loan. Those EMIs could be more affordable than Personal Loan EMIs. Some banks even provide better interest terms if you pay off your dues through EMIs. So, keep these points in mind before opting for a Personal Loan.
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