Personal loans and credit cards are commonly used for personal financial requirements. People generally use credit cards to make purchases and personal loans for larger expenses like weddings, education, medical treatment, etc. 

However, some people get a personal loan to clear their existing debts like credit card dues. When you make part payments or minimum amount due payments on your credit card bills, it adds to your credit card debt.

The card issuer charges you a hefty interest on your credit card debt that may be as high as 48% per annum. Mounting debt is a cause of worry.

Should I Take a Personal Loan?

A smart way to reduce such a debt burden is a personal loan. You can take a personal loan from a reputed lender at low-interest rates and pay off your high-interest credit card debt. You can make part payment of a personal loan in the form of monthly EMIs and save significantly from the low-interest charges. 

This method of taking a low-interest debt to pay off existing high-interest debts is known as debt consolidation. A personal loan has no restriction on how you use the money. Therefore, you can take a personal loan and become debt-free from credit card debts. 

Another benefit of paying off your credit card debts by taking a personal loan is that it will save your credit score from dipping down further by paying off your pending debts.

Thus, it is wise to get a personal loan to wind up high-interest credit card debts.

Also Read: Is it Possible to Take a personal loan without an income proof?