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Sinjaygiles

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Is it Wise to use Personal Loan for debt Consolidation

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Never, 

Most Credit Card Debt is unsecured Debt, 

to get a Personal loan you would have to put up some collateral to secure the Personal Loan. 

Just Pay off your Debt as quick as you can. 

Way take from Peter to Pay Paul, 

Same Debt just a different pile of it. 

Top Contributor
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546 People Helped

It's not a simple yes and no answer, it's going to depending on one's situation. Are those debts in collections/charged-off? Then no, not so great idea, but if you are in process of being sued or already received a summons? Then it's not a such bad idea to get a loan to pay them off befor having a judgement(s) on your report, Or to prevent those debts go into collections in the first place? then a loan would be worth a serious consideration... Are those debts on credit cards that are still open/active? Then you might agreed that a personal loan with 10% interest are better than paying 22% on credit cards. However, people tend to run up their credit cards again soon after pay them off, then you would have both a loan and nearly maxed cards to deal with. That won't be ideal at all... Again, it all depends on your particular scenario.

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