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timmorrison23

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Taking out a personal loan?
I have 3 credit cards with a total debt of around 12k. They each have an interest rate of around 16-18%. Understanding the pitfalls of paying off old debt with new debt (and not using the soon to be paid off cards) is there any real downside to taking out a personal loan with a much lower interest rate to pay off my debt over the course of 48-62 months?

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Your score may still see a down grade at first.  The new loan will bring down the average age of credit, as well as at least one hard credit inquiry. These will be offset by a lower percentage of credit usage. but still maybe a drop for a few months.

Over the long run (using credit cards only to amount you will pay off each month or at least often enough to keep open) this is a good step. AGAIN only if you are responsible enough not to rack up the debt again.  Any time you can reduse the amount of interest you pay, you can pay it off sooner, and by going to a loan you now have a set payment that you know you can pay each month that helps budgeting.

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