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Is it worth it to take out a loan to pay off my Credit card dept?

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asked Nov 30, 2015 in Finance by anonymous
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It depends on the details.

If your credit card account is overdue or overdrawn significantly, or if the balance is too high and rising faster than you can pay it, then a loan can make the financial situation more manageable.

On the other hand, depending on what kind of loan it is, it might not report on your credit rating. Closing a credit card can actually hurt your score, whereas maintaining one responsibly can actually help out.

If the loan available has a lower interest rate then the credit card, it can save you money in the long run because the balance grows slower.

[1]http://www.creditcards.com/credit-card-news/personal_loan-pay-off-credit_card-debt-1580.php
[2]http://www.bankrate.com/finance/credit-cards/6-risky-ways-to-pay-off-credit-card-debt-1.aspx
answered Nov 30, 2015 by Topher (27,830 points)

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