Before enrolling in a credit card debt consolidation program, learn about the possible impact to your score. Each option can affect your future ability to borrow money.

Some people will find that they only qualify for one program – but it offers a large reduction in balances. The other loan options merely change repayment terms.


If you thought that paying down credit card balances was tricky, wait until you must choose between reducing the principal on a personal loan at the same time.

Low-interest balance transfer credit card offers seem to make sense on the surface. Why pay more when you don’t have to? However, beware of the hidden issues you may encounter.


What happens if you fail to pay your credit card balances for a very long time? Revolving balances are unsecured, so the bank cannot immediately repossess your car, or foreclose on your house.

However, they can take you to court to compel payment and the consequences are not pretty. A judgement allows them to seize a variety of assets – provided they sue in time.


Should you pay off your credit card balance by taking out a new student loan? Sometimes lenders fund more than what you need to pay for books, tuition, room, board, and other expenses.

Transferring the amounts owed has distinct advantages and disadvantages. Learn the ropes before you pull the trigger.


Getting a personal loan to pay down your credit card balances may save you money, and help you become debt free. Alternatively, this could get you into more trouble.

You are trading one form of borrowing for another. Sometimes the terms are better, other times they are just different. Learn the pros and cons.