james asked in Business & FinanceCredit · 4 weeks ago

isn't a good idea to take a debt consolidation loan instead of taking a personal loan to clear debts?

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  • Judith
    Lv 7
    4 weeks ago
    Favorite Answer

    I don't think either one is a good idea.  Either would just clear up more money for you to spend on even more things you don't need.  I'm in my early 70s; I don't know one single person who cleared debt and stayed out of debt by doing either one.

    You are in the habit of overspending.  You aren't going to change your behavior by taking the easy way out (consolidating or personal loan).  You need to start paying off your bills by concentrating on the lowest one first while making minimum payments on the others then, when the lowest one is paid off, you work on the next lowest one while making minimum payments on the others.  That is called the snowball method.

    While you are doing that you make sacrifices.  You don't eat out.  You brown bag lunches.  Get a thermos for coffee and make it at home.  Cancel some of your cable options.  If you can't afford to pay cash for something then you don't get it.  Use public transportation.

  • 4 weeks ago

    REFINANCE debts - and it depends on the rate each one offers.

  • Anonymous
    4 weeks ago

    STOP TROLL. You have asked the same question 7-8 times over 2 months. You have BAD credit. You are not getting a loan except for a pawn loan.

  • 4 weeks ago

    It seems like a "quick" way to get out of your debt, but it's not.  A more effective way to get out of debt is to get a higher-paying job, second job, selling things you no longer need, and eliminating some of your luxuries (internet, high-cost cell phone plan, eating out, etc.). 

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  • Judy
    Lv 7
    4 weeks ago

    Neither type of loan CLEARS you debt, it just moves it, and sometimes gives you a chance to get even DEEPER in debt.

  • 4 weeks ago

    The best idea is to take the loan with the best interest rate. That could be either one.

  • DON W
    Lv 7
    4 weeks ago

    If you can get a debt consolidation loan at a reasonable interest rate, it would be the better of the two options. For instance, if your current debts are charging 15% interest, and your debt consolidation loan charges you 10%, it would indeed help you to better manage your debt.

    A personal loan is unlikely to have a reasonable interest rate.

    Be aware, though, that neither type of loan is easy to get.  They are unsecured loans, meaning they are risky to the bank or credit union. 

  • No it isn't a good idea. Nobody ever got out of debt, by taking on more debt.

  • 4 weeks ago

    A debt consolidation loan is a personal loan and they are very tough to get.

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