Get your free financial scoreSign inYour data on this device
Free to use. No account required.

Is it smarter to consolidate credit card debt with a personal loan or a balance transfer card?

Both convert scattered high-interest card debt into one payment, but they suit different situations. A 0% balance transfer card is cheapest if you can repay within the 12 to 21 month promo and your balance fits the credit limit; you pay only a 3% to 5% transfer fee. A personal loan works better for larger balances or longer payoffs: it has a fixed rate (often 8% to 20%), a fixed term of 2 to 7 years, and a set end date that removes the temptation to re-borrow.

Rule of thumb: smaller balance you can crush fast, use a transfer card; bigger balance needing 3+ years, use a fixed-rate loan. Whichever you pick, stop using the paid-off cards. Compare total cost at wealthserene.com/tools/debt-payoff.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures