What are the downsides of using a personal loan to consolidate credit card debt?

The main downsides are cost and behavior. Personal loans carry origination fees (often 1% to 8%) deducted upfront, and if your credit is only fair, the rate may not be much better than your cards. Stretching the term lowers your monthly payment but can increase total interest paid. And unlike a 0% balance transfer, you start paying interest immediately from day one.

The biggest risk, though, is freeing up your credit cards and then charging them back up, leaving you with both the loan and new card debt, which is worse than where you started. A personal loan works best when you get a clearly lower fixed rate, keep or shorten your payoff timeline, and then leave the paid-off cards alone. Discipline, not the loan itself, determines whether it helps.