Are you carrying credit card debt with sky-high interest rates — in addition to your student loans? But think carefully before you use a personal loan to pay off credit cards.
But most of the time, after someone consolidates their debt, the debt grows back. They still don’t have a game plan to pay cash and spend less.
In this situation, it might (theoretically) make sense to take out a personal loan, use this money to pay off the credit card, and then start chipping away at repaying the personal loan with much lower interest.
You can also use personal loans to repay multiple credit card debts by consolidating them all into one payment with only one interest rate.
Debt consolidation is nothing more than a con because you think you're starting with a clean slate.
But the truth is the debt is still there, as are the habits that caused it—you just moved it!