A credit card debt consolidation loan combines the balances owed into one larger loan.This can make repayment more convenient and efficient.In the best-case scenario, the consumer would open the card during a promotion at a “teaser rate.” This rate is low, sometimes zero percent, and lasts only for a promotional period, say 12 months.The goal is then to pay down as much as possible before the period ends and the rate jumps to a much higher level.
Banks issue personal loans for many purposes – including paying off debts. Instead, the lender considers the borrower's credit history and ability to repay the loan when evaluating the application.
Can you consolidate student loans and credit card debt?
It’s possible, but might not work the way you’d expect.
Also, in some cases, the consolidation loan interest rate may be lower than the cards' interest rates.
This sometimes results in savings that may help a responsible borrower pay back credit card debt faster.