We are a nation of people in debt, and it doesn't seem to be getting any better.
According to data released by the Federal Reserve this February, Americans' revolving, non-mortgage credit increased in December 2014 to .3 trillion -- while non-revolving credit (such as student and auto loans) rose to .42 trillion, as reported by USA Today.
Studies released by Urban Institute in July 2014 showed that 35 percent of Americans -- roughly one out of three -- are so behind in their finances that they have debt in collections.
Many people become overwhelmed by their debts, but they don't have to be.
As with all things in life, however, there are pros and cons to taking out yet another loan. (We’ll explain why below.) While there could be great benefits to taking on a personal loan to pay off credit cards, you will want to weigh those benefits against any drawbacks before making your decision.
There’s no “right” or “wrong” answer — you’ll want to consider all the facts, then judge for yourself.
One potential option — which holds both upsides and downsides — is refinancing this debt by taking out a personal loan from a financial institution such as So Fi, Citizens Bank, or Upstart.This makes it easier to pay off debt because you are no longer bound to multiple payments and due dates each month.There are two primary ways you can consolidate debt: balance transfers and personal loans. If you are looking to only consolidate credit card debt, a balance transfer is a great option.One way to help alleviate some of the strain is to consolidate debt from multiple sources.Basically, debt consolidation takes debt you have from more than one source, such as multiple credit cards, and combines it into one lump sum.