Consolidating debt pros and cons
Any savings you get from a lower interest rate need to more than cover the transfer fee.
You might also take on new annual fees if you open a new credit card.
Even if you get 0-percent APR, that rate might not last for long.
With other loans, the costs will be invisible, but they’re built into the interest rate.
Compare several loans to find the combination of upfront fees and interest charges that benefits you the most.
Interest rates: The rate you pay will depend on the type of loan you use.
For example, a 0-percent APR offer for three months might not be useful if you expect to take three years to pay down your debt.
Fees: You might or might not pay any upfront fees for a debt consolidation loans.
Credit card balance transfers are most attractive when you know you will pay off debt quickly.