 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: When Debt Consolidation May Be a Good Option\n--------------------------------------------\nYou can use a personal loan for just about anything you want. But if you're thinking of using it as a debt consolidation loan, here are the times when it's worth considering:\n*   **You already have a good credit score.** Personal loans are available to borrowers across the credit spectrum. But if you want favorable terms and a low interest rate, you'll generally need at least a good credit score, which starts at a FICO® Score☉ of 670.\n*   **You have high-interest debt.** The average personal loan interest rate is 9.41%, according to Experian data. In contrast, the average credit card interest rate hovers around 16%. If you can qualify for a lower rate than what you're paying now, consolidating your debt could allow you to save some money on those interest charges.\n*   **You have a repayment plan.** One of the dangers of credit cards is that as a type of revolving credit, they allow you to borrow and pay off funds on an ongoing basis—and as a result, there's no set repayment plan. If you keep using your card and paying just the minimum amount due every month, you could remain in debt forever. Personal loans, on the other hand, have a set repayment term, so they can be an excellent alternative if you're motivated to have a plan and stick to it.\nKeep in mind, though, that if your credit score is solid and you have a clear plan for repaying your debt, you may also benefit from a balance transfer credit card. These cards offer introductory 0% APR promotions, which could save you even more money if you can pay off your debt during the promotional period.\nHowever, the interest rate will jump when the promotional period ends, so consider this option only if you're confident you'll pay off the balance before that time. END