I want to consolidate my debts. Is it better to use a debt consolidation loan or a balance transfer credit card?

The type of account you use for debt consolidation depends on your individual circumstances. However, you may want to note that debt consolidation loans generally provide a fixed interest rate that is applied from the time the loan is approved. Balance transfer credit cards, on the other hand, provide a low or 0% introductory interest rate before standard rates are applied, which can give you an interest-free period. The idea with balance transfer credit cards is to focus on paying down your debt in the zero or low interest period so that you don't face any additional charges. Before deciding on the best option for you, consider comparing a range of loan and credit card options to find one that suits your personal circumstances.

Does the promotional rate end if I miss making a repayment?

Not necessarily. Usually if you miss a repayment, you will be charged a late payment fee. Your promotional rate may continue to run until its expiration date, however if you make it a habit of missing payments, your promotional rate may be discontinued. Read the small print on your agreement to make sure you understand the implications of a missed payment.

If I transfer my personal loan to a credit card, would the debt be considered a personal loan debt or a credit card debt?

If you successfully balance transfer your personal loan to a credit card, that debt will be considered as credit card debt.

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Amy Bradney-George

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Amy Bradney-George is an SEO Writer and Subeditor at Are Media and former acting editor for Finder X and a senior writer for credit cards and Finder Green. She has more than 13 years' experience as a journalist and writer, with bylines in publications including The Equity Magazine, The Sydney Morning Herald, ABC News and produce industry website FreshPlaza. Amy has a Bachelor of Arts in Journalism and Drama from Griffith University, and when she’s not putting (virtual) pen to paper, she spends her time as an actress.