INCOME TAX7 Sept 2026
Should you take a personal loan to pay off credit card debt? Experts explain when it makes sense
Credit card debt can quickly become costly. One option is taking a personal loan to consolidate it. This makes sense only if the loan's interest rate is lower than your card's cost, and you repay regularly. Check the fees, prepayment charges, and overall interest first. With a stable income and disciplined spending, this can organise your repayments; without discipline, it just shifts the debt.
Key Statutory Highlights
- A personal loan can lower your overall interest burden if its rate is lower than your credit card's cost.
- Compare processing fees, prepayment penalties, and total interest before shifting debt.
- A longer tenure reduces monthly EMI but increases total interest, so weigh the trade-off.
Actionable Advice for Taxpayers / Founders:Before taking a personal loan, calculate the full cost, including all fees, and compare it with your credit card interest. Also be honest about your spending habits and repayment capacity.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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