Credit card bills can sometimes pile up to become a huge burden in our lives. Penalties and interest are charged on this outstanding amount thus adding on to the total balance. This further worsens the financial situation and creates a debt trap. To come out of such a situation, two of the main options that we can opt for are a personal loan and credit card balance transfer. Both of these methods help you clear the outstanding debt on the cards and pay for them in easy EMIs without standing stuck in the debt spiral.
Banks and financial institutions levy interest rates on personal loans and it may not be a viable option to choose in times of financial emergency. It is like paying off a debt by taking on more debt. Credit card balance transfer, on the other hand, saves you from the high interest that you are paying on your current credit card. When you opt for a balance transfer facility, the new bank pays your outstanding balance in full and creates EMIs for the same at a much lower rate of interest.