In recent years, balance transfers have become a less realistic option.
New legislation has caused creditors to require higher minimum payments (so that consumers pay off debts in a timely fashion).
In the best-case scenario, the consumer would open the card during a promotion at a “teaser rate.” This rate is low, sometimes zero percent, and lasts only for a promotional period, say 12 months.
The goal is then to pay down as much as possible before the period ends and the rate jumps to a much higher level.
Taking out a personal loan to consolidate your debt lets you put all of your debt in one place as you work to pay off the loan, often at lower rates.