New Delhi, Sept. 7 -- Credit cards can be useful tools for managing short-term expenses. However, carrying a significant outstanding balance can be expensive due to high interest charges.

For borrowers struggling to manage multiple credit card payments, a personal loan may seem like a simple way to consolidate debt. However, whether it is the right choice depends on factors such as the loan's interest rate, repayment tenure, existing liabilities and the borrower's financial discipline.

This makes proper due diligence important. A personal loan can potentially reduce the overall interest burden if its interest rate is lower than the effective cost of revolving credit card debt.

Debt consolidation can also turn multiple outstanding balan...