If you carry a credit card balance, you are paying the most expensive mainstream debt in India — often 36–48% a year. A personal loan at 12–18% is almost always cheaper for consolidating that balance, as long as you stop using the card for new debt.
Quick comparison
- Credit card: great if you pay in full every month (0% interest). Terrible if you revolve.
- Personal loan: fixed EMI, lower rate, useful for genuine emergencies or debt consolidation.
- Never take either to invest in markets or fund lifestyle you cannot afford.
The consolidation playbook
- 1.Stop new card spends (or freeze the card).
- 2.Take a personal loan only for the outstanding balance.
- 3.Pay off the card in full immediately.
- 4.Close or keep one card for credit history — pay full bill always.