What are the benefits of consolidating debt through a bank loan?
Stability, for one. Even though the interest rate on a bank loan might be higher than promotional APRs from a credit card company, receiving a fixed-rate bank loan for debt consolidation means that, provided you make payments on time, you'll be paying the same interest rate for the life of the loan. Remember replacing short-term high rate debt with long-term lower rate debt may result in you paying the same amount in finance charges over the term of the long-term lower rate debt. Borrowing from your bank also strengthens your relationship; if you need another loan and you have a good track record, the bank will be more willing to help.