Cons to getting a debt consolidation loan?
I am debating on getting a debt consolidation loan to pay off 8k in credit card debt. I have 9 CCs with a total debt of 8k. I was pre-approved for a debt consolidation loan through Lending Club with a 26.6% APR. My monthly payments would be $272 over 48 months, but I plan on paying it off early. There is no penalty for paying the loan off early, and paying $272 is a heck of a lot better than the $480 I am paying across all CCs in the form of minimum monthly payments. I see no downsides to getting the loan, but maybe there's something I’m missing. What would be the cons in this scenario? My current CCs have such high APRs that I feel like I'll never get them paid off. One of my cards is also increasing their APR from 27% to 36.6% and adding a $99 annual fee which was not included before. I feel like I’m giving away my entire paycheck and I just want to breathe.
Side note, has anyone work with Lending Club for debt consolidation? What was your experience like? Any advice helps!