Carrying balances on multiple credit cards at 18–29% APR can cost thousands in interest annually. Debt consolidation replaces those balances with a single personal loan—ideally at a lower fixed rate—so you make one payment and know your payoff date.
When consolidation makes sense
- Your new loan APR is lower than your weighted average credit card rate
- You will not run up new credit card balances after consolidating
- The monthly payment fits your budget without extending hardship
- Total interest paid over the loan term is less than minimum payments on cards
Alternatives we discuss
Balance transfer cards (0% intro APR), home equity loans (secured, lower rates), debt management plans through nonprofit credit counseling, and structured payoff strategies (avalanche vs. snowball) without new borrowing.
Our process
We list all debts, calculate weighted APR, model consolidation scenarios, and recommend the approach that saves the most money while fitting your discipline and timeline.
Request Consultation