Best Personal Loans to Pay Off Credit Card Debt

You opened the credit card statements and did the math. If you stuck with minimum payments, it would take a decade to clear your balances. You need a better plan.

There's a tool built for this moment. A personal loan used to consolidate credit card debt turns several revolving balances into one fixed monthly payment. With a lower interest rate on your loan, a payment that clears your debt in three, five or seven years could be lower than you’re paying for minimums now. 

A lower rate isn’t guaranteed, but you don't have to commit to find out. Most lenders can show you a rate estimate from a soft credit check that won’t hurt your score. Ready to explore your options? Here are some places to start and tips for comparing consolidation loans.

Best personal loans to pay off credit card debt

These popular online lenders cater to a wide range of borrowers:

Choose at least three lenders to get a soft-pull prequalification so you can see what your general rates and terms might be. If the lender you like doesn’t offer risk-free prequalification, start by getting estimates from lenders that do so you know where you stand before applying.

What to look for in a debt consolidation loan

A few factors separate a loan that saves you money from one that doesn't. The interest rate is pivotal, but fees and term length also impact the total cost and impact to your budget.

Think about these points when comparing loan offers:

• The APR, not the interest rate. APR (annual percentage rate) is the total yearly cost of borrowing. It includes the interest plus most lender fees, like origination charges. Two loans with the same interest rate and term length can have very different APRs. Compare your offered APR against the APR for each of your credit cards.
• The term length. A longer term gives you a lower payment, which can be helpful in months when money is tight. A shorter term usually has a lower rate, and paying your loan faster means less interest expense. But you have to be able to afford the higher payment. 
• Origination fees. Personal loan origination fees tend to run from 0% to 12% of the loan amount. When charged, the fee comes out of disbursement. On a $20,000 loan with an 8% fee, that's $1,600 off the top: You receive $18,400 but repay the full $20,000.
• A fixed rate. Most personal loans have fixed interest rates, though variable options exist. A fixed rate means your payment doesn't change for the life of the loan.
• Direct payment to creditors. Some lenders may offer a lower rate if you agree to let them pay off your credit card balances directly instead of sending the loan proceeds to your checking account.
• The 36% APR ceiling. The National Consumer Law Center recommends a 36% APR cap, including all fees, as the benchmark for affordable lending on small loans, and lower for larger loans. Loans above 36% APR are widely considered predatory. If the all-in APR you're offered clears that line, walk away.

One last thing to check is whether the lender charges a prepayment penalty. You could save a good deal of money on interest by paying off your loan early if possible. Some lenders may charge a fee for this, however, so check your terms before making extra payments.

How much could a debt consolidation loan save you?

The Federal Reserve’s consumer credit analysis (August 2026) reports two-year personal loans have an average interest rate of 11.86%, while the average credit card interest rate is 22.15%. Whether consolidation saves you anything depends on the terms you’re offered. Generally, you could save money if:

• The APR (including interest and any loan fees) is lower than you’re paying on your credit cards now.
• You’ll pay off the balance in the same amount of time or sooner than you would by making payments on your cards directly.
• You avoid carrying credit card balances after the cards are paid off.

Let’s look at an example. Say you're carrying $15,000 across three credit cards at an average APR of 22%, and you're paying $345 a month across all three cards. You want to consolidate with a personal loan at 13% APR and a five-year term with a 5% origination fee:

Even after the origination fee, the much lower rate for the personal loan means saving enough to buy a small used car, take an amazing trip, or finally renovate that bathroom. Plus you’d pay off the debt more than two years sooner. This example isn’t uncommon, either, though the exact savings depend on your card APR, your current payment habits, and the loan offer you actually get.

The math could flip in two situations: 

1. When the offered APR is close to what your cards charge. For instance, a personal loan at 20% with a 5% origination fee probably won’t save you money if you’re currently paying a 22% APR on your cards.
2. When the loan term stretches payoff longer than you'd take on the cards. A 7-year loan at 13% could cost more total interest than three focused years of aggressive card payments at 22%. However, you can get around this by paying the loan off early. A three-year personal loan payment would likely be less than $100 more than you’re paying now, while paying it off in three years at 22% would require a significantly higher payment.  

An easy way to explore your options is to use an online debt consolidation calculator. You can plug in your own balances, rates, and fees to get an idea of what your monthly payments and overall savings could be.

Pros and cons of using a personal loan to pay off credit cards

As with most things, this strategy has both pros and cons to consider before you apply.

This last point is both a pro and a con: Consolidation brings your card balances to $0. Which, yes, that’s the point. But it’s also something to watch out for. If you run balances up on those cards again, you could wind up with a consolidation loan and high-interest credit card debt, putting you in a worse position than you were in the first place.

Alternatives to a personal loan for credit card debt

A consolidation loan isn’t the best move for everyone. If the numbers don't work, or you want to compare paths before committing, there are a few other routes worth consideration:

• Debt snowball or avalanche. No new product, just a strategy for prioritizing extra payments. Snowball tackles the smallest balance first for momentum. Avalanche tackles the highest APR first to save the most interest.
• Balance transfer credit card. A credit card with an introductory 0% APR period for transferred balances. Best for smaller balances you can pay before the end of the intro period. Most cards charge a balance transfer fee of 3% to 5%.
• Home equity loan or HELOC. A secured loan or credit line backed by your house. Requires significant home equity. Often much lower rates than an unsecured personal loan, but your home is the collateral. And it takes discipline to pay off your debt faster when home equity loans can have 15-year or longer terms.
• Debt management plan (DMP). A structured repayment plan through a credit counselor. You pay 100% of what you owe, often at a lower interest rate. Typically requires closing your cards.
• Debt settlement. You or a third-party company negotiate with creditors to accept less than you owe and forgive the rest. Usually requires being behind on your payments. Companies charge settlement fees and credit damage can be severe.
• Bankruptcy. A legal option for dealing with unmanageable debt you have no hope to repay. Consult a bankruptcy attorney if you are seriously thinking about this option.

Choosing the right path depends on your situation. Your individual goals, budget, and overall finances should guide your choice.

Bills Action Plan

1. Check the APRs on your credit cards. Add up balances and minimum payments. Use a debt consolidation calculator to find the effective interest rate you're paying today and what numbers could save you money.
2. Prequalify with three lenders using a soft pull. Start with lenders with low or no fees that cater to borrowers in your credit range.
3. Compare offers on APR, origination fee, and overall terms. Balance an affordable monthly payment with a term that saves you money in the long run.

Key Terms

Origination fee: An administrative fee charged by some personal loan lenders. The lender usually takes it off the top of the loan before you get the money. On a $10,000 loan with a 5% fee, you get $9,500 but repay $10,000.

Prequalification: A pre-application stage that lets you get a general idea of whether you’d be approved and the kind of terms you could expect. Most prequalification includes a soft credit check that doesn’t impact your credit score. It’s not a guarantee of approval. You still need to officially apply to get your actual rate and terms.

Annual percentage rate (APR): The yearly cost of borrowing. This typically includes the interest rate plus the origination fee, as well as certain other lender fees.