Consolidating Debt with a Personal Loan

Paying off credit cards with a low-rate personal loan is a popular debt consolidation strategy.

Young couple reviewing the benefits of consolidating debt with a personal loan via their laptop.

A personal loan with a low, fixed interest rate could be the solution for an unwieldy set of credit card balances. It’s also a way to tackle other types of debt such as variable-rate student loans.

Realizing this savings involves consolidating your debt. This means moving it to a financial product with a lower interest rate. The money you receive from a personal loan can be used to pay off the balances of credit cards and other high-interest loans.

Personal loans can be used for a wide range of expenses, from medical bills to adoption fees. In other words, they’re also a good way to prevent a substantial credit card balance. If your personal loan’s interest rate is lower than your credit card’s, you’re likely to save money. And if its rate is fixed, you can calculate your monthly payments and work them into your budget.

To determine which debt consolidation method best fits your life, consider meeting with one of UW Credit Union’s financial specialists or scheduling a free credit consultation.

Related Articles

Woman uses laptop at her desk for finances.

Personal Loans 101: Borrowing Basics

 Here are the basics of personal loans, and how they can help you get ahead.

Read More
Couple sits on a couch looking at finances on a tablet.

Why Personal Loans Are a Good Choice

 Here’s a look at the advantages of personal loans.

Read More
Woman discovering the difference between a HELOC vs Home Equity Loan vs a Personal Loan with the help of UW Credit Union.

HELOC, Home Equity Loan or Personal Loan

What's the difference? When looking at lending options, make sure you choose the best one for your needs, lifestyle and budget.

Read More