This article explores debt consolidation loans as a potential solution for managing high credit card interest rates in 2025. It discusses the benefits of consolidating debt, such as streamlining payments and potentially securing a lower interest rate. However, it also emphasizes the importance of a good credit score for qualification and cautions that debt consolidation loans may not address underlying spending issues.
While inflation has cooled significantly compared to recent highs, many Americans are still burdened by high consumer goods costs caused by years of high inflation, especially at gas stations and grocery stores. Housing, insurance and transportation costs have also increased over the past year, adding to the financial pressure. As a result, many people are turning to high-rate credit cards to get by.
The average credit card interest rate is currently sitting above 23%, so many cardholders are seeing their balances grow at a faster rate than they can pay them off. If you're looking for ways to lower your interest rate and pay down credit card debt in 2025, there are two options you may want to consider: debt consolidation loans and debt consolidation programs. To understand more about how these options work and how borrowers can choose which is best, we asked experts to weigh in. Speak with a debt relief expert about your options today.Why a debt consolidation loan may be better in 2025When you take out a debt consolidation loan, the goal is to roll multiple credit card balances into one loan, ideally at a lower rate. This streamlines all of your debts into one monthly payment, and if you're able to secure a lower interest rate, it offers the opportunity to pay down the balance faster, and with less interest, over the life of the loan. 'A debt consolidation loan is ideal for someone whose debts are annoying but not scary,' says Howard Dvorkin, a personal finance expert and chairman of Debt.com. 'For instance, if you earn a good income but run up your credit cards during the holidays, a debt consolidation loan can save you a lot on interest. Instead of paying 20% on several credit cards, you take out a personal loan at 10%.'However, you'll need a good credit score to qualify for a low interest rate. And if your credit card debt is a result of excessive spending, a debt consolidation loan won't do anything to fix the underlying issu
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