Drowning in Interest? There's an Alternative

Borrowers who make small, regular payments on high-interest credit cards may notice that their payments don’t seem to make much of a dent in their statement balance. That’s because the interest that accrues on the principal balance each month can sometimes make it feel as if you’re not making progress towards paying down your debt. Fortunately, a credit card debt consolidation loan can be a lower-interest alternative to high-interest credit card debt.

Credit card consolidation loans can help borrowers pay their debt down faster with benefits like focusing on one easy monthly payment  and lower interest rates.

When borrowers use one loan to pay off credit card debt, they essentially transfer the debt from their high-interest credit cards to a single low-interest loan. Because the loan pays off the credit cards, consolidation leaves the borrower with one easy payment to make—directly to the loan provider. While credit card payments can fluctuate in their amount based on minimums due and what your outstanding balance is—personal loans are one fixed amount each month for the duration of their term. 

If a borrower transfers multiple credit card balances to a single personal loan, that personal loan typically has a lower annual percentage rate (APR) than the credit cards (depending on creditworthiness). The interest that accrues each month on a low-interest loan is typically less than the interest from a high-interest credit card. Monthly debt consolidation loan payments could possibly pay down the overall balances faster, since more of the payment pays down the balance. 

Personal loans can be a great low-interest alternative for borrowers who are carrying balances on one or more high-interest credit card accounts. That’s why Fiona makes it quick and easy to get matched with a loan for your full outstanding credit card balance.