Debt ConsolidationHow to Tackle Credit Card DebtThe average American household carries over $6,741 in credit card balance from month to month. With high interest rates and penalties, credit card debt can create a heavy burden that might feel inescapable. If you’re carrying credit card debt, most of your monthly payments are going to paying off interest instead of chipping away at the principal. Refinancing with a personal loan can get you a lower interest rate, so the debt will increase slower, allowing you to pay off more of the principal.