Consolidate credit card debt into one loan.

A fixed rate can give your debt an end date, but a longer term could mean more interest.

How the loan pays off your cardsWhich costs change the total you payWhen another path may fit better

Direct answer

A debt consolidation loan can consolidate credit card debt into one scheduled payment.

The loan pays off your card balances, then you pay the loan instead. A fixed-rate loan with a fixed term has a set payoff date if you make each payment on time. Fees or a longer term could make it cost more than paying down your cards.

Why people use a debt consolidation loan

Three reasons this strategy exists.

One monthly payment

Replacing several card bills with one loan payment can make due dates easier to track and missed payments less likely.

A planned end date

A fixed-rate loan with a set term shows when the balance should reach zero, as long as payments stay on schedule.

Potentially less interest

A loan with a lower rate than your cards may reduce interest charges, though fees and repayment time affect the result.

Could It Fit Your Needs?

This strategy earns a place on your list when these things are true.

The full cost works

You have compared the loan with paying down your cards and found that its payment and total cost meet your needs.

The payment fits your budget

You can make the same loan payment each month without relying on cards to cover rent, groceries or other bills.

You can stop new charges

You have a plan to avoid rebuilding card balances while you repay the loan, so one debt does not become two.

Think Twice If…

Any one of these can change the decision.

The payment is too high
Missing loan payments can add costs and hurt your credit; a credit counselor can help you assess a debt management plan.
The offer costs more
Fees or a long term may outweigh a lower rate; paying down your cards directly could cost less.
You still need your cards
New charges could leave you with both card bills and a loan; a budget check should come before borrowing.

What to Expect

Four stages, start to finish.

1
List your card debt
Write down each balance, rate and payment so you know what the loan needs to cover.
2
Review loan terms
Check whether the rate and payment are fixed, what fees apply and when the loan ends.
3
Pay off the cards
If you take the loan, use the funds to clear the card balances and confirm each payoff.
4
Repay without new charges
Make the scheduled loan payments and keep card spending within what you can pay off.

One planned payment can come at a cost

Each gain here comes with something you hand back.

You get

You replace several card bills with one loan payment to track each month.

You give up

You may pay an origination fee to turn those balances into one loan.

You get

A fixed-rate, fixed-term loan gives you a payment schedule with a planned end date.

You give up

That schedule leaves less room to reduce your required payment when money gets tight.

You get

A longer term can make the loan payment easier to fit into your monthly budget.

You give up

More months of payments can mean more interest paid before the balance reaches zero.

What to Compare

Five things that move the value of this strategy.

Check	Why it matters
Loan APR versus card rates	A lower loan APR may help, but it does not prove the loan will cost less overall.
Origination fee and loan proceeds	If a fee is taken from the loan funds, check that what remains will cover your card balances.
Required monthly loan payment	The payment must fit your budget without forcing you to put everyday costs back on your cards.
Loan term and payoff date	A longer term can lower each payment while keeping you in debt and paying interest for more time.
Total loan payments versus cards	Compare the full amount you would repay with a realistic plan for paying down your existing cards.

See how this works for your situation.

Your plan checks whether it fits and shows the options that match.

Build my plan

Good to Know

Is a consolidation loan better than a balance transfer?+

Neither is better for everyone. A loan has set payments if its rate and term are fixed. A balance transfer moves debt to another card and may offer a temporary low rate. Check the transfer fee, available credit and rate after the promotion before comparing costs.

When should I consider a debt management plan instead?+

Consider a debt management plan if you need help making payments, not another loan. A credit counselor can review your budget and explain a plan's payments, possible fees and card-use rules. Check those terms before you enroll.

Is an origination fee already included in the APR?+

Certain loan fees are typically reflected in the disclosed APR. Check which charges it includes so you do not count a fee twice when comparing costs. Also check whether a fee reduces the loan funds you receive.

Will applying for a loan affect my credit score?+

It may. Some lenders let you check possible terms with a soft credit check, while a full application may involve a hard check. Ask which kind of check applies before you submit your information.

Will paying off my cards close the accounts?+

No. Paying off a card balance does not close its account or block new charges. Decide how you will use each card before taking a loan, and check whether any account has a fee to keep it open.