Lower the interest you pay on your debt.
See ways to lower your interest rate and find a payment that fits your budget.
High-interest debt can keep more of your payment going toward interest instead of your balance.
A lower rate can reduce that cost and may lower your monthly payment, as long as the new term does not increase what you pay overall.
What high interest changes
A cheaper rate helps only if the interest you save outweighs the cost of switching.
More time to repay can ease this month's bill but leave you paying more overall.
A balance transfer applies to eligible card debt; counseling can help you review debt without taking new credit.
What you could realistically do next
Use a personal loan to pay off high-interest debt and make one fixed payment each month. A lower rate or longer term could lower your payment.
What to check: The interest rate, fees, monthly payment, time to pay it off, and total amount paid. A longer term can cost more overall.
Best if: Your current payments are too high, and the new loan offers a manageable payment at a better or equal total cost.
Combining debts into one payment may help if a new loan costs less after fees. It does not reduce what you owe.
What to check: The new rate, fees, monthly payment and total paid with keeping your current debts.
Best if: You can get a lower-cost loan and keep up with its payments.
A temporary lower rate may give you room to pay down card debt faster. The benefit depends on the fee and what remains when the offer ends.
What to check: The transfer fee, promotional period, monthly payment needed to fully pay the balance, and interest rate after the promotional period ends.
Best if: Your debt is on cards and you can pay down the transferred balance before the promotional rate ends.
Check whether a lower rate will help
- 1Confirm what you owe
List each balance, rate, minimum payment and any fees on the debts you want to address.
- 2Check the new payment
Confirm that the full monthly payment fits your budget without relying on more borrowing.
- 3Compare the full cost
Confirm how much you would pay in total, including fees and interest through the last payment.
- 4Check when terms change
Confirm when any promotional rate ends and how much debt could still be left then.
Passing these checks does not guarantee approval, a lower rate or savings.
Three numbers to compare
Compare what you must pay each month now with what each path would require.
Add interest and fees through payoff; a smaller bill can still cost more.
Check how long you would pay and whether a temporary rate ends before the balance is gone.
A smaller payment can mean more cost or more limits
A consolidation loan could make monthly payments easier to manage at a lower rate.
Fees or extra months of payments could leave you paying more in total.
A balance transfer could cut interest on eligible card debt for a limited time.
A transfer fee adds cost, and the rate may rise before you pay it off.
Counseling could help you build a budget and seek more manageable payments.
A debt management plan may charge fees, restrict card use and need creditor approval.
Good to know
Can I ask my current creditor for a lower rate?+
Yes, you can ask before applying for new credit. Explain what you can afford and ask whether a lower rate or payment help is available. Get any change in writing, and check whether it affects your account or adds fees.
Does refinancing high-interest debt always save money?+
No. A lower rate may help, but a longer repayment term or new fees can raise your total cost. Compare what you would pay until the debt is gone under both paths, not just the next monthly bill.
What if I cannot qualify for a cheaper rate?+
Make a payment plan for the debt you have instead of sending more applications. If that plan does not fit your budget, credit counseling can help you review your options. Ask about fees and whether your creditors would take part in a debt management plan.
Will credit counseling affect my credit?+
Talking to a counselor does not by itself change your credit score. Joining a debt management plan may affect your accounts or how creditors report them. Ask the counselor what would happen to each account before you enroll.
Should I keep paying while I compare options?+
Keep making payments if you can. Missing payments while you shop for another path can add fees and hurt your credit. If a payment is out of reach, contact the creditor promptly and ask what help is available.