Studies reveal that debt consolidation is the top reason why people take out personal loans.
Online lending marketplace LendingTree reported that 54% of its users seek personal loans to pay down debt, including close to 41% for debt consolidation and around 14% for refinancing credit card debt. According to a September 2023 study by Forbes Advisor, 47% of debt consolidators borrowed between $10,000 and $20,000.
Below, CNBC Select explains the difference between debt consolidation and credit card refinancing, how each works and how a personal loan could save you money.
Credit card debt consolidation and refinancing
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Difference between debt consolidation and credit card refinancing
The two biggest reasons…