The average American has $6,595 in credit card debt, according to May 2026 data from Capital One.
Carrying that debt can cost a consumer more than $1,500 in interest over a two-year payoff period, based on the Federal Reserve’s estimated average credit card rate.
Those extra monthly interest payments can be make-or-break for the 40 percent of American consumers who are living paycheck-to-paycheck, according to a December survey from payments data, news and insight platform PYMNTS.
Using a personal loan to consolidate that credit card debt can drastically reduce monthly interest payments, freeing up money for consumers to save, add to an emergency fund or direct toward other existing debt.
Aside from interest rates, personal loans offer…