Should You Consider a
Personal Loan to Pay Off Debt?

The new year is the perfect time to set resolutions around your personal finances. If reducing higher-interest credit card debt is one of your goals, know this: There are smart (and proven) strategies for managing and reducing debt that you could implement today. These strategies may not only provide peace of mind, but could also help you realize that a brighter financial future is entirely possible.

One such strategy? Applying for a personal loan.¹ With a Discover personal loan, up to $40,000 can be sent right to your bank account or to many of your creditors. The money can be sent as early as the next business day after you accept the terms of your loan.²

Is this debt reduction strategy right for you? Here are some potential benefits of using a personal loan to consolidate your debt.

Know Your Rate

Say you have multiple credit cards with revolving balances. Often people don’t even know how much they pay every month, since variable interest on those cards keeps ticking up (and on average, rates are over 20%).³

Before you apply for a Discover personal loan, you can see what your loan rate and set regular monthly payment could be with no impact to your credit score.⁴ This is a definite plus compared to many other debt-reducing solutions.

Stay Flexible

Debt consolidation is one of the main reasons to apply for a personal loan, but there are other factors to consider. If you suddenly face a surprise expense or a last-minute major purchase, a personal loan could provide critical help in these periods of need.

Make Just One Monthly Payment

Anyone can imagine the hassle and stress of juggling different balances across different credit cards. Varying payments, due dates, and lenders can make debt feel like a struggle to manage.

By consolidating debt with a personal loan, it could be much easier to stay on top of what you owe with one payment amount, a fixed rate, and a single lender.

Avoid Unplanned Fees

There is nothing consumers hate more than pesky fees, and for good reason. With a Discover personal loan you won’t be hit with unplanned charges, which can quickly add up and catch you by surprise. In fact, there are no fees as long as you pay on time.

Get a Quick Response

One of the bothersome parts of applying for credit is the waiting. This in-between time can lead to feelings of uncertainty and stress—all the while, your debt balances continue to build on top of one another.

But with a Discover® personal loan the process is fast and easy. Most people get a decision the same day. Then, your funds can be sent as soon as the next business day after your acceptance.⁷

Choose the Term

With help from Discover’s U.S.-based loan specialists, you can design the personal loan that works best for you. Flexible repayment terms mean you can decide which loan length makes the most sense.⁸

So, is a personal loan right for you? Let’s say you have between $5,000-$40,000 in credit card debt. Also, maybe your low introductory interest rates have expired and your monthly payments are higher than expected as the variable rates keep rising. Or you unsuccessfully tried to negotiate a payment schedule with your creditors.

In cases like this—or if you have trouble keeping track of all the due dates for your credit cards or have outstanding medical bills (for you or your pet)—debt consolidation through a personal loan could help you pay that debt off sooner, bringing you one step closer to a brighter financial future.

To find out just how much you could stand to gain, use Discover® Personal Loans’ handy debt consolidation calculator. Enter a few simple details like your credit score and the details of your various debt balances, and it will tell you how much money you might be able to save by consolidating.

Ready to take the first step toward managing your debt? Join over 1 million customers who consolidated debt with Discover Personal Loans. You, too, could ultimately achieve peace of mind, pay off high-interest balances, and start saving sooner.