What You Need to Know
About Revolving Debt

Americans like you pay billions in credit card interest each year. In fact, in 2024, credit card balances in the U.S. increased by $24 billion to hit $1.17 trillion,¹ leaving many Americans eagerly searching for a way out from their debt obligations and ballooning interest payments.

It’s no surprise that successfully managing your debt can feel like a full-time job. From variable interest rates to changing monthly payments, it can be a challenge to track your debt from credit cards and other sources. You may wonder exactly how much you owe and when you will be able to pay it all off.

But there are options that could allow you to pay off your debt faster while saving money on interest. Begin by learning how revolving debt works, including a few of the most common types. From there, weigh which solutions could help you stress less and put you on a path to financial growth.

What Is Revolving Debt?

Revolving debt, also known as revolving credit, is a popular way to borrow money. Basically, you withdraw money from a credit line and pay it back over time. Credit cards are the most common form of revolving debt.

Credit cards fall into the revolving category of debt because you only need to pay the minimum payment every month. While this may seem like a good thing when you’re struggling to make ends meet, both credit cards and other lines of credit tend to come with variable interest rates that may be adjusted—and the rates for credit cards tend to be on the higher end. The average credit card interest rate is over 24% as of January 2025.²

The tricky—and frustrating—part about revolving debt is that it can be difficult to pay off your balance in full. Making just the minimum payment may actually increase the amount you owe, because the interest continues to accrue. On top of that, late payments may cause your interest rate to jump, making your revolving debt even more costly.

If you’re feeling stuck on the hamster wheel of revolving debt payments, you may want to consider consolidating that debt with the help of a personal loan.³ With a Discover personal loan, for instance, up to $40,000 can be sent by the next business day if you’re approved for and accept the loan.⁴ What’s more, with Discover® Personal Loans you choose where the money goes. You can send money straight to many creditors or to your bank account. Imagine spending less time stressing about what you owe and more time focusing on the things that matter most in life!⁵ Finding out if a personal loan is a good option for you could be a big first step toward a brighter financial future.

In short, a personal loan could help you eliminate revolving debt so you can start saving sooner. And nothing feels better than having a plan in place to manage debt so you can get back to focusing on doing the things you love.