Summer Was Fun. Your Credit Card Bill? Not So Much.
Let’s be real: you had a blast this summer. You traveled, you went out, you maybe accidentally bought a few things that were “just a little treat.” And now? You're in debt.
If you're staring down multiple balances with sky-high interest rates, you’re not alone. But there’s one tool you might not have considered yet: a debt consolidation loan.
It’s not a scam. It’s not just for older people. And for Gen Z, it might actually be one of the smartest money moves to make before the year ends.
First off, what is a debt consolidation loan?
A debt consolidation loan is a type of personal loan you use to combine multiple debts (like credit cards, Buy Now Pay Later balances, or medical bills) into one single monthly payment - ideally with a lower interest rate.
Instead of paying 3+ bills with different due dates and confusing interest charges, you pay one lender. One balance. One deadline. That’s it.
Why would I want to consolidate my debt?
Let’s break it down. Here’s why a debt consolidation loan could be a good idea:
✅ You’re juggling multiple credit cards
Keeping up with 3–5 cards is confusing & makes it likelier for you get hit with a surprise fee because you missed a payment. Consolidation brings it all into one payment.
✅ Your interest rates are wild
If your cards are sitting at 25% APR (ouch), a consolidation loan with a 14% interest could save you serious money over time.
Let’s say you have a total of $10,000 in debt & you make a minimum monthly payment of $320, without adding any new charges. Here’s how much time & money you would save by consolidating your debt:
Long story short: you’ll end up saving $3,522 purely in interest payments & you’ll get out of debt 16 months faster.
Take a look yourself & see how this could apply to your current situation. Just plug in your current highest APR and the total you owe to see just how impactful this one move could be.
✅ You want to get out of debt faster
With a lower rate and fixed monthly payments, you can create a real timeline to being debt-free - instead of just paying off interest forever.
But when doesn’t it make sense?
Debt consolidation loans aren’t a magic fix - and they don’t work for every situation. Here's when you might want to think twice:
- You have a low credit score and would only qualify for high-interest loans
<div class="frich-tip">Frich tip: Check your credit score for free here!</div>
- You’re already struggling to make minimum payments (this might just delay the problem)
- You plan to keep spending on your credit cards after consolidating (which defeats the purpose)
This tool works best if you’re serious about cleaning up your balances and staying committed to a plan.
How to get a debt consolidation loan (without getting scammed)
Ready to explore your options? Here’s what to do:
1️⃣ Check your credit score
Most legit lenders require a score of at least 580–600. The higher your score, the better your interest rate.
<div class="frich-tip">Frich tip: Check your credit score for free here!</div>
2️⃣ Compare lenders
Use tools like NerdWallet, Credit Karma, or your bank’s website to compare loan offers. Look for:
- Interest rate (APR)
- Loan term (how long you'll be paying)
- Fees (origination, prepayment penalties, etc.)
<div class="frich-tip">Want a shortcut? Here are our team's favorite providers.</div>
3️⃣ Apply + pay off your credit cards
Once approved, you’ll use the loan money to pay off your existing credit card balances - ideally immediately. Don’t let that cash just sit there.
4️⃣ Stick to your new payment plan
Your new loan will have one fixed monthly payment. Set up autopay, budget for it, and resist the urge to start spending on your cards again until you’ve got a grip on your finances.
Final Frich tip: A loan won’t fix habits - but it can reset the playing field
A debt consolidation loan isn’t a miracle. It won’t erase your spending history or teach you how to budget overnight. But it can give you a real, structured way to get out of debt faster and cheaper - especially if you’ve been feeling stuck.
Think of it like this: you’re not failing if you need a reset. You’re being strategic.
TL;DR
- A debt consolidation loan lets you roll multiple debts into one monthly payment - often at a lower interest rate.
- The average APR for a debt consolidation loan is around 11%–20%, but your actual rate depends on your credit score, income, and lender. If your credit card APR is 25%+, even a 16% consolidation loan can save you thousands over time.
- It can help you pay off debt faster, save money, and ditch the chaos of managing multiple cards.
- It’s best for people with decent credit who are ready to stop adding to their balances.
- It’s not a shortcut - but it is a step in the right direction.
<div class="frich-tip">Take control of your debt! Here are our team's favorite providers.</div>
