Combine multiple high-interest balances into one simple, fixed monthly payment.
If you're juggling multiple credit card balances at high interest rates, a debt consolidation loan can simplify your finances and potentially save you thousands.
Example: Three cards totaling $7,000 at 22–26% APR → consolidated into a personal loan at 14% APR over 36 months → saves roughly $2,400 in interest and pays off in 3 years instead of 7+.
Personal loan rates are often far below credit card APRs — more of each payment goes toward principal.
Replace multiple due dates with one fixed payment on one clear payoff date.
Paying off revolving debt can reduce credit utilization, potentially improving your score.
A clear payoff timeline and fixed budget provides peace of mind that revolving minimums never can.
| Debt Type | Typical APR | Good Candidate? |
|---|---|---|
| Credit cards | 18–30% | Yes — excellent |
| Store cards | 20–30% | Yes — excellent |
| Medical bills | Varies | Yes |
| Payday loans | 200–400% | Yes — urgent |
| High-APR personal loans | 25%+ | Yes, if rate improves |
| Federal student loans | Variable | No — may lose benefits |
| Mortgage | Variable | No — refinance instead |
A Bread Financial debt consolidation loan replaces multiple high-interest balances with a single fixed-rate installment loan. Instead of making five minimum payments on five different cards — each at 22–28% APR — you make one predictable payment each month at a lower fixed rate.
The math is straightforward: if your combined card balances total $8,000 at an average APR of 24%, you are paying roughly $160/month in interest alone — and minimum payments may keep you in debt for 7+ years. A personal loan at 14% APR over 36 months costs ~$273/month, but you’re paid off in 3 years and save over $3,000 in interest.
List every balance, its current APR, and minimum payment. This is the number your consolidation loan needs to cover. Be thorough — even small balances add up.
Apply through our marketplace with a soft credit pull only. See real consolidation loan rates in minutes — no score impact to compare. Only proceed when you find a rate better than your current average APR.
Once approved and funded, immediately pay off the cards you consolidated. Don’t let them sit with available credit — pay them off and keep them at zero to maximise your credit score improvement.