Most people can barely afford to make their minimum payment right now, which means they’re racking up compound interest that’s just going to keep snowballing if left unchecked.

Fortunately, there’s a way to pay off your credit card bill sooner and avoid drowning in interest: by consolidating your debt with the help of a free service called Credible.

Freedom from debt, faster

With a personal debt consolidation loan, you’ll be able to trade in all of your existing debts for one monthly payment at a lower interest rate.

Credible lets you comparison-shop for the best interest rates available with just a few clicks of your mouse, and in two minutes you’ll see all the lenders willing to help you pay off your debt quickly.

You can borrow up to $100,000 (with no collateral) at interest rates as low as 5.95% APR, on a repayment schedule ranging from 24 to 84 months.

Depending on how much interest you pay on your credit cards, consolidating your debt could lower your monthly payment and save you thousands of dollars over the course of your loan.

For example, let’s say you owe $10,000 on a credit card with an interest rate of 16%. Since your credit is good, you qualify for a 48-month debt consolidation loan at 7% interest.

Here’s what you’ll save:

Account Type Amount of Debt Interest Rate Monthly Payment
Original Debt $10,000 16% $400 (4% minimum)
Consolidated Debt $10,000 7% $239.46

Not only will you spend $160.54 less on your monthly payments, but you’ll also save $3,402.22 in interest over the course of your loan. Plus you’ll be debt-free more than 8 years sooner than if you had continued on making the minimum monthly payment on your current credit card debt.

That’s a huge difference, and the money saved may go on to help you through these difficult times.

A simple way to break the cycle

Things are nerve-wracking enough as it is right now without having to worry about mounting credit card interest.

Taking out a personal debt consolidation loan is a simple way to lower your monthly payment and free yourself from debt sooner.

Even if you're just curious about your options, checking rates on Credible is a smart idea. It’s totally free, it won't hurt your credit score, and it could save you a bundle.

About the Author

Shane Murphy

Shane Murphy

Reporter

Shane is a reporter for MoneyWise. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.