If you’ve leveraged both and are looking for a simple way to pay them off while saving some money on interest, debt consolidation might be on your radar.

However, you may wonder whether it’s even possible to roll personal loan and credit card debt into one account together.

Below, we’ll explore the answer to this question and help you determine whether consolidating several types of debt makes sense for your unique situation.

Why consolidate multiple types of debt?

Consolidating personal loan and credit card debt is often a smart move, especially for those with six-figure incomes. Here’s why:

High earners, high complexity

If you’re like most accomplished professionals, you’re juggling a mortgage, student loans, personal loans, and multiple credit cards. You may find it overwhelming to keep track of different payments and due dates while working and caring for your family — especially if you’re part of the sandwich generation.

According to a recent TransUnion Consumer Lending Report, the number of personal loans funded in Q2 2025 climbed to 5.4 million, up 18% year-over-year—the highest growth on record. And prime borrowers, those with credit scores above 721, are driving that growth, representing over 20% of all originations.

High earners, particularly those with college degrees, are also more likely to carry more education debt. The Federal Reserve found that 10% of individuals earning $100,000 or more are behind on student loan payments, signaling that even top earners aren't immune to cash flow challenges.

Consolidation offers a practical way to simplify repayment, reduce interest, and restore liquidity—without dipping into savings or investments.

Regaining financial control

At the end of the day, debt consolidation goes beyond paying off debt. It relieves the mental strain and restores control, giving you the opportunity to focus on other financial goals and initiatives that advance your career and build long-term wealth.

Additionally, with fewer bills and less interest piling up, you might become debt-free sooner while improving your credit score through consistent, on-time payments. Note that a higher credit score can open the doors to more financing opportunities with lower rates and favorable terms.

Can you consolidate a personal loan and credit cards?

If you’re seriously considering the idea of debt consolidation, you might still be wondering whether it’s possible to consolidate personal loan and credit card debt simultaneously. Let’s dive deeper into the answer.

Yes—with the right lender

If you already have a personal loan and want to simplify your financial picture, you can take out a new, larger personal loan to pay off both your existing personal loan balance and multiple high-interest credit card accounts. This creates one new loan with a single monthly payment—often at a lower blended rate. It’s a way to streamline debt while preserving your liquidity and reducing stress.

Not all lenders allow this

Some lenders restrict debt consolidation loans to revolving credit, such as credit cards. Fortunately, others—like BHG Financial—offer flexible loans of up to $250,000² and make it easy to seamlessly consolidate personal loans and credit cards together.

Benefits of consolidating a loan + credit cards together

Rolling your personal loan and credit card balances into a single debt consolidation loan offers numerous benefits, such as:

1. Simplifies your financial picture

Combining several types of debts into one, more manageable monthly payment means you’ll have less bills to keep up with. This helps with budgeting and more importantly, eases mental load. You can even enroll in autopay which processes your payments automatically, so it’s one thing less to do.

2. Lower average interest rate

Credit card APRs have reached record highs. As of mid-2025, the Federal Reserve reports the average credit card rate at 21.39%, with some new offers approaching 28%.

In contrast, the average APR for personal loans is 17%. Plus, high-credit borrowers may qualify for rates as low as 10% (sometimes even lower), cutting your average borrowing cost significantly.

To see if consolidation makes sense, calculate your weighted average APR across all debts. If your existing personal loan and credit cards average 18% to 20%, refinancing them into a single 12% fixed-rate loan can yield real, measurable savings, especially over larger balances.

3. Improves cash flow

Even if you’re a high earner, cash flow constraints are a real possibility due to a large mortgage, student loans, private school tuition, and other costly, ongoing expenses. The good news is debt consolidation may add breathing room in your budget. It’s particularly useful if you’re managing irregular income or tax season obligations and could use some extra cash during times of lower liquidity.

4. Protects liquidity

A debt consolidation loan can also preserve your liquidity because you’ll have the money to meet your needs. You won’t need to dip into your emergency fund or disrupt your investment accounts.

You’ve worked hard to build your wealth. There’s no reason to put it on the line and derail financial goals—such as early retirement or paying for college—when you don’t have to.

What to consider before consolidating 

Before you move ahead and consolidate your personal loan and credit card debt, keep the following in mind.

1. Loan qualifications

To qualify for a larger debt consolidation loan, you’ll likely need a strong credit profile and stable income. You should also consider your debt-to-income ratio, which shows how much of your available credit you’re currently using. In general, the lower your DTI, the higher your chances of approval. However, a few premium lenders (like BHG) will consider prime credit borrowers with significant incomes, even if their DTI is elevated.

2. Loan term tradeoffs

As with anything in life, a debt consolidation loan with extended terms comes with pros and cons. While you’ll enjoy lower monthly payments, you may pay more interest over time. Therefore, consider different scenarios and find a loan structure that fits your unique income cycle.

3. Discipline to avoid “double debt”

Consolidating credit card and personal loan debt can streamline the payoff process and put you on the path to a debt-free lifestyle. However, it won’t prevent you from racking up new balances afterward, which is common among high-earners according to this recent report from the Federal Reserve. It’s crucial to be mindful of your spending habits.

Fortunately, a BHG debt consolidation loan makes this a lot easier through fixed terms—not revolving credit—so you can stay on track.

Real-world example: 

Let’s look at how consolidation can work in practice.

Scenario	Balance	APR	Term	Monthly payment
Credit cards	$30,000	23%	—	$875
Existing personal loan	$20,000	14%	5 years	$465
Total	$50,000	—	—	$1,340

Now, imagine this borrower—a prime borrower earning $210,000 per year—consolidates both balances into a $50,000 BHG personal loan at 12.44% APR over seven years.

Consolidation loan	Balance	APR	Term	Monthly payment
BHG personal loan	$50,000	12.44%	7 years	$894¹

This structure:

Cuts the monthly payment by $458
Reduces total interest costs over time
Creates one predictable due date
Frees up cash flow for savings, taxes, or other expenses

Why BHG personal loans work for professionals 

Specifically designed for high-income professionals, such as physicians, lawyers, and business owners, BHG debt consolidation personal loans offer up $250,000² in funding with fixed interest rates and flexible terms of up to 10^2,3 years.

There’s no collateral required so you don’t have to risk losing your house, car, savings account, or other assets. Plus, you can apply online within minutes and get an approval decision in as little as 24 hours.⁴

Final takeaway: One loan. One payment. One step forward. 

Consolidating both a personal loan and credit cards is not only possible—it can be a savvy financial move. With the right lender and strategy, you can simplify your debt, lower your interest, and improve long-term liquidity.

Ready to see what’s possible through a debt consolidation personal loan? Get your personalized loan offer in just seconds⁴. If you have questions or would like some professional guidance, our U.S.-based concierge team is here to help.

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^† This is not a guaranteed offer of credit and is subject to credit approval.

Not all solutions, loan amounts, rates or terms are available in all states.

¹ BHG monthly payment based on BHG’s minimum available APR for a 7-year term, which is 12.44% as of 12/22/25 and includes an origination fee. Your actual loan size, loan term, and monthly payment amount may vary based on your individual credit profile and other information provided in your loan application. Terms subject to credit approval.

² Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

³ Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,228.

⁴ This is not a guaranteed offer of credit and is subject to credit approval. 

Consumer loans funded by Pinnacle Bank, a Tennessee bank, or County Bank. Equal Housing Lenders.

For California Residents: BHG Financial loans made or arranged pursuant to California Financing Law license - Number 603G493.

If you’re feeling weighed down by credit card debt, you’re not alone. High interest rates can feel like an uphill battle, making it easy to fall behind and tough to catch up.

Understanding how to pay off credit card debt is the first step toward taking control of your debt and reclaiming your financial well-being. Here are a few practical strategies to eliminate credit card debt.

Key considerations

If you have a significant amount of high-interest debt and a good credit score, a debt consolidation loan can be a viable option for paying off credit card debt. For smaller debts, a balance transfer card could help you tackle debt faster.
If not consolidating or using a balance transfer card, set a goal and a budget for repayment; targeting one debt at a time using the snowball or avalanche method can help reduce your balances methodically.
Gradually exceed monthly minimum payments whenever possible to decrease your total interest over time. Even small extra payments can make a big difference in your credit card debt over the long term.

Why is credit card debt hard to pay off?

U.S. credit card balances have surpassed $1.21 trillion, according to the Federal Reserve, driven partially by high APRs.

Credit card debt is difficult to overcome. Even if you don’t make additional purchases, the interest compounds. Only paying the minimum each month means you will carry the debt from month to month, increasing your debt as you accumulate interest charges.

For example, if you’ve amassed $50,000 in credit card debt on a card with a 23% APR, you could pay up to $11,500 per year in interest. Without a plan in place to address the debt proactively, it can become a significant burden.

To start, pay as much as you can toward the debt. Some common ways to do this effectively and consistently include using the debt snowball or debt avalanche method.

What is the debt snowball method?

If you have balances on multiple cards, one of the best strategies to eliminate credit card debt is the snowball method. With the debt snowball method, you pay off the card with the smallest balance first before moving on to the next largest one.

This method is a good choice if you can’t afford to make large monthly payments but want to proactively chip away at your debt. Once you pay off a card, you'll redirect the funds you were using for that payment to your next card balance. You'll continue to do this until you’ve tackled each debt.

Here’s how it looks in action, using the following credit card balances as an example:

Credit card 1: A $5,500 balance and an APR of 16%
Credit card 2: A $2,000 balance and an APR of 20%
Credit card 3: A $10,000 balance and an APR of 23%

Using the snowball method, you’d focus on the second card on this list first because it has the lowest balance ($2,000). Once cleared, you’d move on to the next highest card balance ($5,500) before addressing the third card with a $10,000 balance.

Remember to make minimum payments on all other cards in the meantime; missing any minimum payment can hurt your credit score.

What is the debt avalanche method?

Attacking debt using the debt avalanche method involves paying off the account with the highest interest rate first, regardless of the balance. It can take a while to make progress on —especially if the balance on that card is excessive—but you’ll save money on interest in the long run.

The avalanche method may be a better strategy for you if you can confidently afford a bigger payment and want to pay less in interest while you work to become debt-free.

Here’s how debt avalanche looks in action, using the same credit card balances from above as an example:

Credit card 1: A $5,500 balance and an APR of 16%
Credit card 2: A $2,000 balance and an APR of 20%
Credit card 3: A $10,000 balance and an APR of 23%

Using the avalanche method, you’d tackle the third card first because it has the highest APR (23%). You’d focus on the second card next—APR of 20%—even though it has a lower balance, before moving on to the first card with the lowest APR.

Again, it’s important to focus on making every payment on time to protect your credit score and avoid tacking on additional late fees. It can take a while to knock out the first debt, so patience and consistency is key.

How can debt consolidation help? 

Consolidating personal credit card debt FAQs

Consolidating personal credit card debt can simplify your finances by combining multiple debts into a single monthly payment with more manageable interest rates. In the long run, this can save you from spending more money than you anticipated or previously agreed to on in-terest payments in the future.

Personal debt consolidation can impact your credit score differently depending on the method chosen. For example, applying for a new loan or credit card for consolidation may result in a temporary dip in your credit score due to inquiries, changes in credit utilization, and your his-tory using credit-based financial products. However, making timely payments on the consoli-dated debt can positively affect your credit score by demonstrating responsible financial man-agement.**

Yes, personal debt consolidation can be applied to various types of debt, including personal loans, medical bills, and student loans, in addition to credit card debt. Consolidating multiple debts into a single payment can streamline your repayment process and make it easier to man-age your finances overall.

With highly specialized financing options for accomplished professionals, BHG Financial offers personal loans up to $200K¹ to use as you need them. With repayment terms that last up to 10 years,^1,2you can fully bring your financial plan to action by consolidating your personal debts into a simple and affordable monthly payment to help you achieve financial peace of mind sooner rather than later.

Our payment estimator can help you see your personalized estimate quickly, and our dedicated concierge service team can serve your needs every step of the way.

Debt consolidation involves combining multiple credit card debts into one new account or loan and using it to pay off your existing debts. In many cases, consolidation can save you money because the new product may come with a lower interest rate than the ones attached to your cards. Consolidating debt also simplifies the repayment process because you only need to manage one monthly payment.

Some of the most effective credit card consolidation strategies include using a debt consolidation loan or a balance transfer credit card. The best way to pay off credit card debt will depend on the amount of debt you have, your credit history, and your income level.

If you have a significant amount of high-interest debt and a respectable credit score, a lower-rate personal loan for debt consolidation can be a viable option. Debt consolidation loans, like the ones offered by BHG Financial, have flexible repayment terms1 that help keep your monthly payments low.

Do balance transfers help pay off debt faster?

Transferring your balance from one credit card to another can help you pay your debt faster, as long as the new card comes with a lower rate. If you transfer your balances to a new card with a lower APR, you can allocate a greater portion of your future payments to paying down the principal instead of the interest.

That said, there are a few things to know about the timing of balance transfer credit cards:

You can apply for a balance transfer card in a matter of minutes, but the actual transfer can take anywhere from a few days to several weeks, depending on the credit card company. During that time, you’ll still have to make any payments you owe to your original card company.
Make sure you understand how long the introductory rate lasts, whether there’s a transfer fee, and what the regular rate will be after the promotional period. Introductory rates typically run for a period of six to 18 months, and if you can’t pay off your balance in full, the new rate may be higher than the rate on your old card.

If you worry it may take longer than the intro period to pay off your debt, consider transferring your balance to a debt consolidation loan. BHG offers fixed, affordable payments with terms up to 10 years.^1,2 Plus, dedicated loan specialists provide a concierge loan experience, guiding you through the loan process.

Source: Bankrate, Investopedia - Accessed on 3/14/25
¹ Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

How to pay off credit card debt FAQ

Should I pay off my credit card debt or save first?

It usually makes sense to pay off your debts before saving money, especially if you have high-interest debt. This is because the high interest rates on your accounts will often cost more than the money you can save. For this reason, any money you can afford to save is better allocated to paying off your high-interest debt so that it doesn’t continue to compound.

How can negotiating with creditors reduce my debt?

If card issuers are willing to consider negotiating your credit card debt, you may be able to set up a payment plan, pay off the cards for less than what you owe, or agree to a forbearance. However, there are definite drawbacks to negotiation, as these solutions negatively impact your credit score.

Can I pay off credit card debt without hurting my credit score?

Absolutely! Any moves you make to pay your monthly balances on time can help build a solid payment history and, in turn, improve your credit score. Plus, reducing your credit card balances will lower your credit utilization ratio.

Are debt relief programs worth it?

Debt relief (debt settlement) programs offered by for-profit companies should be viewed as a last resort, and only after you’ve exhausted options for consolidation. Debt relief companies can fast-track getting out of debt, but they often charge high upfront fees, and the process could hurt your credit score. Watch for scams and make sure you understand the potential fees before handing over your finances to a debt relief company.

What if I can't afford minimum payments?

Many creditors are willing to work with you if you cannot afford to pay the monthly minimum payment. Call the company as soon as possible to see what you can work out. If getting a debt consolidation loan isn’t an option for securing a lower minimum payment, you can contact a credit counseling agency, which will help you organize a debt management plan to pay down your debts. Debt relief programs could be considered as a last resort, as they come with drawbacks and can charge exorbitant upfront fees.

How BHG can help you pay off debt faster

At BHG Financial, we believe financing should fit seamlessly into your life and goals. That’s why we offer personal loans tailored to your needs, with amounts up to $200,000¹and flexible terms of up to 10 years.^1,2 Consolidate your high-interest debt with a BHG loan designed to help you move forward confidently.

Plus, you’ll enjoy dedicated, U.S.-based concierge service that works around your schedule—because your time is valuable. Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan estimate in just seconds.

Can You Consolidate a Personal Loan and Credit Card Debt Together?

Why consolidate multiple types of debt?

High earners, high complexity

Regaining financial control

Can you consolidate a personal loan and credit cards?

Yes—with the right lender

Not all lenders allow this

Benefits of consolidating a loan + credit cards together

1. Simplifies your financial picture

2. Lower average interest rate

3. Improves cash flow

4. Protects liquidity

What to consider before consolidating

1. Loan qualifications

2. Loan term tradeoffs

3. Discipline to avoid “double debt”

Real-world example:

Why BHG personal loans work for professionals

Final takeaway: One loan. One payment. One step forward.

Check my rate

Key considerations

Why is credit card debt hard to pay off?

What is the debt snowball method?

What is the debt avalanche method?

How can debt consolidation help?

Consolidating personal credit card debt FAQs

What are the benefits of consolidating personal credit card debt?

How does personal debt consolidation affect your credit score?

Can I consolidate other types of debt besides credit cards?

How BHG Financial can help you consolidate personal credit card debt

Do balance transfers help pay off debt faster?

How to pay off credit card debt FAQ

Should I pay off my credit card debt or save first?

How can negotiating with creditors reduce my debt?

Can I pay off credit card debt without hurting my credit score?

Are debt relief programs worth it?

What if I can't afford minimum payments?

How BHG can help you pay off debt faster

What to consider before consolidating 

Real-world example: 

Why BHG personal loans work for professionals 

Final takeaway: One loan. One payment. One step forward. 

How can debt consolidation help? 