Managing multiple debts isn’t just stressful—it can also be expensive. If you’re carrying both a personal loan and several credit card balances, you might think you have to prioritize one over the other to get back on track.

The good news? You don’t have to choose between refinancing an existing personal loan or consolidating high-interest credit cards. When done strategically, refinancing and consolidating together can simplify your finances, lower your monthly payments, and free up cash flow.

Key takeaway

Refinancing a loan and consolidating credit cards are two distinct actions, but they can be combined into a single, streamlined solution: a personal loan for debt consolidation. For borrowers with strong credit and stable income, bundling both into one loan can make sense—but the timing, loan structure, and lender offerings must all align with your needs.

Why high earners reevaluate debt

Managing complexity, not just cost

High-income professionals often juggle more than one type of debt. Between personal loans, multiple credit cards, and ongoing household expenses, keeping track of it all can be challenging.

For many, the real goal isn’t just lowering interest—it’s having predictable payments and clearer cash flow. Imagine turning five different due dates into one fixed payment you can plan around. That simplicity can be just as valuable as the savings.

Timing is key

Deciding when to act is critical. Life milestones—like welcoming a new child, changing careers, or making a major investment—can all make it the right moment to revisit your debt strategy.

But so can the economy. When the prime rate is high and fluctuating, variable-rate debt like credit cards can feel unstable. Moving to a fixed-rate personal loan brings more certainty and ensures predictability.

Rising APRs: With today’s elevated and unpredictable prime rate, carrying variable-rate credit card balances is riskier than ever.
Life transitions: Buying a home or sending a child to college can justify restructuring debt to free up liquidity.
Market windows: If personal loan rates dip or your credit profile has improved since your last loan, refinancing and consolidating at the same time may make sense.

What does it mean to refinance and consolidate together?

Refinancing a personal loan

Refinancing a loan means replacing your current loan with a new one—ideally at a lower rate or longer term. Why would you do this?

It frees up monthly cash flow by reducing your required payment.
It lessens total interest paid over the life of the loan if you secure a lower rate and keep the term the same or shorter.

Consolidating credit cards

Consolidating credit cards means rolling multiple high-interest balances into one fixed-rate personal loan. This move:

Simplifies payments by giving you only one bill to track.
May lower monthly debt payments, particularly if your current credit card APRs are very high (which is increasingly common).

Doing both in one move

When you refinance and consolidate at the same time, you can use the new, larger personal loan to pay off multiple high-interest credit cards and any existing personal loans.

This strategy allows you to reset your entire debt picture in one go, combining multiple debts into a single, predictable payment.

FYI:
This approach works best when you qualify for a lender offering large loan amounts. For example, BHG Financial provides personal loans for debt consolidation up to $250,000,¹ allowing qualified borrowers to consolidate substantial debts and still have funds left for other goals—whether that’s a major purchase or a financial cushion.

Pros of doing both at once

1. Simplified debt management

Instead of tracking multiple loans and cards, you’ll have just one fixed payment. This makes budgeting easier, reduces the likelihood of missed payments, and allows you to automate repayments.

2. Potential to reduce interest

Credit card APRs average around 24%. However, a well-qualified borrower may be able to lock in a fixed-rate personal loan at 10% to 15%. Refinancing your existing loan while consolidating credit card balances could result in significant monthly savings.

3. Liquidity and breathing room

Extending the term of your new loan may lower your monthly payment—even if the interest rate stays the same. That breathing room can make a big difference when handling tax season, capitalizing on an investment opportunity, or preparing for emergencies.

The image below shows how extending your loan terms can reduce payments:

Advertised rates are subject to change without notice.

* BHG monthly payment based on BHG’s minimum available APR for a 10-year term, which is 14.63% as of 10/24/2025 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.

FYI:
BHG personal loans come with industry-leading repayment timelines—choose terms up to 10 years^1,2 and unlock affordable fixed monthly payments.

4. One credit inquiry, one application

With the right lender, you won’t need separate applications. You can refinance your personal loan and consolidate credit cards in one step, which helps reduce paperwork. Plus, there is no impact on your credit for estimating a payment.⁴

Potential cons and cautions 

1. Extending the debt timeline

A lower monthly payment often comes with a longer repayment term—but that’s not always a bad thing. The key is finding the right balance between immediate relief and long-term cost. Extending the term can create valuable breathing room for other financial goals, especially if the interest rate improves.

When consolidating, assess your budget to see what’s sustainable month to month, then aim for a repayment plan that reduces pressure now without adding unnecessary interest later.

2. Risk of “reloading” credit cards

Consolidation works best when paired with a disciplined repayment plan. After using a personal loan to pay off your credit card balances, you'll have accounts with a zero balance. If you don’t address the habits behind the original credit card debt, those balances may build back up, leaving you with the new personal loan and new high-interest credit card debt. 

3. Qualification matters

Lenders reserve the best rates for borrowers with strong credit—usually a FICO score of 720 or higher. If your score has dipped or your income doesn’t support a larger loan, you may still qualify, but the terms may not be as favorable.

When it’s a smart move 

Scenario	Recommendation
Strong credit score (700+) and solid income	Consolidation may be a smart option for securing a low, fixed APR
High monthly payments straining liquidity	Consolidation will create predictable payments for better financial planning
Planning for additional large expenses	Consolidation may free up cash flow
Poor credit or unstable income	Proceed cautiously; compare APR and terms first
Already close to paying off personal loan	Better to finish current loan, then consolidate separately

Why BHG personal loans are ideal for this strategy 

As a high-earning professional with a strong credit profile, you require a partner who understands the complexity of your finances and offers solutions tailored to your success. BHG Financial specializes in large, flexible, unsecured financing, which is perfectly suited for refinancing and consolidation.

Largest unsecured loans: We offer loan amounts up to $250,000¹, easily covering a sizable existing loan and multiple credit card balances.
Predictable payments: You get fixed interest rates for the life of the loan—no surprises.
Flexible terms: Repayment terms are available up to 10 years,^1,2 allowing you to choose a monthly payment that optimizes your cash flow.
Designed for success: Our loans are tailored to professionals with strong credit profiles and proven income.
Speed and efficiency: We offer fast approvals—in as little as 24 hours³—so you can take back control quickly.

Example:
A physician carrying a $50,000 personal loan at 12% and $25,000 in credit card debt at 24% could roll both into one BHG personal loan at a lower blended rate and longer term. The result: one predictable monthly payment, potentially hundreds in monthly savings, and freed-up cash for other priorities.

	Balance	APR	Monthly payment	Interest paid over 7 years¹
High-interest credit card(s)	$75,000	23.99%	$1,850	$80,418
	$75,000	12.44%	$1,342	$37,700
			Estimated savings on credit card interest with BHG	$42,718*

Advertised rates are subject to change without notice.  

*Potential savings based off comparing repayment of a $75,000 balance over 7 years on both a credit card with a minimum monthly payment of $1,850 and APR of 23.99% (average consumer credit card APR per Investopedia as of 8/05/25), with the assumption no additional draws on the line are made during this time; and a BHG Personal Loan with a minimum monthly payment of $1,342 and minimum available APR for a 7-year term, which is 12.44% as of 10/24/2025 and includes an origination fee.

Final takeaway: Bundling may boost efficiency

Refinancing and consolidating at the same time isn’t for everyone, but for high earners with strong credit, it can be a powerful strategy. If your goal is to make fewer payments, get lower rates, and have more control over your financial future, bundling could be the smartest next step.

And with lenders like BHG Financial specializing in large, unsecured fixed-rate personal loans tailored to professionals, you don’t have to navigate the process alone.

Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan offer in just seconds.³

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

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.

² 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.

³  This is not a guaranteed offer of credit and is subject to credit approval. 

⁴ There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.

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.

Is It Smart to Refinance Your Personal Loan and Consolidate Credit Cards at the Same Time?

Key takeaway

Why high earners reevaluate debt

Managing complexity, not just cost

Timing is key

What does it mean to refinance and consolidate together?

Refinancing a personal loan

Consolidating credit cards

Doing both in one move

Pros of doing both at once

1. Simplified debt management

2. Potential to reduce interest

3. Liquidity and breathing room

4. One credit inquiry, one application

Potential cons and cautions

1. Extending the debt timeline

2. Risk of “reloading” credit cards

3. Qualification matters

When it’s a smart move

Why BHG personal loans are ideal for this strategy

Final takeaway: Bundling may boost efficiency

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

Potential cons and cautions 

When it’s a smart move 

Why BHG personal loans are ideal for this strategy 

How can debt consolidation help? 