Year-End Money Check: Should You Consolidate Credit Cards and Loans Now?

A year-end review has clear advantages. Here’s why this time of year matters:

• Tax planning opportunities: Reviewing your finances before December 31 helps you maximize deductions, reduce taxable income, and make smarter retirement contributions before it’s time to file in late January.
• Holiday spending season: Americans spend an average of $900+ during the holidays, per the National Retail Federation. If you’re feeling financially stretched, you might consider consolidation to help restructure your budget before travel, gifts, and year-end celebrations add to your debt.
• Fresh start for 2026: An end-of-year audit enables you to enter the new year with fewer financial loose ends and more confidence in your budget. It’s easier to start strong when you’ve already addressed high-interest debt.

High earners aren’t immune to financial strain. High interest rates and elevated living costs are likely here to stay, prompting many high earners to explore consolidation as a way to stay ahead of the curve.

The reality is that inflation, which is largely beyond your control, can make it more difficult to maintain or improve your lifestyle. If rising costs of groceries, childcare, homeownership, medical bills, and just about everything in between are impacting your spending, now may be the ideal time to restructure your budget.

High APRs and inflation make carrying debt risky

The average credit card APR was 21.16% in May 2025, one of the highest on record, according to recent data from the Federal Reserve. Experts predict rates will remain elevated well into 2026, which means carrying balances month to month could remain costly.

Lenders like BHG offer professional-grade solutions 

While many financial institutions offer debt consolidation solutions, it’s essential to work with a lender that provides competitive interest rates, flexible repayment options, and a tailored borrowing experience.

BHG Financial’s debt consolidation personal loans are designed for prime-credit professionals with complex finances. Loan amounts are as high as $250,000¹ and offer industry-leading extended repayment terms of up to 10 years.^1,2 Plus, you don’t have to put up collateral to secure the funds.

Generally, paying down high-interest debt improves your credit profile for future borrowing and investment opportunities. But if you’re unsure whether now is the time to consolidate, here are a few signs it might be a smart move:

• You’re juggling multiple balances and due dates: Consolidating debt simplifies your financial life into one predictable payment.
• Your interest rates are creeping up with variable debt: Consolidating into a fixed-rate loan shields you from future hikes in 2026.
• You have great credit, but your cash flow feels tight: A lower monthly payment can give you breathing room for year-end costs as well as new-year goals.

Debt consolidation is usually best if you meet the following criteria:

• You have good to excellent credit (670+)
• You’re carrying $20K+ in credit card or personal loan debt
• Your minimum payments are starting to eat into savings

Create a cash flow cushion 

High-interest credit cards and multiple loans can make monthly budgeting unpredictable. By consolidating, you replace fluctuating minimums with one fixed payment. This allows you to cover essential year-end expenses, like holiday spending or professional obligations, without incurring additional debt.

To identify potential cash flow gaps before December, track your consolidated loan payment alongside recurring expenses, such as your mortgage, utilities, and childcare. Then allocate extra funds toward savings or short-term goals.

Protect against rising interest rates

Variable-rate credit cards can spike unexpectedly, increasing your debt burden during the costly holiday season. A fixed-rate consolidation loan locks in your interest rate, shielding you from unexpected hikes.

After consolidating, set up automatic payments for your new loan and review your budget to ensure you're on track. Consider creating a short-term plan to address any remaining high-interest balances and avoid accumulating new debt.

Position yourself for a stronger financial start in 2026

While consolidation can help save money, it can also help you prioritize your long-term financial health:

• Paying down debt more efficiently can improve your credit utilization ratio, which may boost your credit score.
• Simplified payments reduce mental load and financial stress, making it easier to focus on retirement contributions, investment planning, or other 2026 financial goals.
• Freed-up cash flow can allow for pre-tax contributions to retirement accounts or other tax-advantaged opportunities before December 31.

Not all debt consolidation loans are created equally. The BHG Financial personal loan is specifically designed for high-earning professionals:

• Large loan amounts and long terms: Borrow up to $250,000¹ with repayment terms as long as 10 years^1,2—no collateral required.
• Tailored experience: Work directly with a U.S.-based loan specialist who understands professional cash flow challenges.
• Credit-safe application: Check your rate with no impact on your credit.³

Year-end is the natural checkpoint for reviewing your finances. Even in an elevated rate environment, now is the ideal time to consolidate and streamline. By taking action before December 31, you’ll set yourself up with less stress, more stability, and a stronger foundation for 2026.

You can check your rate today with no impact to your credit³—and head into the new year with confidence.