Six-figure earners are increasingly turning to debt consolidation—not out of desperation, but as a smart strategy to manage cash flow, preserve liquidity, and protect long-term financial goals.

Once seen primarily as a lifeline for those struggling with poor credit or mounting bills, debt consolidation is now being embraced by high-income professionals who want structure and control. With interest rates still elevated, inflation lingering, and the cost of living rising, even top-earning borrowers are seeking solutions for managing their financial commitments without compromising their future.

Let’s explore why this shift is happening and how companies like BHG Financial are uniquely positioned to support these borrowers.

Debt Among High-Income Households: A 2025 Snapshot

Income doesn’t eliminate debt—especially in today’s economy

A six-figure salary doesn’t guarantee financial flexibility or debt-free lifestyles. Even those earning $100,000 or more annually are feeling the squeeze from rising costs, economic shifts, and the pressures of everyday life. Add in higher tax liabilities and the increasing cost of maintaining a professional living, and it’s clear why even high earners can feel cash strapped.

This disconnect between gross income and actual financial flexibility is known as the wealth paradox. And it’s real. A recent BHG Financial survey found that 68% of borrowers earning six figures had $10,000 or less in their checking and savings accounts. This suggests that having a high income doesn't always translate to having a lot of readily available cash.

Key stats that tell the story

Recent data paints a clear picture: debt is touching every income bracket—including those earning six-figures or more.

Growing credit card debt: Total U.S. credit card debt is approaching $1.2 trillion, according to Federal Reserve Bank data from Q1 2025, with high-income households contributing significantly.
Debt impacts retirement savings: Research from the Transamerica Center for Retirement Studies states that 53% of workers of all ages say that debt is interfering with their ability to save for retirement.
Living paycheck to paycheck: A report by PYMNTS analyzing economic data reveals that about 36% of Americans earning $200,000 or more per year are living paycheck to paycheck.
Income deficits are felt by all: A 2016 Federal Reserve survey comparing income and spending found that 8% of higher-income households reported running an income deficit, while 17% only “broke even."
Skyrocketing costs of living: 2025 data from the Ludwig Institute for Shared Economic Prosperity’s True Living Cost report indicates that the cost of affording basic economic security (including housing, food, healthcare, education, transportation, technology, and more) has nearly doubled, rising 99.5% between 2001 and 2023—this is 38% faster than the Consumer Price Index.

Why Six-Figure Earners Are Rethinking Their Debt Strategy

High income ≠ high liquidity

Many high earners operate on tight margins due to significant monthly obligations and inconsistent income streams, making it challenging to manage multiple debts.

Business owners, physicians, consultants, and other professionals often experience irregular cash inflows, substantial operational expenses, or delayed receivables. Combine this with large mortgages, student loans, or high-interest credit cards, and it’s easy to see why liquidity remains a challenge.

Credit card APRs remain at a record highs

Credit card interest rates in 2025 are hovering above 20%, making debt more expensive than ever. Even prime borrowers can’t “out-earn” this kind of interest.

High APRs can quickly erode cash flow, especially if balances are carried over from month to month. For high-income individuals trying to maximize savings and investments, paying thousands in credit card interest makes little sense.

Debt consolidation offers structure and predictability

Debt consolidation provides a practical solution for eliminating high-interest debt, including credit cards and other loans. By combining multiple debts into a single, new loan, borrowers can benefit from a fixed interest rate, a single monthly payment, and often a longer repayment term. This structure and predictability make it much easier to manage finances.

The Appeal of Debt Consolidation for High Earners

Lower interest vs. high APRs

Personal loan rates for prime credit borrowers often fall between 10% and 15%, far lower than the 20%+ interest on many credit cards. While these rates for personal loans are higher than they were a few years ago, they are still competitive, especially when compared to credit card APRs. The difference in rates can result in thousands of dollars saved over the life of the loan.

Free up monthly cash flow without draining savings

Consolidation often allows professionals to reduce their monthly payments without tapping into retirement or emergency funds. Maintaining a strong liquidity cushion is essential for managing unexpected business or life events. Consolidation also helps stabilize finances by creating room in the monthly budget.

Improve credit utilization and score

When you pay off revolving balances, like credit card debt, and replace them with an installment loan, it can positively impact your credit utilization ratio by lowering it. This ratio is a major factor in credit scoring, so improving it can lead to a higher score and reduce financial stress.

Building a payment history also helps increase your credit score, making future borrowing easier.

Why 2025 Is the Tipping Point for High-Income Borrowers 

The economic pressure is real

Inflation, lingering rate hikes, and cost-of-living demands are pushing even top earners to look for smarter tools.

The Federal Reserve’s aggressive rate increases since 2022 have driven borrowing costs higher across the board. As a result, personal loans with fixed rates have jumped more than 2% since 2021, while credit card APRs have climbed nearly six percentage points.

Borrowing costs are elevated—but strategic consolidation still works

A single, fixed-rate loan may cost less over time than juggling multiple debts with compounding interest.

Even in an environment marked by elevated rates, personal loans for debt consolidation can still offer a lower cost option than high-interest credit cards. Shifting from many payments to one streamlined payment also greatly simplifies your financial life.

Rather than a sign of financial struggle, consolidation is now viewed as a proactive liquidity strategy and a way for many to take greater control of their financial future.

Why BHG Financial Is a Top Choice for High-Income Debt Consolidation

Built for professionals—not just average borrowers

BHG Financial understands the unique needs of high-income professionals with complex finances. Our loan products are specifically designed for individuals who may carry significant debt but have the income and prime credit to manage it responsibly.

When evaluating applications, we look at more than just your credit score and consider your overall financial picture. Our concierge-style approach to lending allows borrowers to choose a loan solution tailored to their goals.

High loan amounts + longer terms = unmatched flexibility

We offer loan amounts up to $250,000,¹ with flexible repayment terms of up to 10 years.^1,2 Longer repayment terms allow for lower monthly payments, which can be crucial for managing cash flow, especially for those with substantial debt but strong income.

FYI: In 2025, The Wall Street Journal named BHG Financial the best personal loan for large amounts because we offer one of the largest loan amounts in the industry—up to $250,000.¹ This allows prime borrowers to access their full requested amount or more to consolidate debt and handle major expenses—fulfilling multiple goals at once.

No upfront credit impact to check your rate

With BHG, you can explore loan offers using a soft credit inquiry, meaning there’s no impact on your credit score.³ This makes it easy for high-income borrowers like you to compare options confidently, without committing or risking your credit profile.

When Consolidation Makes the Most Sense in 2025

You’re managing multiple high-interest debts

If you have multiple debts, such as high-interest credit cards or personal loans, consolidating them into a single loan can significantly simplify your payments and potentially reduce your overall interest expense.

You want to free up monthly cash flow before year-end

Consolidating debt can lower your monthly obligations, providing more available cash flow without sacrificing liquidity. This can be especially helpful before the fourth quarter or tax season, when financial demands can increase, or your business must file quarterly and annual fiscal reports and make informed decisions for the year ahead.

You’ve maintained strong credit and want to put it to work

If you have a prime credit score, you're in an excellent position to secure favorable rates and terms on a debt consolidation loan. Using your strong credit can unlock significant financial advantages.

What to Know Before Consolidating as a High-Income Borrower

Focus on the total cost, not just the payment. Balance monthly savings with long-term interest paid. A longer repayment term may lead to lower monthly payments, but it could also mean paying more interest overall.
Watch for fees, penalties, or misleading rate offers. Transparency matters. Be sure to read the fine print and work with a lender that prioritizes trust. BHG personal loans have no prepayment penalties and clearly disclosed terms.
Compare lenders who understand your financial complexity. Generalist lenders often fail to meet the needs of high-income professionals. It's essential to work with a lender like BHG that understands the nuances of your financial situation and can provide tailored solutions.

Final Thoughts: Debt Consolidation Isn’t Just for People in Crisis—It’s for People in Control

The perception of debt consolidation is changing. It's no longer just about "getting out of debt,” it’s about being proactive and strategic with your money. As a result, high earners are redefining what it means to manage money. With ongoing inflation, rising interest rates, and complex financial goals, consolidating your debt brings structure and empowers you to take control of your financial future.

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

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  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.

No application fees, commitment, or impact on personal credit to estimate your payment. 

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.

Why More High Earners Are Turning to Debt Consolidation in 2025

Debt Among High-Income Households: A 2025 Snapshot

Income doesn’t eliminate debt—especially in today’s economy

Key stats that tell the story

Why Six-Figure Earners Are Rethinking Their Debt Strategy

High income ≠ high liquidity

Credit card APRs remain at a record highs

Debt consolidation offers structure and predictability

The Appeal of Debt Consolidation for High Earners

Lower interest vs. high APRs

Free up monthly cash flow without draining savings

Improve credit utilization and score

Why 2025 Is the Tipping Point for High-Income Borrowers

The economic pressure is real

Borrowing costs are elevated—but strategic consolidation still works

Why BHG Financial Is a Top Choice for High-Income Debt Consolidation

Built for professionals—not just average borrowers

High loan amounts + longer terms = unmatched flexibility

No upfront credit impact to check your rate

When Consolidation Makes the Most Sense in 2025

You’re managing multiple high-interest debts

You want to free up monthly cash flow before year-end

You’ve maintained strong credit and want to put it to work

What to Know Before Consolidating as a High-Income Borrower

Final Thoughts: Debt Consolidation Isn’t Just for People in Crisis—It’s for People in Control

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

Why 2025 Is the Tipping Point for High-Income Borrowers 

How can debt consolidation help? 