A consolidation loan is a refinance, not forgiveness. The balance moves; it does not disappear.
When Chloe would consider it
Consider it when the rate and fees beat the blended cost of the debts, the fixed payment fits the low-income month, and you have a plan for the reopened card limits.
Elena · Steady income + expensive revolving debt
Income$4,950 monthly take-home
Fixed costs$3,120 monthly
Debt$21,800 across three cards
Payment patternNever late; 46% utilization
The honest readElena has the stability to compare total payoff cost. A lower payment is useful only if the new term does not quietly increase total interest.
When Chloe would pause
Pause when the quote is variable, the fee is deducted from proceeds, the term is much longer, or the payment leaves no emergency buffer.
Prequalification may not equal final approval or final pricing. Verify the final disclosure before using proceeds to close other balances.
Three questions before you move
- Compare APR, not rate alone
- Confirm net proceeds after fees
- Decide what happens to paid-off cards
This guide is educational, not individualized financial, legal, tax, or credit advice. Product availability and terms change.