How to Refinance Your Debt at a Lower Rate and Save

by Erika Torres

The average American household has over $101,915 in debt. With most of this debt on Credit Cards with high-interest rates, many consumers find themselves in financial unrest. Credit cards have long been the savior of consumers when they need to make a purchase beyond the amount saved in their bank accounts. The drawback is that for millions of consumers, minimum payments on a credit card often leave them paying back thousands in extra interest.

A personal loan can open a world of financial possibilities to someone in need and yet many people are unaware and do not take advantage of them. Consolidating debt from a high-rate credit card to a lower-rate personal loan would save you hundreds or even thousands of dollars.

You can get a personal loan entirely online through online lenders like Prosper, Avant, and SoFi without needing to step into a bank branch. By offering a fast and easy process and lower rates than banks, these online lenders have won the hearts of many consumers and are now lending billions of dollars a year.

What can you do with your personal loan?

The best answer to that question is “Anything you want.” There are no restrictions on how to use a personal loan, but here are some of the ways that consumers have been using them.

  1. Debt Consolidation and Credit Card Refinancing

This is by far the most popular option for getting a personal loan, and something you should seriously consider if you are struggling with debt. The average travel credit card APR currently sits at 20.91%, so it’s no wonder that the majority of personal loans go toward consolidating credit card and other debt into one low-rate loan. The average personal loan interest rate sits at just about 11%, so it is no wonder why many people choose to consolidate with a loan.

Even if you only look to consolidate part of your credit card debt into a 3-year loan, you can still save hundreds of dollars with a much lower interest rate.

  1. Big life expenses

Many consumers use a personal loan to invest in and improve their home, for things like a kitchen or bathroom remodel. They can also be used for large life events such as weddings or a new baby.

  1. Unexpected bills

Sometimes, an unexpected death or medical emergency can prove financially devastating. A personal loan can be the saving grace if you’re waiting on an insurance payment or another influx of cash since most providers have no prepayment penalties, so you can pay back the loan at any time.

How To Find the Right Provider – Even Financial

There are now hundreds of online lenders who are dedicated to helping consumers get personal loans. In order to save you time and money, we’ve partnered with Even Financial to help you compare interest rates and terms from the top providers to find the best option for you.

You can use Even’s tool below to see the starting interest rates for each loan provider based on the loan amount, credit score, and location. If you want to know the exact rates from each loan provider and see who will pre-approve you for a loan at the lowest rate, click on the “Advanced Search” button and fill in your information to instantly get your personalized results. This won’t affect your credit score!

Try it now and see your options!

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Temmy February 3, 2016 - 3:11 am

Your blog is great. yesterday I went to Sofi website and they offered me 6% better deal then I already had on several loans If I round up them all and change them for bigger one. Thanks for sharing.

Kelly February 2, 2016 - 6:31 pm

Even’s tool is very helpful. It provides me an almost overall amount I may need to deal with. And, what I like about the tool is that it has options I can choose from such as student loan, home improvement, etc. The results are there already.


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