A growing credit card balance can feel manageable until the minimum payments stretch on for years and the total owed barely seems to move. For many households, that slow accumulation of interest has become a familiar strain, especially as overall debt levels continue to rise. A recent MarketWatch report takes a closer look at one option borrowers are increasingly considering: using personal loans to regain control over what they owe.
As reported by MarketWatch, total U.S. household debt reached $18.8 trillion by the end of 2025, with a sharp increase in just the final quarter. Against that backdrop, more consumers are turning to personal loans, which offer a structured way to borrow a fixed amount and repay it over a set period. Unlike revolving credit cards, these loans typically come with predictable monthly payments and a defined payoff timeline. That clarity can be appealing for people juggling multiple balances, particularly when interest rates on credit cards remain high.
National Debt Relief’s chief experience officer, Brit Simon, highlighted this benefit in the article, noting that a personal loan can simplify repayment by consolidating several debts into one. Instead of tracking multiple due dates and fluctuating balances, borrowers have a single payment and a clearer sense of progress. For some, that shift alone can make it easier to stay consistent and avoid missed payments.
Still, the article emphasizes that personal loans are not always the perfect solution. While some borrowers may qualify for rates significantly lower than those attached to their credit cards, others may not see the same advantage. Average personal loan rates can land in the low teens or higher, depending on creditworthiness. If the new rate is not meaningfully lower, or if fees and repayment terms increase the overall cost, consolidation could end up doing more harm than good.
The structure of these loans also requires careful consideration. Fixed payments, while predictable, are often higher than minimum credit card payments. That can create added pressure if a household budget is already stretched thin. And as several experts in the piece point out, moving debt from one place to another does not address the habits or circumstances that led to the balances in the first place. Without a plan to avoid new borrowing, people risk falling into a deeper cycle.
What stands out in the MarketWatch coverage is the importance of looking beyond the monthly payment. The real question is whether a personal loan reduces the total cost of repayment over time and provides a clear, manageable path forward. Comparing annual percentage rates, factoring in fees, and understanding the full repayment timeline are all essential steps before making a decision.
For borrowers who qualify for favorable terms and are ready to adjust how they manage credit, a personal loan can be a practical tool that replaces uncertainty with structure. You can read the full article on MarketWatch to explore the details and see how the numbers might apply to your own situation.
