CHICAGO (WLS) — For the first time ever, credit card debt in the U.S. has reached $1 trillion.
But according to financial experts at LendingTree, consumers who consolidate their credit card debt by using a personal loan may be able to save on interest payments and boost their credit score.
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The bump could be an average of 30 points and up to 71 points, if you’re paying down $25,000 or more in credit debt.
Millennials have the most to gain. People ages 25 to 40 get the biggest credit score boost from using a personal loan to pay off credit card debt.
Personal loans usually have lower interest rates but before taking one, make sure to compare interest rates, and remember – a loan is still debt.
