Pros and cons of debt consolidation: Is it a good idea?

Those with excellent credit often get the lender’s lowest rates. These can be under 7%, depending on the lender.Of course, rates vary depending on your credit score, and the loan amount and term length. But if you have average credit or better, you’ll likely get a lower interest rate with a debt consolidation loan than what you’re currently paying on your credit card.As of December 2025, the average credit card rate is 19.72%. Meanwhile, the average personal loan rate is 12.21%.Bankrate’s take: Consolidatin ...