Consolidating credit card debt into a loan

Usually, however, this won’t be a cost-efficient way to manage debts.

“That would be unlikely to be a great path because student debt with high interest will still beat most personal loan interest rates,” De Gisi says.

If you want to refinance student loans and consolidate credit card debts at the same time, there are some things to watch out for.

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This means your student debts cannot be combined with credit cards or other debts under this type of loan. Borrowers can usually only qualify for loans equal to their current student loan payoff amounts.

Your new loan will also have other qualities of student debt, like being harder to discharge in bankruptcy.

Here’s what you need to know if you’re hoping to combine student loans with other debts.

If you’re hoping to consolidate student loans and other debts into the same loan, don’t expect to pay lower interest on the new loan.

This works because personal loan rates tend to be lower than credit card rates.