Personal Loans and Debt Management: Everything You Need to Know

Managing debt can be challenging, especially if you’ve been dealing with it for a long time. If you struggle with debt, you're not alone; millions of Americans share this issue. In fact, consumer debt across the U.S. is currently at $13.86 trillion, including credit cards, mortgages, and auto loans. 

There is good news. With the right debt management solution, you may be able to pay down your balances and get your finances on track. There are many options for consolidating debt. The key is to know which is best for your financial situation. Personal loans often provide a better solution and offer added benefits in the long run.

A More Effective Way to Tackle Debt

If you’ve ever remodeled your home or looked for ways to finance a big purchase, chances are you’ve considered a personal loan. Often seen as a great way to pay for home improvements, vacations, or even medical emergencies, personal loans are a go-to option for covering major expenses.

Personal loans can also be an effective way to pay down credit cards and other high-interest loans. In addition to allowing you to consolidate your existing payments, a loan can help you save hundreds or even thousands of dollars on interest over time. 

Personal Loans Vs. Revolving Debt

Before we dive into the specifics of personal loans, it’s important to understand how they differ from revolving debt. Revolving debt is most often associated with credit cards and other lines of credit. It can add up quickly when multiple accounts are involved.

One of the key issues with revolving debt is that it can be difficult to keep up with monthly payments—especially if you keep adding to it. Even if you regularly make minimum monthly payments on credit card balances and high-interest loans, you may feel like there is no end in sight. And you may feel challenged because the amount you must pay varies each month. 

Personal loans may provide a better alternative. A personal loan consolidates your revolving debt into one fixed monthly payment; the amount you pay depends on how much you owe and won’t change. You can also lock in your repayment term so you choose how long you want to take to pay off your loan.

How to Design a Loan Around You

Once you’ve determined if a personal loan is right for you, it’s time to consider your options. Although it may seem like most lenders offer similar loan terms, the reality is that terms can vary significantly from one lender to another. That’s why it’s important to find a lender who offers loan benefits that work for you. 

With flexible repayment terms, a  Discover® personal loan is a great option. Tailored to your specific needs, this type of loan allows you to borrow from $2,500 to $35,000 and choose a repayment term ranging from 36 to 84 months*. You’ll also be able to lock in your rate and determine your set regular monthly payments. What’s more, there are no loan origination fees and no fees of any kind as long as you make your payments on time.

Another added benefit of a Discover personal loan is that you can get started in minutes and, in most cases, get a same-day decision. If you’re approved, Discover can send funds directly to your creditors or your bank account in as little as one business day after acceptance.

Though it may feel overwhelming at times, overcoming debt doesn’t have to be difficult. With the right strategy and a customized plan, you can get your finances back on track and manage your debt effectively.

 *Your APR will be between 6.99% and 24.99% based on creditworthiness at time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you'll pay just $256 a month. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate such as your credit history, application information and the term you select.