Americans are carrying more credit card debt than ever, and the ads know it.
Scroll through any social feed and you'll find cheerful promises about rolling all those balances into one tidy monthly payment.
The pitch is everywhere because the business behind it is very, very lucrative.
The average credit card rate has hovered around 20% or higher for well over a year, according to Federal Reserve data.
A personal loan advertised at 11% or 12% for well-qualified borrowers genuinely can cut interest costs.
The problem is who actually gets those rates, and what happens when you don't.
Lenders typically advertise their lowest possible APR, which goes to applicants with excellent credit.
If your credit took a hit from maxed-out cards, you may be offered 22%, 25%, or worse.
At that point you've traded five manageable minimum payments for one larger payment at roughly the same cost, plus a new loan on your report.
Studies and consumer advocates have flagged a pattern for years: people consolidate balances, feel relief, and then start using the freed-up credit cards again.
Now they have the old card debt plus a new loan.
Some lenders charge origination fees of 1% to 8%, deducted before the money reaches you.
Nonprofit credit counseling agencies, by contrast, often charge little or nothing and can negotiate lower rates directly with card issuers.
The catch is you typically have to close the cards, which many people resist.
Home equity loans and HELOCs are another route the ads push, and this one carries real weight.
You'd be swapping unsecured debt for debt tied to your house.
That's a dramatically different consequence than a late credit card fee, and it deserves a lot more thought than a 30-second commercial gives it.
If you're considering consolidation, run the numbers yourself first.
Compare the total interest you'd pay under your current cards versus the new loan, including fees.
Check whether the new payment actually fits your budget, not just whether it's lower.
And ask a nonprofit counselor for a free second opinion before signing anything with a for-profit lender.
Our take: consolidation is a tool, not a rescue.
It works for people with steady income, stable spending habits, and good enough credit to qualify for a real rate cut.
Final Thoughts
For everyone else, it can quietly stretch the problem over more years at a cost that looks smaller each month but isn't.