You want to decrease the amount of interest you're paying.
If you have several credit cards or personal loans, you may not even realize how much interest you’re paying because every note has a different interest rate. In many cases, a large portion of each debt payment is going towards interest every month. By rolling all those various debts into one loan or line of credit with a lower interest rate, you may be able to save a lot of money.
You have various options for acquiring credit with a lower interest rate, such as a credit card balance transfer, an unsecured personal loan, home equity line of credit (HELOC) or a mortgage refinance.
If you can find a credit card balance transfer that offers 0% APR for a lengthy period of time, that may be a good option. Find out whether there is a fee for the balance transfer and how much it is. If the fee is small or if there is no fee, you may be able to leverage the offer to pay for your current debt that has a higher interest rate. This method allows you to temporarily reduce your monthly financial burden and delay the debt repayment. If you can pay off the balance before the offer expires, you could potentially lower the total interest.
An unsecured personal loan could be another good option if you’re paying interest on a large credit card balance. Not only could a personal loan lower the total interest, but it also comes with one fixed monthly payment, making it easy to manage.
Consider a HELOC if you own a home, as it allows you to borrow against the equity in your home at an affordable rate. Since a HELOC is secured by your home, the interest rate is usually lower than the unsecured loans or lines of credit. Many HELOCs allow you to pay interest only during the draw period, which may temporarily relieve your monthly financial burden. To pay off the debt faster, try paying principal and interest or lock in an affordable fixed rate.
Or, consider a cash-out mortgage refinance, in which your current mortgage is replaced with a new one that provides you with an additional lump sum of funds to use. You can use these funds to pay off higher-interest debt. Be advised that for the HELOC and cash-out mortgage refinance options the borrower's house would be used as collateral to secure the loan/line of credit