A personal loan allows you to borrow money from a lender for almost any purpose, typically with a fixed term, a fixed interest rate, and a regular monthly payment schedule. Collateral is usually not required and personal loans typically have lower interest rates than most credit cards.Since interest rates and loan terms on a personal loan are fixed, you can select a loan and payment amount that fits within your budget—which is great when you’re consolidating debt. Plus, you’ll know the exact date your loan will be fully paid off.Using a personal loan to consolidate high-interest credit card debt might even help you improve your credit score, by diversifying your credit mix, showing that you can make on-time monthly payments, and reduce your total debt.