Debt Consolidation Loans vs Credit Cards

Posted on Apr 10, 2025

Debt consolidation loans and credit cards can help combine your debts and save on interest while paying off your remaining balances – so which is best?

The right option for you will likely depend on your circumstances, the amount you need to pay off and how you prefer to make your repayments.

Both debt consolidation loans and credit cards can be good options to clear your debts so let’s have a compare debt consolidation loans vs credit cards – which is best?

Debt Consolidation Loans

At Penny Post our Swap & Save Loan helps members to tidy up their finances by combining all of their debts into one manageable repayment. With a lower APR, we can lower your regular repayments and save you money!

• One fixed regular payment – Our Swap & Save Loan means just one repayment each payday. Numerous payments, on different days to different lenders, can be a thing of the past!

• One interest rate –Make life simple and slash your repayments with one competitive, clear interest rate! Our loans have no hidden fees, and can clear your expensive bills with existing lenders into one manageable and affordable regular payment at just 16.9% APR.

• One clear end date – By consolidating your existing lending, we will pay your existing lenders directly and you will have a clear end date for your loan.

• We’ll do the legwork by paying your existing lenders directly. All that is left for you to do is close the account with them once the debt has been cleared.

Credit Cards

Balance transfer credit cards are another option to help you combine and pay off debts. By using a balance transfer credit card, you could benefit from a 0% APR as an introductory offer but be careful as this will be for a limited time only and you might end up paying more in total!

You can transfer balances from multiple credit cards to consolidate your debts. Make sure you read the small print and terms and conditions if you’re hoping to combine additional debts such as car finance, personal loans or even store cards. Many balance transfer credit cards don’t allow you to combine additional debts onto the credit card.

Money Saving Expert says that a debt consolidation loan is a decent option if you’re looking to save money on your debts.

Our Swap & Save Loan has already helped members consolidate more than £1 million in debts and save money.

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