Debt Consolidation, Loans & Debt

Debt Consolidation Loan vs Balance Transfer Card: Which Costs Less?

The CFPB reported $160 billion in credit card interest in 2024. The choice between a balance transfer and a personal loan comes down to one question: can you clear the full transferred balance before the 0% promotional period ends? At the CFPB's 4.3% average transfer fee, a $10,000 transfer costs $430 upfront. At the Federal Reserve's 11.86% 24-month benchmark, the same loan generates approximately $1,280 in total interest. This article uses CFPB and Federal Reserve data to show which option costs less — and when the answer flips.