Is $40,000 in credit card debt too much for a consolidation loan?

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September 14, 2026 / 11:42 AM EDT / CBS News

There's a big difference between carrying a few thousand dollars in credit card debt and owing tens of thousands of dollars across multiple credit cards, particularly in today's economic environment. At that level, even the monthly minimum credit card payments can consume a substantial part of your budget, while the high interest charges that compound month after month can make it difficult to gain much ground — even when you're consistently paying more than the minimum.

There are a lot of borrowers facing that type of pressure right now, too, as credit card balances are continuing to climb upward rapidly. Americans owed $1.26 trillion on their credit cards in the second quarter of 2026, up $21 billion from the previous quarter — and they owe it at a time when the average credit card rate is hovering above 22%. In turn, finding a way to reduce the interest costs or simplify the repayment process has become increasingly important.

Debt consolidation is one potential way to do that, as it allows…

Original source: https://www.cbsnews.com/moneywatch/