The Real Cost of Carrying Credit Card Debt

The average American household with revolving credit card debt owes just under $11,000 (Source: NerdWallet, 2026). Keep that balance on a high-interest credit card, and you're likely paying more than you need to. SoFi Personal Finance Reporter Starla Sampaco breaks down the opportunity cost of revolving credit card debt and how a personal loan may give you a clear path to paying it off. In this video, you'll learn: - How much the average household with credit card debt owes. - How much more you could pay in interest by keeping a $40,000 balance on a credit card instead of a personal loan.* - Why revolving credit card debt has no built-in finish line. - How a personal loan's fixed rate, fixed payment, and fixed end date can help you plan your payoff The goal is to help you understand what credit card debt really costs you, and how to choose a payoff plan with a finish line. This video is intended for: - Anyone carrying a credit card balance from month to month - Borrowers with larger credit card balances looking for a structured payoff plan - Anyone considering a personal loan to consolidate credit card debt. *Example based on a 7-year SoFi Personal Loan with a fixed rate of 15.89% APR, the average funded APR for SoFi Personal Loan borrowers who took out a loan with a 7-year term from March 15, 2025 to March 15, 2026. Lowest rates are reserved for the most qualified borrowers. The high-interest credit card APR shown is the average credit card APR reported by WalletHub for March 2026 under its Good Credit category. The savings estimate assumes the borrower doesn't take out any additional credit card debt during the same period. Both calculations assume 84 total monthly payments, no origination fee option selected, and no prepayment amounts. Starla Sampaco is a contracted SoFi employee. This content is provided for informational and educational purposes only and should not be construed as financial advice. Terms and conditions apply. SoFi Bank, N.A. Member FDIC, NMLS #696891.\ View your personal loan rate at SoFi: http://sofi.com/smarter Resources featured in this video:NerdWallet 2026 Household Credit Card Debt Study: https://www.nerdwallet.com/credit-cards/studies/household-debt-study SoFi Personal Loans: https://www.sofi.com/personal-loans/ Additional Resources: What Is a Personal Loan? https://www.sofi.com/learn/content/what-is-a-personal-loan/ Part 1: Balance Transfer vs. Personal Loan — https://youtu.be/rn8dvWt4it8 Part 2: Balance Transfer vs. Personal Loan — https://youtu.be/ZnL6cTZwb80 About SoFi®: A finance company that could help you get ahead. Get Your Money Right® with SoFi. Connect with SoFi: Subscribe to SoFi on YouTube: https://www.youtube.com/channel/UCuoYE0bfkZCwaspBVQ59jfQ?view_as=subscriber?sub_confirmation=1 Like SoFi on Facebook: https://www.facebook.com/SoFi/ Follow SoFi on Twitter: https://twitter.com/SoFi Follow SoFi on Instagram: https://www.instagram.com/sofi/ Follow SoFi on LinkedIn: https://www.linkedin.com/company/sofi/