Can personal loans be used to pay off debt?

Personal loans can be used to pay off debt. In fact debt consolidation is one of the most common uses of personal loans. It’s quite common to find personal loans with significantly lower interest rates than credit cards, and using a personal loan to pay off credit card debt can potentially save hundreds or even thousands of dollars in interest. Plus, installment debts like personal loans are typically considered more favorably in credit scoring formulas than revolving debts like credit cards.