How to Get a Personal Loan Without Adding Debt

Whether your debt is in the form of a mortgage, auto loan, student loan, or credit cards, chances are, you probably don’t want to take on more debt. However, it’s normal to take on a new loan in order to pay off an existing, higher-interest loan or debt. Preferably, the new loan would have a lower interest rate which could save the borrower’s money in the long-term.

Eliminate high-interest credit card debt with a personal loan

People who struggle with high-interest debt on multiple credit cards may choose to take out a personal loan to pay it off. This is known as debt consolidation. Having one loan to pay each month rather than keeping track of multiple payments is also less of a hassle. It can help reduce the chance of making a late payment.

In addition to credit cards, personal loans can be used for just about anything. ere are reasons why people take out personal loans:

Pay off medical bills
Fund a wedding
Home repairs
Moving expenses
Funeral expenses

Discontinue the debt cycle

Taking out a personal loan without increasing your debt takes planning—you don’t want to continue the cycle of debt longer than you need to.

Paying off a mortgage over decades is one thing, but having high-interest credit card debt is another. It won’t set you up for financial success, especially if you want to save for a big purchase, such as a house or car. It may also make essential saving such as a rainy day fund or contributing enough to your retirement more difficult.

However, there are ways to use a personal loan to pay off debt without increasing your debt.

Here are strategies to keep your debt in check.

1. Make more than the minimum payments on your personal loan

Make the debt less expensive by paying off the loan early–try to make sure the lender doesn’t charge a fee for paying the loan before the term is done.

Make extra payments in the month or double up on the amount you pay each month, for example.

If your budget is tight and you can’t afford to double up, consider small increases, such as $10 or $20. Even if you think that amount won’t make a difference, the point is to get yourself into the habit and mindset of always making an effort to pay more than the minimum.

When your budget allows, incrementally increase the amount. That way, you pay less in interest and get rid of the debt faster.

2. Shop around for the lowest interest rates

An important part of the process to consider is shopping around to different lenders for the best rate. This may help you pay less over the life of the loan, saving you money on your debt.

Check out different lenders online and use their comparison tools or loan calculators to understand how much the loan will cost.

3. Borrow from a single lender rather than multiple lenders

Consider using a single lender for your financial accounts, such as your checking and saving accounts, credit cards, or mortgage. Sticking to one lender can help you build a solid credit history. It also builds a relationship and shows that you’re a reliable customer, which may help you snag a lower interest rate.

4. Create a plan for your finances

Come up with a plan to keep your debt-to-income ratio low—30 percent or lower. This ratio is calculated by taking the total amount of debt you have in relation to your income. Keep an eye on it as you work out a monthly budget.

In order to keep your spending in check, understand where your money is going each month. Take a look at bank statements and your monthly spending and total up your essentials, such as:

Rent/mortgage
Car payments
Groceries
Phone bill

Then look at the last three months of your non-essential spending:

Restaurant/bars
Entertainment such as movies, subscriptions
Taking Ubers/Lyfts
Gym memberships

After you find the average amount you’ve spent on non-essentials in the last three months, try to reduce the amount you spend. Perhaps you can have a goal to decrease this amount by 20 percent by canceling unnecessary subscriptions and cooking at home.

Focus on your needs vs. wants–which helps you figure out what is an unnecessary habit, such as eating at a restaurant or getting takeout three times a week. If you’ve reduced your weekly delivery habit and saved $100, for example, you can put that money into your debt.

An important part of this plan to highly consider is to actually stick to it. Spend less, be intentional about paying down debt, and try to avoid using your credit cards–which may hinder your progress to getting out of debt.

5. Create healthy financial habits

It may not be realistic to completely avoid debt. Establish healthy spending and saving habits, and live below your means. Also, don’t borrow more than you can afford, even if you qualify.

These are a few good practices to help get this going:

Contribute to an emergency fund
Throw extra money into your debt
Pay off credit card balances in full, if you can
Reduce your wants and focus on your needs

Take control of your debt situation and change your financial future for the better.

Upstart Network, Inc. (NMLS #936133) is not a lender. All loans on its marketplace are made by regulated financial institutions.

All mortgage lending is conducted by Upstart Mortgage, LLC dba Upstart Home Lending. (NMLS #2443873). Equal Housing Opportunity.

Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model considers education: Neither Upstart nor its lending partners have a minimum educational attainment requirement in order to be eligible for a loan.
41% more approvals and 33% lower rates than a traditional model: As of publication in April 2026, and based on a comparison between the Upstart model and a hypothetical traditional model using Upstart data from Jan – Dec 2025. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
Unsecured Loans: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Loan amounts from $1,000 -$75,000: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($1,500), MA ($7,000). Maximum loan amounts may vary by state.
Closing and funding timeline: In April 2026, 10% of funded HELOCs achieved a closing timeline of 2 days or less and a funding timeline of 7 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2025 Home Lending Study reports an average industry closing time of 37 days.
APRs from 6.2% – 35.99%, with 3 or 5 year terms: The full range of available rates varies by state. The lowest rates are only available to the most qualified applicants. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 17.50% and a 7.25% origination fee of $725, for an APR of 21.23%. In this example, the borrower will receive $9275 and will make 60 monthly payments of $252. APR is calculated based on 5-year rates offered in March 2026. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Instant deposits: To receive instant funding, your bank account must support instant transfers. If your account does not support instant transfers, funds will be available to you depending on your bank’s transaction processing time and policies.
Always On Commitment: We are committed to maintaining your credit limit as long as you continue to meet program eligibility and account requirements. To ensure the safety and security of all our members, we reserve the right to adjust or close lines in specific circumstances, including account default or late payments, suspected fraud, violation of our terms of service (including abusive behavior), or when necessitated by legal or regulatory requirements.
Cash Line draws: You may request a draw at any time. Only one draw may be outstanding at a time; after it is fully repaid, you may request another.
HELOC APRs as low as 6.52%: Terms shown here are subject to change without notice. APRs for initial advances range from 6.52% to 18.00% based on rates offered as of April 2026. The lowest rate is only available to consumers willing to become a member of a credit union and to those who meet a minimum FICO score of 780, CLTV under 70%, and DTI under 45%. Your actual rate will depend on many factors such as your credit history, combined loan-to-value ratio (CLTV), line amount, loan term, lien position, and property state. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
No annual fee, prepayment penalty, or fees to redraw: Terms shown here are subject to change without notice. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
2,500+ Variables:As of 3/31/2026. “Variables,” often also referred to as “features,” refers to raw variables and combined variables considered in our AI models. A “raw” variable is a non-combined, conceptually distinct unit of data, such as “applicant-reported savings.” A “combined” variable is data that has been transformed, combined, or otherwise engineered from a raw variable or set of raw variables, such as “applicant-reported savings” divided by “loan amount.
Fully automated loans: In Q2 2026. Percentage of Loans Fully Automated, which is defined as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans, and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period.

How to Get a Personal Loan Without Increasing Debt