What rates you actually face in Europe
Swiss revolving credit (Kreditkarte/carte de crédit) typically charges 12–15% effective annual rate. Germany 14–22% on standard Visa/Mastercard, less on retailer-branded. France 18–21% on revolving credit (crédit renouvelable). Italy 15–22%. These rates are real and persistent — the ECB rate environment barely moves them.
Personal loans (Privatkredit / prêt personnel / prestito personale) for borrowers with clean credit history land at 5–9% APR in CH and 6–10% in DE/FR/IT for amounts €5,000–€30,000 over 24–60 months.
The math of consolidation
Imagine you owe €10,000 on a card at 18% APR and pay €250/month (interest plus modest principal). At that pace you finish in ~5 years and pay roughly €4,800 in interest.
Switch the balance to a 5-year personal loan at 7%: the monthly payment is ~€198 and total interest is ~€1,880. Even on the same 5-year horizon, you save ~€2,900 — and the lower payment frees cash flow.
Why term matters more than rate at first glance
Same €10,000 at 7%: a 3-year loan costs €1,120 in total interest (monthly ~€309). A 5-year loan costs €1,880 (monthly ~€198). The 5-year is 67% more expensive in total — but the payment is 36% lower.
Pick the shortest term you can comfortably afford after a 10% safety buffer on income. Use the EuroCalc loan calculator to compare both side by side.
Fees and small print
Watch for: origination/processing fees (1–4% upfront), early-repayment penalties (capped by EU consumer credit law at 1% of remaining principal, but check), and residual debt insurance bundled in — often expensive and rarely needed if you have life cover already.
Compare APR (effective annual rate including fees), not the headline interest rate. The APR is the only honest number.
When NOT to consolidate
If your credit history forces a personal-loan offer above 12%, consolidation savings shrink fast — the calculation may not work. Try negotiating with the card issuer for a lower rate first; many will move 2–5 points to retain a paying customer.
If consolidation feels like permission to refill the card, stop. Consolidation that turns into double debt is the single most common path to serious financial trouble. Cut the card or freeze it before drawing the loan.
Compare your scenarios
Run both options — current card payoff vs. consolidation loan — with your real numbers.
Open the loan calculator →Frequently asked questions
Does taking a personal loan hurt my credit score?+
Usually no, often the opposite. Replacing high-utilization revolving debt with a closed instalment loan tends to improve scores within 6 months.
Can I deduct loan interest from taxes?+
Switzerland yes (for any personal debt, against income tax). Germany only for income-producing debt. France and Italy generally no for personal loans.
Is a balance transfer card better than a personal loan?+
Sometimes, when you have a 0% promo for 12–18 months AND a realistic plan to clear the balance before the promo ends. Otherwise the snap-back rate often exceeds personal loan rates.
Should I borrow from family to clear the card?+
Mathematically often best — set a written repayment plan with a token interest rate to preserve the relationship and document the loan.
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