Debt consolidation combines multiple debts (credit cards, personal loans, medical bills) into one loan with a single payment, ideally at a lower interest rate.
Find Debt Consolidation Providers in Your City
See How Much You Could Save
Takes 60 seconds — no credit check, no obligation. Compare debt consolidation options from trusted providers.
Related Reading
Related research & tools
Frequently Asked Questions
What types of debt can I consolidate?
Credit card balances, personal loans, medical debt, payday loans, student loans (private), and auto loans can be consolidated. Federal student loans have separate consolidation programs through the government.
How much can I save with consolidation?
If you consolidate 5 credit cards at 20% APR into a consolidation loan at 12% APR for 5 years, total interest falls by roughly 43% (about 33% of the balance at 12% versus about 59% at 20%, paid over 60 months). Savings depend on your new rate, term, and how long you keep new debt off new cards.
Will consolidation hurt my credit score?
Temporarily — the hard inquiry and the new account can lower your score at first. Paying off cards lowers your credit utilization ratio, and on-time payments help your score recover.
What if my credit score is low?
Bad-credit consolidation loans are available from credit unions, online lenders, and peer-to-peer networks. Expect higher rates than borrowers with good credit. A co-signer or a secured loan (backed by collateral) can lower your rate, but you risk the collateral, and the co-signer is liable if you miss payments. Improve score first if possible.
Is debt consolidation the same as a debt management plan?
No — consolidation is a single loan you take out. Debt management plan is a negotiated repayment through a credit counselor (usually nonprofit) where creditors may lower rates/fees. DMP doesn't create a new loan; it restructures existing debt.
