If you're struggling with multiple debts, debt consolidation could be your path to financial freedom. By combining multiple debts into a single payment, you can potentially lower your interest rate, reduce your monthly payment, and pay off debt faster. But depending on your situation, there may be an even more effective approach.
See How Much You Could Save
Get matched with debt relief options tailored to your situation. Most people with $10,000+ in debt could save significantly — often reducing what they owe by 30-50%. No commitment required.
Check My OptionsCompare Your Debt Consolidation Options
Debt Relief / Settlement
Negotiate with creditors to reduce the total amount you owe — often by 30-50%. Works well for people with $10K+ in unsecured debt.
Takes 2 min
Debt Consolidation Loan
Combine multiple debts into one fixed-rate loan. You still pay the full amount, but at a potentially lower interest rate with one monthly payment.
Confidential consultation
Debt Management Plan
Work with a nonprofit credit counseling agency to negotiate lower interest rates with creditors. You make one monthly payment to the agency.
Confidential consultation
Balance Transfer Card
Transfer high-interest credit card balances to a new card with a 0% introductory APR period, typically 12-21 months.
Confidential consultation
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Which Option Is Right for You?
I have $10,000+ in credit card or unsecured debt
I'm struggling to make minimum payments
→ Get a consultation — you may have more options than you think
My credit score is below 680
→ Personal loans will have high rates. Debt relief doesn't require strong credit
I have good credit and want a lower interest rate
→ A consolidation loan or balance transfer may work — check your options
What Is Debt Consolidation?
Debt consolidation is the process of combining multiple debts into a single loan or payment. This can simplify your finances and potentially save you money if you qualify for a lower interest rate than what you're currently paying.
How It Works
- Assess your debt: Add up all your current debts, interest rates, and monthly payments.
- Compare your options: Look at consolidation loans, debt relief, balance transfers, and management plans.
- Apply or enroll: Once you've chosen the right path, complete the application process.
- Make one payment: Instead of juggling multiple payments, you'll make a single monthly payment.
Consolidation vs. Debt Relief: What's the Difference?
Debt consolidation combines your debts into one loan — you still pay the full amount owed, but ideally at a lower interest rate with one convenient payment.
Debt relief (settlement) negotiates with creditors to reduce the total amount you owe. This can result in significant savings (30-50%), but may impact your credit score during the process. It's typically suited for people with $10,000+ in unsecured debt who are experiencing financial hardship.
Not sure which is right? Get a consultation to explore your options with no obligation.
Frequently Asked Questions
Will debt consolidation hurt my credit score?
A personal loan or balance transfer typically causes a small, temporary dip due to the hard inquiry. However, if you make on-time payments and reduce your credit utilization, your score should improve over time. Debt settlement may have a larger temporary impact but leads to debt freedom faster.
How much can I save with debt consolidation?
Savings depend on your current interest rates and the option you choose. If you're paying 20%+ APR on credit cards and consolidate to a 10% loan, you could save thousands. Debt relief programs can potentially reduce what you owe by 30-50%.
How long does debt consolidation take?
Personal loan funding can happen in 1-7 days. Paying off consolidated debt typically takes 2-5 years. Debt settlement programs usually take 24-48 months.
What is the difference between debt consolidation and debt relief?
Consolidation combines debts into one loan at a lower rate — you pay 100% of what you owe. Relief (settlement) negotiates to reduce the total amount owed, often by 30-50%. Relief programs typically don't require strong credit to qualify.