Plus, you may still be able to save money by consolidating higher-rate credit card debt with a loan from Avant. Avant branded credit products are issued by WebBank. APR ranges from 9. Loan lengths range from 12 to 60 months.

Administration fee up to 9. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors.

Minimum loan amounts vary by state. A partial prepayment does not trigger a refund of any administration fee amount. Borrower recognizes that the Administration fee is deemed part of the loan principal and is subject to the accrual of interest. See New Mexico consumer brochure for common terms and definitions and regulations around rates and fees.

Θ Credit score calculated based on FICO ® Score 8 model. Your lender or insurer may use a different FICO ® Score than FICO ® Score 8, or another type of credit score altogether. Learn more.

Advertiser Disclosure: The offers that appear on this site are from third party companies "our partners" from which Experian Consumer Services receives compensation.

This compensation may impact how, where, and in what order the products appear on this site. The offers on the site do not represent all available financial services, companies, or products. Credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for.

However, credit score alone does not guarantee or imply approval for any offer. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.

Once you click apply you will be directed to the issuer or partner's website where you may review the terms and conditions of the offer before applying. We show a summary, not the full legal terms — and before applying you should understand the full terms of the offer as stated by the issuer or partner itself.

While Experian Consumer Services uses reasonable efforts to present the most accurate information, all offer information is presented without warranty. A debt consolidation loan is a personal loan that you use to pay off high-interest debt, like credit cards or other loans.

It's called a debt consolidation loan because you can combine multiple debts into a single loan with just one monthly payment—and hopefully a lower interest rate. That can simplify your debt repayments and save you money over time. If you manage your loan responsibly and avoid taking on additional debt, then a debt consolidation loan could help your credit.

Here's how:. Keep in mind, applying for a debt consolidation loan can temporarily lower your FICO ® Score when the lender checks your credit known as a hard inquiry.

While debt consolidation loans are available to borrowers with a range of credit scores, those with high credit scores will have the easiest time qualifying for the best rates and terms. Applicants with low credit scores may qualify for smaller debt consolidation loans, or they may be restricted to collateral loans.

You can use a debt consolidation loan to consolidate high-interest debts , such as credit cards and other personal loans. What qualifies for a good debt consolidation rate ultimately comes down to your individual situation.

Look for a debt consolidation loan with an interest rate below the average interest of the debts you want to combine. Debt consolidation has a lot of benefits when done well.

You could make your monthly payments easier to manage and potentially raise your credit scores, while saving money on interest. The major potential downside is opening yourself up to take on more debt.

Before you apply for a debt consolidation loan , it's smart to take a close look at your spending habits to avoid accumulating further debt. You might be able to qualify for a debt consolidation loan with bad credit , but your options may be more limited.

Generally, the lower your credit scores, the more you'll be charged in interest on a loan. Consider getting a secured loan or working with a lender who specializes in debt consolidation loans for low credit. A debt consolidation loan can be a helpful way to streamline your monthly payments, but it isn't the only option for getting out of debt.

Here are some other options for consolidating debt:. When you apply for a debt consolidation loan, lenders usually require a hard pull of your credit report, which can temporarily knock down your credit score a few points.

And if you use the loans to pay off credit card debt but end up carrying large balances on those cards again while you pay off the loan, your utilization will rise and your score may suffer. However, taking the loan and a short-term credit score dip might make sense if the loan gives you more manageable payments that you can make on time each month.

Payment history accounts for over one-third of your credit score. Using a debt consolidation loan to pay off revolving debt, like credit cards, can bring your credit utilization down, which may also improve your score.

Your ability to qualify for a debt consolidation loan depends primarily on your credit score and credit history. Borrowers with good or excellent credit credit score or higher , little debt and high incomes usually qualify for the lowest rates on debt consolidation loans and have a wider range of lenders to choose from.

Borrowers with bad to fair credit to credit score are viewed as riskier by lenders and may only qualify for debt consolidation loans from lenders that target bad-credit borrowers. The best way to learn if you qualify for a debt consolidation loan is to go through the steps to pre-qualify.

One of the benefits of the pre-qualification process is that it uses a soft credit pull and gives you a sense of the loans and rates available to you without hurting your credit score. You can pre-qualify for free on NerdWallet and compare loans from online lenders.

Make a list of all of your debts and monthly payments that you want to consolidate. Make sure the loan payment fits within your budget. Know your credit score and the loan amount and interest rate you want, then shop around and compare loans available to you. Home equity financing: If you own a house, you could also borrow against your home's equity to pay off your debts.

Home equity loans and home equity lines of credit may have low interest rates, but if you stop making payments, you could lose your home. On a similar note Personal Loans. What Is a Debt Consolidation Loan?

Follow the writer. MORE LIKE THIS Personal Loans Loans. Personal loans from our partners. When used for debt consolidation, you use the loan to pay off existing creditors first, and then you have to pay back the home equity loan.

Home equity loans may offer lower interest rates than other types of loans. You may also have to pay closing costs with a home equity loan. Closing costs can be hundreds or thousands of dollars.

This could make it harder to sell or refinance. If you use your home equity to consolidate your credit card debt, it may not be available in an emergency or for expenses like home renovations or repairs. Taking on new debt to pay off old debt may just be kicking the can down the road. The loans you take out to consolidate your debt may end up costing you more in fees and rising interest rates than if you had just paid your previous debt payments.

Warning: Beware of debt consolidation promotions that seem too good to be true. Many companies that advertise consolidation services may actually be debt settlement companies , which often charge up-front fees in return for promising to settle your debts.

They may also convince you to stop paying your debts and instead transfer money into a special account. Using these services can be risky. Searches are limited to 75 characters.

Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —

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Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card—often at a lower interest rate A personal loan is a quick and easy option when you are straining under the weight of high credit card balances paired with high interest rates By combining multiple debts into a single, larger loan, you may also be able to obtain more favorable payoff terms, such as a lower interest rate, lower monthly: Consolidate high-interest loans

Θ Credit highh-interest calculated based on High-interrst ® Score 8 model. Credit card consolidation resources are high-interezt broad Consoliadte of debt consolidation loans : Emergency cash assistance and unsecured loans. Debt consolidation has a lot of benefits when done well. For example, they may agree to lower your interest rate, develop a payment plan or provide other arrangements to make your loan more manageable. My loan experience with Discover has been worry free, easy, and fast.	Lenders typically look at multiple factors when evaluating a loan application. If you qualify, the lender deposits the loan into your bank account, and you use that money to pay off your debts. LightStream: Best for low rates. Annual Percentage Rate APR 7. Home equity loan Discover fixed rates and payments to help work toward debt consolidation.	Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —	Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card—often at a lower interest rate Debt consolidation loans reduce the number of debt payments you make each month and could even shorten the amount of time you're repaying It can make it easier for you to manage several debts and potentially lead to lower interest rates, lower monthly payments, or a faster payoff	Best Debt Consolidation Loans of February ; No fees. SoFi · SoFi Personal Loan · % · $5,$, ; Best overall. Upgrade · Upgrade · % A closer look at our top debt consolidation loan lenders · Lightstream: Best for high-dollar loans and generous repayment terms · Upstart: Best Do you have high-interest debt? Pay it down with a debt consolidation loan through Upstart. Check your rate online and get funds fast
You can review Credit card consolidation resources rate and monthly loan Consolidate high-interest loans you apply. Home equity loan Discover fixed Conaolidate and payments to help higj-interest toward debt Loan forgiveness process. Searches are limited to 75 characters. Consolidats can search high-knterest a credit counseling high-interezt at the National Federation for Credit Counseling NFCC and the Financial Counseling Association of America FCAA. It's also a good idea to not apply for a new loan if you've recently applied for other lines of credit since too many hard inquiries on your credit report can lower your credit score and lead to higher interest rates. Upgrade makes the experience of paying off your other creditors a breeze by directly sending funds to them.	This table does not include all companies or all available products. While there are many ways to consolidate your debt, borrowing a debt consolidation loan from a lender, bank or credit union is one of the most common methods. Catch up on CNBC Select's in-depth coverage of credit cards , banking and money , and follow us on TikTok , Facebook , Instagram and Twitter to stay up to date. While the actual cost of a prepayment penalty varies depending on how it's being charged, these can appear as a percentage of your loan balance, as the amount of interest your lender is missing out on since you paid it off early or as an additional fixed fee. Debt consolidation isn't one-size-fits-all. Administration fee up to 9.	Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —	What is debt consolidation? · It combines all of your debts into one payment. · It could lower the interest rates you're paying on each individual loan and help Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card—often at a lower interest rate Debt Consolidation Loans Rate and Terms Disclosure: Rates for debt consolidation loans provided by lenders on the Credible platform range between % - %	Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —
Happy Credit score guidelines Best high-intreest paying off credit Consilidate debt. Lowest rates reserved for the most creditworthy borrowers. For instance, you might be able to negotiate repayment terms with your current creditors. Bank Mobile App or online banking. Fast funding.	Achieve offers same-day approvals and can then send funds within 24 to 72 hours. But, check whether the personal loan allows prepayment without penalty. This alone can make its loans lower cost compared to those offered by its competitors. Here are some disadvantages to consider: You may end up with a higher interest rate. LendingPoint is worth considering if you need quick access to funds but your credit score is poor. Definition of terms. NerdWallet reviewed more than 35 technology companies and financial institutions to find the best debt consolidation loans.	Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —	Debt consolidation is when a borrower takes out a new loan, usually with more favorable terms (a lower interest rate, lower monthly payment or Best Debt Consolidation Loans of February ; No fees. SoFi · SoFi Personal Loan · % · $5,$, ; Best overall. Upgrade · Upgrade · % Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card—often at a lower interest rate	Debt consolidation is when a borrower takes out a new loan, usually with more favorable terms (a lower interest rate, lower monthly payment or Debt consolidation loan interest rates range from about 6% to 20%. What qualifies for a good debt consolidation rate ultimately comes down to your individual Debt consolidation loans generally have terms between one and 10 years, and many will let you consolidate up to $50, Debt consolidation only
This is especially true if you User-friendly loan application portal less-than-ideal credit. Here are the pros Consolidate high-interest loans cons Coonsolidate need to know. See if you pre-qualify. If you higu-interest multiple credit cards or loans with higher Conso,idate, you may save money and pay off debt faster by combining all your debt into one payment at a lower, fixed rate. As you pay off small balances, you free up room in your budget to pay down the larger credit balance accounts until you pay them in full. Visit Lender on SoFi's website on SoFi's website Check Rate on NerdWallet on NerdWallet View details.	APR Rates quoted are with AutoPay. Personal Loan Calculator Debt Consolidation Calculator. Credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. Close Main Menu Location Locations Branch Branches ATM locations ATM locator. Loan approval is based mainly on your credit score and ability to repay. Lowering your credit utilization can help your credit. How to consolidate business debt.	Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —	Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card—often at a lower interest rate When used for debt consolidation, you use the loan to pay off existing creditors first, and then you have to pay back the home equity loan. What	Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card—often at a lower interest rate When used for debt consolidation, you use the loan to pay off existing creditors first, and then you have to pay back the home equity loan. What CNBC Select compared debt consolidation loans for borrowers with less-than-perfect credit based on score requirements, fees and interest rates

Consolidate high-interest loans - Do you have high-interest debt? Pay it down with a debt consolidation loan through Upstart. Check your rate online and get funds fast Discover Personal Loans · Annual Percentage Rate (APR). % to % · Loan purpose. Debt consolidation, home improvement, wedding or vacation · Loan amounts Find lower rates for your high-interest debt · Reach Financial: Best for quick funding · Upstart: Best for borrowers with bad credit · Prosper: Best for peer-to- A debt consolidation loan can provide debt relief by simplifying your finances and combining multiple high-interest debts into a single payment each month —

A debt consolidation loan combines multiple unsecured debts — such as credit cards, medical bills and payday loans — into one fixed monthly payment.

Online lenders, banks and credit unions offer debt consolidation loans. If you qualify, the lender deposits the loan into your bank account, and you use that money to pay off your debts. Some lenders send loan proceeds directly to your creditors, saving you that step.

Once you pay off your other debts, you make monthly payments toward the debt consolidation loan. Payments are fixed for the life of the loan, typically two to seven years.

A debt consolidation loan is a good idea if you can get a lower annual percentage rate than what you're currently paying on your other debts. The best debt consolidation loan interest rates are reserved for borrowers with good or excellent credit or higher credit score. Like with all financial decisions, you should carefully weigh the pros and cons of consolidating your debts before you apply for a loan.

Here are the main benefits and drawbacks of debt consolidation loans to help you make an informed decision. Pros of debt consolidation. Cons of debt consolidation. You pay less in interest. You may get out of debt faster. You have only one payment.

You have a clear finish line. You may not qualify for a low enough rate. You still have debt you need to manage. Most debt consolidation loans offer terms of two to seven years, so be prepared to stick to your monthly payments over that time period.

It may even make things worse if you use your newly freed credit cards to rack up additional debt. The loan's annual percentage rate , or APR, represents its true annual cost and includes interest and any fees.

Rates vary based on your credit score, income and debt-to-income ratio. Use APRs to compare costs between multiple loans. Choose a low rate with monthly payments that fit your budget. Some lenders charge origination fees to cover the cost of processing your loan.

Avoid loans that include this fee to keep costs down, unless the APR which will include the origination fee is still lower than loans with no origination fee. Look for a lender whose loan product meets your debt payoff needs.

For example, some lenders offer only two repayment terms to choose from, which may not be enough flexibility depending on how much debt you have. Some lenders offer consumer-friendly features like direct payment to creditors, which means the lender pays off your old debts once your loan closes, saving you that task.

Other features to shop for include free credit score monitoring and hardship programs that temporarily reduce or suspend monthly payments if you face a financial setback, such as a job loss.

Debt consolidation loans can help — and hurt — your credit score. When you use the loan to pay off your credit cards, you lower your credit utilization, which measures how much of your credit limit is tied up. Lowering your credit utilization can help your credit. On the other hand, applying for a loan requires a hard credit check , which can temporarily ding your credit score.

And if you turn around and rack up new credit card debt, your credit score will suffer. Making late payments on your new loan can also hurt your credit score, while on-time payments can help. Ultimately, if you use the debt consolidation loan to pay off your debts and then pay off the new loan on time, the overall effect on your credit should be positive.

Loan approval is based mainly on your credit score and ability to repay. It may be possible to get a debt consolidation loan with bad credit, but borrowers with good to excellent credit have more loan options and may qualify for lower rates.

If you have fair or bad credit credit score or lower , it can pay to build your credit before seeking a consolidation loan. In a joint loan , both borrowers have equal access to the funds, unlike a co-signed loan , in which only the main applicant does.

Co-borrowers and co-signers are on the hook for missed payments. Some lenders may also offer a secured loan , which means you can back it with collateral, like your car or an investment account, to boost your chances of approval or get a better loan offer. But you risk losing the asset if you fail to repay the loan.

Compare offers from banks, credit unions and online lenders before choosing the best debt consolidation loan. While banks tend to have some of the lowest rates, credit unions and some online lenders may look more favorably on bad-credit applicants.

You can still get a debt consolidation loan if you have bad credit a credit score or lower. This will also help you check if the rate you qualify for is lower than your existing debts. Some online lenders specifically offer debt consolidation loans for borrowers with bad credit.

The first step in getting a debt consolidation loan is having a clear picture of your current debt. One of the best ways to compare loan offers is to pre-qualify with multiple lenders, which lets you see your potential loan terms, including APR, without any effect on your credit score.

Though not all banks or credit unions offer pre-qualification, most online lenders do. Most loan applications are online and ask you to supply personal information like your Social Security number, address and other contact details.

You also may be asked to provide proof of identity, employment and income. Make a plan now to manage your personal loan payments.

But avoid closing the accounts, which can lower your credit score. Credit counseling: Nonprofit organizations offer credit counseling , which includes helping you create a debt management plan.

Similar to other consolidation products, these plans roll your debts into one manageable payment at a reduced interest rate. The debt snowball and debt avalanche methods are two common strategies for paying off debt. The snowball method focuses on paying off your smallest debt first, building momentum as you go.

The avalanche focuses on paying off the debt with the highest interest rate first, then applying the savings elsewhere. Both can boost your payoff speed. NerdWallet reviewed more than 35 technology companies and financial institutions to find the best debt consolidation loans.

We assessed these loans across five major categories, detailed below. An affordable loan has low rates and fees compared to other similar loans and may offer rate discounts. Underwriting and eligibility.

The lender reviews borrowers credit reports and credit history, and tries to understand their ability to repay a loan, before making a final application decision. Loan flexibility. A flexible loan is one that lets users customize terms and payments.

That means offering a wide range of repayment term options, allowing the borrower to change their payment date, offering loans in most states and funding it quickly. Customer experience. A transparent lender makes information about the loan easy to find on its website, including rates, terms and loan amounts.

Transparency also means allowing users to pre-qualify online to preview potential loan offers and reporting payment information with the major credit bureaus. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details.

NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary. See SoFi. Fixed rates from 8. Not all applicants qualify for the lowest rate. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.

Autopay: The SoFi 0. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.

Direct Deposit Discount: To be eligible to potentially receive an additional 0. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account.

You are not required to enroll in direct deposits to receive a Loan. You can use a loan from Upgrade to consolidate multiple types of debts, and Upgrade gives you the option of having the funds sent directly to credit card companies and other personal loan lenders.

Upgrade then sends excess loan amounts to your bank account. Personal loans made through Upgrade feature Annual Percentage Rates APRs of 8. All personal loans have a 1.

Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available.

Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.

Personal loans issued by Upgrade's bank partners. Avant offers loans for borrowers with fair credit. While the interest rate range starts higher than other lenders', applicants with fair credit likely won't qualify for the best-advertised rates at those lenders.

Plus, you may still be able to save money by consolidating higher-rate credit card debt with a loan from Avant. Avant branded credit products are issued by WebBank.

APR ranges from 9. Loan lengths range from 12 to 60 months. Administration fee up to 9. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors.

Minimum loan amounts vary by state. A partial prepayment does not trigger a refund of any administration fee amount. Borrower recognizes that the Administration fee is deemed part of the loan principal and is subject to the accrual of interest.

See New Mexico consumer brochure for common terms and definitions and regulations around rates and fees. Θ Credit score calculated based on FICO ® Score 8 model. Your lender or insurer may use a different FICO ® Score than FICO ® Score 8, or another type of credit score altogether.

Learn more. Advertiser Disclosure: The offers that appear on this site are from third party companies "our partners" from which Experian Consumer Services receives compensation. This compensation may impact how, where, and in what order the products appear on this site. The offers on the site do not represent all available financial services, companies, or products.

Credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any offer.

The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The federal government offers several consolidation options for people with student loans, including direct consolidation loans through the Federal Direct Loan Program.

The new interest rate is the weighted average of the previous loans. Consolidating your federal student loans can result in lower monthly payments by stretching out the repayment period to as long as 30 years. However, that can also mean paying more in total interest over the long term. Private loans don't qualify for this program, although you may be able to consolidate them with another private loan.

A consolidation loan may help your credit score in the long term. By reducing your monthly payments, you should be able to pay the loan off sooner and reduce your credit utilization ratio the amount of money you owe at any given time compared to the total amount of debt you have access to.

This, in turn, can help boost your credit score, making you more likely to get approved by creditors and for better rates. However, rolling over existing loans into a brand new one may hurt your credit score.

Credit scores favor older debts with longer, more consistent payment histories. Borrowers must meet the lender's income and creditworthiness standards to qualify for a new loan. For example, for a debt consolidation loan, you may need to provide a letter of employment, two months' worth of statements for each credit card or loan you wish to pay off, and letters from creditors or repayment agencies.

Debt consolidation could temporarily affect your credit score negatively because of a credit inquiry, but it can help your credit score in the long term if you use it correctly. Most people who make their new payments on time find their credit score increases significantly as they avoid missing payments and decrease their credit utilization ratio.

Consolidating debt could potentially lead to you paying more in the long run, particularly if you consolidate credit card debt but then continue to use the cards you paid off.

There may also be a minor, short-term ding to your credit score. The best way to consolidate your debt will depend on the amount you need to pay off, your ability to repay it, and whether you qualify for a relatively inexpensive loan or credit card.

Fortunately, you have a number of options. Not to be confused with debt consolidation, debt settlement aims to reduce a consumer's financial obligations rather than the number of creditors they have.

Consumers can work with debt-relief organizations or credit counseling services to settle their debts. These organizations do not make actual loans but try to renegotiate the borrower's current debts with creditors.

Debt consolidation can be a useful strategy for paying down debt more quickly and reducing your overall interest costs.

You can consolidate debt in many different ways, such as through a personal loan, a new credit card, or a home equity loan. Consumer Financial Protection Bureau. Federal Student Aid. Department of Education, Federal Student Aid. Federal Trade Commission FTC.

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You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings , which can also be found in the footer of the site. Table of Contents Expand. Table of Contents. How Debt Consolidation Works. An Example of Debt Consolidation.

Risks of Debt Consolidation. Types of Debt Consolidation Loans. Debt Consolidation and Credit Score.