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Compare debt consolidation loans

Simplify your debt payments into one with lower rates and better terms.

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A debt consolidation loan can help you move multiple debts into one personal loan — giving you one monthly repayment and a potentially lower rate or better terms. But it’s not right for everyone. If you’re struggling with more debt than you make in a year or can’t make changes to your spending habits, you might want to consider other debt relief options.

Our top pick: Upgrade Personal Loans*

  • Min. Credit Score Required: 620
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $50,000
  • APR: 7.99% to 35.89%
  • Requirements: At least 18 years old, US citizen or permanent resident, verifiable bank account, valid email address
  • Flexible loan options
  • No prepayment penalty
  • Quick turnaround

Our top pick: Upgrade Personal Loans*

Affordable loans with two simple repayment terms and no prepayment penalties.

  • Min. Credit Score Required: 620
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $50,000
  • APR: 7.99% to 35.89%
  • Requirements: At least 18 years old, US citizen or permanent resident, verifiable bank account, valid email address
Promoted

Compare debt consolidation loans

Updated August 19th, 2019
Name Product Filter Values APR Min. Credit Score Max. Loan Amount
5.34% to 35.99%
Good to excellent credit
$100,000
Get personalized rates in minutes and then choose a loan offer from several top online lenders.
3.99% to 35.99%
500
$100,000
Quickly compare multiple online lenders with competitive rates depending on your credit.
5.99% to 17.66%
680
$100,000
No fees. Multiple member perks such as community events and career coaching.
5.99% to 29.99%
640 FICO®
$35,000
A prime lender with multiple repayment methods.
6.95% to 35.89%
640
$40,000
A peer-to-peer lender offering fair rates based on your credit score.
3.84% to 35.99%
550
$100,000
Get connected to competitive loan offers instantly from top online consumer lenders.
7.99% to 35.89%
620
$50,000
Affordable loans with two simple repayment terms and no prepayment penalties.

Compare up to 4 providers

How do debt consolidation loans work?

A debt consolidation loan works by moving all of your debts to one place with one monthly repayment. It’s a personal loan that you use to pay off your credit card balance and other debts, which then you then repay at the rate and terms of your new loan. Typically you can borrow between $5,000 and $50,000 with rates from 5% to 36% APR and terms from 3 to 7 years.

A debt consolidation loan can help you manage your repayments and create a pathway out of debt if you’re used to just making the minimum monthly payment. It can also help you save, since personal loans tend to come with lower rates than credit cards. It’s one of the most popular reasons for taking out a personal loan.

How much can I save?

Use the debt consolidation calculator below to see estimates of how much you could save and what your monthly payment could be.

Debt Consolidation Savings Calculator

Calculate how much you could save by consolidating your debt

Your current balances
1)Debt amountInterest rate
$
%
2)Debt amountInterest rate
$
%
3)Debt amountInterest rate
$
%
Total monthly payments
$
Add another balance
New loan terms
Loan length in years
Years

Fill out the form and click “Calculate” to see your estimated savings and new monthly payment.

or

Compare debt consolidation loans now

You’ll save an estimate of !

Before ConsolidationAfter Consolidation
Balance$$
Interest rate%9%
Year(s) to pay off~
Monthly payment$$
Total interest paid
Total balance paid

You currently have a total debt balance of $ with an average rate of %. By consolidating them into a new loan at 9% APR with a -year term, you’d pay approximately $ per month. Your estimated total savings would be .

Your total monthly payments is not enough to cover the interest. Your loan(s) will never be paid off.

Compare debt consolidation loans now

Am I eligible?

You generally need to meet the following criteria at a minimum to get a debt consolidation loan:

  • 18 or older
  • US citizen or permanent resident
  • Checking or savings account
  • No bankruptcies or foreclosures

The most competitive deals are available to borrowers with good or excellent credit and a low debt-to-income ratio (DTI). That means you generally need a credit score of 670 or higher and make monthly debt repayments worth less than 43% of your monthly income.

How do I get a debt consolidation loan?

To get a debt consolidation loan, follow these steps:

  1. Apply for a personal loan with a lender.
  2. Select “debt consolidation” as the purpose on your application.
  3. Wait for the lender to transfer your approved funds to your bank account
  4. Use the funds to pay off open credit card accounts, medical bills — even other loans.

After paying off your debts, you’re left with one loan to repay at the fixed or variable rate and repayment terms you signed up for with your new lender.

Pros and cons of using a debt consolidation loan

Pros

  • One payment. Pulling together all of your balances into one place can relieve the hassle that comes with managing multiple monthly repayments.
  • Potential overall savings. When you consolidate to a loan with a lower APR, you can save money on unnecessary interest across multiple loans and credit cards.
  • Earlier payoff. Depending on your term and APR, you might find that you’re able to pay off your overall debt more quickly than by keeping them separate.

Cons

  • No intro period. Unlike balance transfer credit cards, these loans don’t offer low or 0% interest intro periods.
  • Temptation to spend. With your credit cards and general cash flow freed up, you could be tempted to shop, thereby adding to your debt.
  • Does not eliminate debt. By consolidating your debt, you’re simply shifting existing balances to a new form — albeit one that can save you money and time.

How much will a debt consolidation loan cost me?

Ideally, a debt consolidation loan won’t cost you anything you weren’t already going to pay in interest with your existing loans. While some debt consolidation loans come with origination fees — usually 1% to 5% of your loan amount that’s often deducted before you receive the money — it’s possible to find a consolidation loan offering no upfront fees.

Consider the APR

When weighing consolidation loans, your APR and monthly repayments are two other costs to consider. Typically, you need to have excellent credit and a low debt-to-income ratio to qualify for the lowest APRs.

Consider the loan term

You might be concerned about immediate costs, however. In that case, a loan with a longer loan term could meet your needs. While you’ll end up paying more in the end because your interest accumulates over a longer term, your monthly repayments can be significantly lower than with a shorter term.

Balance transfer credit cards vs. debt consolidation loans

Balance transfer credit cards can offer exciting perks, like 0% interest for a year or more on transferred balances. But you face a high revert APR if you’re not able to pay off your debt within the intro period.

A balance transfer credit card could be a suitable way to consolidate debt if you’re certain you’ll pay off your consolidated balance within a year. If you need more time, a debt consolidation loan could be a better deal because the interest rate is lower.

Keep in mind that getting a balance transfer credit card will add another account to your credit utilization ratio, so you’ll want to consider the limit you’re approved for. On the other hand, debt consolidation loans won’t be added to your credit utilization ratio.

Deeper dive into balance transfer credit cards vs. debt consolidation loans

Case study: Russell consolidates to save his budget

Imagine this scenario: Russell is carrying two credit cards — one that he’s nearly maxed out to pay emergency bills and another filled with general spending — along with a year-old medical bill that wasn’t covered by his insurance.

With a new job and a determination to get his debt under control, Russell looks into a debt consolidation loan.

Original credit accounts

Credit card 1Credit card 2Medical billTotal
APR22.8%15.2%5%
Balance$5,000$2,000$600$7,600
Monthly payments$280$100$10$390
Total interest$1,349.51$320.92$91.87$1,762.30

Consolidated debt

After consolidation
APR9%
Balance$7,600
Monthly payment$241.68
Total interest$1,100.40

Russell saves $661.90 by consolidating his debt to a three-year term personal loan offering a fixed 9% APR.

Steps to take after getting a debt consolidation loan

  • Sign up for autopay. Some lenders offer an interest rate discount for borrowers who register to have automatic repayments withdrawn from their account each month. Plus it can help you avoid late fees.
  • Learn how to budget. Budgeting can help you avoid needing a debt consolidation loan again by helping you manage your spending.
  • Build an emergency fund. Most Americans can’t afford a $400 emergency expense. Having at least six months of personal expenses saved up can help you avoid going into debt again when the unexpected happens.

Bottom line

A loan could help you consolidate multiple debts into one monthly repayment with lower rates or better terms. But beware of the temptation to spend more now that your credit cards are freed up.

Think a consolidation loan is right for you? Compare multiple providers to find the best one for your financial situation.

Want to learn more about how to manage your debt? Check out our tips on managing five different types of debt. Or browse our debt consolidation guide for other options available.

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