Debt Consolidation Loans

If you have multiple payments to different lenders, like credit cards or loans, you can apply for a debt consolidation loan to consolidate all your debt into one single lower monthly payment.

Debt Consolidation Loans

Compare top debt consolidation loans lenders to pay off your debt in one single lower monthly payment. Start now.
Debt Consolidation Loans
Loans for debt consolidations explained. What are they and how to get one? This quick guide covers everything you need to know.
Conquering your debt is easy once you find the right provider. Check out top debt settlement companies to see which one works best for you.
All data provided by the Home Mortgage Disclosure Act, at updated Dec, 19

What Is Debt Consolidation?

Debt consolidation – not to be confused with debt settlement – is just like it sounds. It’s a simple way to use a personal loan to consolidate multiple unsecured debts (like credit cards, medical bills, payday loans) into one monthly bill. For example, instead of making payments to multiple creditors, you make a single payment to the lender of the debt consolidation loan instead.

Because personal loan rates can be lower than credit card rates (which have an average of around 15% APR), it’s possible to save a lot of money in interest rate payments. By extension, this could help lower monthly payments and/or pay down debt faster.

The best way to compare apples to apples is to get rates that are personalized to your current situation. It’s really simple – almost like searching for a flight or hotel

Debt Consolidation Loans Pros

  • Potentially lower interest rates vs credit cards
  • Easy application process
  • Less risk since an unsecured personal loan isn’t tied to an asset
  • Funds usually come through quickly
  • Potential credit score increase

Debt Consolidation Loans Cons

  • Sometimes lenders charge origination fees. Double check the numbers & do a bit of “comparison shopping” to make sure you get the best offer available.
  • Teaser rates require a high credit score (somewhere between 780-850). Note that it’s pretty easy to get rates personalized to you.
  • There aren’t many options available (if at all) for credit scores below 600.

Consolidate your loans into one single monthly payment

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