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Crush Your Debt. Reclaim Your Peace of Mind.

Drowning in multiple payments? Consolidate your debt into one simple monthly payment with rates as low as 5.99%. Save thousands and become debt-free faster.

One simple payment instead of many
Lower interest rates (5.99% - 24%)
Debt-free in 2-7 years
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What is Debt Consolidation? (And How It Can Save You Thousands)

Debt consolidation combines multiple debts into a single loan or payment plan, typically with a lower interest rate. Instead of juggling 5+ bills each month, you make one payment and save money on interest.

📋 How Does Debt Consolidation Work?

Debt consolidation simplifies your financial life by replacing multiple high-interest debts with a single, lower-interest payment. Here's the typical process:

  1. Debt Assessment: Calculate your total debt, current interest rates, monthly payments, and identify all creditors you owe.
  2. Choose Consolidation Method: Select the best option for your situation—debt consolidation loan, balance transfer, HELOC, or debt management program.
  3. Apply for Consolidation: Submit your application with income verification, debt details, and credit information to get approved.
  4. Pay Off Existing Debts: Use the consolidation loan or program to pay off all your individual creditors, closing those accounts.
  5. Make Single Payment: Pay one monthly payment (usually lower than your combined previous payments) until debt-free in 2-7 years.

Types of Debt You Can Consolidate

💳 Credit Card Debt

Average Rate: 18% - 29% APR

Consolidation Savings: 10% - 20% APR reduction

Best For: High-interest revolving debt

The most common debt to consolidate. Credit cards carry extremely high interest rates, making them ideal candidates for consolidation savings.

🏥 Medical Bills

Average Amount: $5,000 - $50,000

Collection Risk: High if unpaid

Best For: Avoiding collections

Medical debt can be consolidated to prevent collections, credit damage, and potential lawsuits. Often eligible for debt settlement or hardship programs.

💰 Personal Loans

Average Rate: 10% - 36% APR

Consolidation Potential: Medium to high

Best For: Multiple high-rate loans

If you have several personal loans with varying rates, consolidating them into one lower-rate loan can simplify payments and reduce interest.

🎓 Student Loans (Private)

Federal Loans: Special programs available

Private Loans: Can consolidate normally

Best For: High-rate private loans

Private student loans can be consolidated. Federal loans should use federal consolidation programs to preserve benefits like income-driven repayment.

🏪 Store Credit Cards

Average Rate: 24% - 30% APR

Common Amount: $500 - $5,000 per card

Best For: Multiple retail accounts

Store cards often carry the highest interest rates. Consolidating several retail cards can save hundreds monthly in interest charges.

🚗 Auto Loans (Refinance)

Typical Rate: 4% - 20% APR

Consolidation Type: Refinancing

Best For: High-rate auto loans

While secured by the vehicle, high-rate auto loans can sometimes be refinanced or included in debt consolidation for better terms.

🏡 Home Equity Debt

Use Home Equity: For consolidation

Rates: 6% - 12% APR (lower)

Risk: Home is collateral

You can use a HELOC or home equity loan to consolidate unsecured debts at lower rates, but your home becomes collateral.

📱 Payday & Title Loans

Typical APR: 300% - 600%+

Urgency: Highest priority

Best For: Breaking predatory cycles

Extremely high-interest predatory loans should be consolidated immediately to escape the debt trap and prevent financial ruin.

💵 How Much Does Debt Consolidation Cost?

Costs vary based on the consolidation method you choose. Here's what to expect:

Personal Loans

5.99% - 36% APR

Most flexible • 2-7 year terms
Balance Transfer Cards

0% intro (12-21 months)

Best for good credit • 3-5% fee
Debt Management Plans

$25-$75/month fee

Non-profit programs • Lower rates

💡 Average Savings: People who consolidate debt save an average of $3,000-$7,000 in interest charges and become debt-free 2-3 years faster than making minimum payments alone.

Key Takeaways

  • Consolidate multiple debts into one simple payment
  • Lower interest rates save thousands over time
  • Become debt-free 2-3 years faster on average
  • Simplify finances: 1 payment instead of 5-10
  • Stop juggling due dates and late fees
  • Improve credit score by paying on time consistently

📊 Debt Consolidation Stats

$5,200
average interest saved
2.5x
faster debt payoff
74%
reduce monthly payment

Ready to Consolidate?

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Debt Consolidation Options

Different debt situations need different solutions. Here are the main ways to consolidate debt:

💰

Debt Consolidation Loan

Get a personal loan to pay off all debts, leaving you with one fixed monthly payment

  • Fixed interest rate (5.99% - 36%)
  • Predictable monthly payment
  • 2-7 year repayment terms
  • No collateral required
💳

Balance Transfer Card

Transfer high-interest debt to a 0% APR card and pay it off during the promo period

  • 0% APR for 12-21 months
  • Save on interest completely
  • Best for good credit (670+)
  • 3-5% transfer fee
🏠

Home Equity Loan/HELOC

Use your home's equity to consolidate debt at much lower interest rates

  • Lowest rates (6% - 12%)
  • Large loan amounts available
  • Tax-deductible interest (consult CPA)
  • Home is collateral (risk)
📋

Debt Management Program

Non-profit credit counselors negotiate lower rates and create a single payment plan

  • Lower interest rates (0% - 11%)
  • Stop collection calls
  • Small monthly fee ($25-$75)
  • 3-5 year payoff plan

How to Consolidate Your Debt in 4 Simple Steps

Get out of debt faster with one simple process

1
60 seconds

Calculate Your Total Debt

List all your debts, interest rates, monthly payments, and creditors. Our tool helps you see exactly where you stand.

Free debt analysis See potential savings
2
Instant

Compare Your Options

See personalized debt consolidation offers from multiple lenders and programs. Compare rates, terms, and monthly payments.

No credit score impact Multiple offers instantly
3
1-7 days

Get Approved & Funded

Choose your best option and complete the application. Funds are deposited to pay off your existing debts automatically.

Fast approval process Automatic debt payoff
4
2-7 years

Make One Simple Payment

Pay one monthly payment instead of juggling multiple bills. Watch your debt disappear faster than you thought possible.

Lower monthly payment Debt-free sooner

Can You Consolidate Your Debt?

❓

Worried You Won't Qualify?

Debt consolidation isn't just for perfect credit. We help people in all situations:

  • Credit scores as low as 580
  • Currently behind on payments
  • High debt-to-income ratio
  • Recent late payments or collections
  • Limited income or unemployed
  • Previous bankruptcy (after discharge)
  • No home equity or assets

💡 The truth: There are debt consolidation options for almost everyone. Bad credit? Try debt management programs. No income? Consider debt settlement. We'll find your best path forward.

✅

You're a Great Candidate If You Have:

Debt consolidation works best for people with:

  • Multiple Debts: 3+ credit cards or loans
  • High Interest Rates: Paying 15%+ APR
  • Steady Income: Can afford monthly payment
  • Decent Credit: 580+ credit score helps
  • Manageable Debt: Under $100K unsecured debt
  • Commitment: Ready to stop using credit cards

Not sure which option is best for you?

Get a free debt analysis and personalized recommendations.

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⚠️ Important: Debt consolidation doesn't erase debt—it restructures it. Success requires commitment to stop accumulating new debt and making consistent payments. Results vary based on your financial situation and chosen method.

Debt Consolidation: Your Questions Answered

Will debt consolidation hurt my credit score?
Initially, it may cause a small temporary dip (5-10 points) due to the credit inquiry and new account. However, within 3-6 months, most people see their score improve significantly because they're making on-time payments, lowering credit utilization, and reducing overall debt.
What's the difference between consolidation and settlement?
Debt consolidation combines debts into one payment and pays creditors in full. Debt settlement negotiates with creditors to accept less than owed (typically 40-60%) and severely damages credit. Consolidation is for those who can afford payments; settlement is a last resort before bankruptcy.
How much can I save with debt consolidation?
Savings vary based on your current rates and consolidation method. On average, people save $3,000-$7,000 in interest charges over the life of the loan. For example, consolidating $25,000 at 22% APR to 10% APR saves about $13,000 in interest over 5 years.
Can I consolidate debt with bad credit?
Yes! While better credit gets better rates, options exist for all credit levels. Consider debt management programs (no credit check needed), secured loans, co-signers, or bad credit consolidation lenders. Rates will be higher (18-36%), but still lower than most credit cards.
Should I use my home to consolidate debt?
Home equity loans/HELOCs offer the lowest rates (6-12%) but put your home at risk. Only consider this if you have significant equity, steady income, and discipline not to accumulate new debt. Never use home equity for frivolous debt—only for substantial amounts ($20K+) you're committed to repaying.
What debts can't be consolidated?
Generally, you cannot consolidate: federal student loans (use federal programs instead), secured loans (auto/mortgage), tax debt, child support, alimony, or court-ordered restitution. You CAN consolidate: credit cards, personal loans, medical bills, private student loans, and most unsecured debt.
How long does debt consolidation take?
The process takes 1-7 days to get approved and funded. Most consolidation loans have 2-7 year terms. Many people become debt-free in 3-5 years with consolidation, compared to 15-20+ years making minimum payments on high-interest credit cards.
Will I save money if I consolidate debt?
Almost always, yes—IF you get a lower interest rate and don't extend your term too long. The key is to compare your current total monthly payment and interest to the consolidation offer. Most people save $200-$500 monthly and thousands in total interest. Use our calculator to see your specific savings.

Ready to Consolidate Your Debt and Take Back Control?

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