Compare Plans - DebtConsolidationQuestions

Reviews and ratings last updated on 3/25/2022

Score

Terms

★★★★★

Best for people who owe more than $7,500
No minimum credit score required
A+ rating with the Better Business Bureau
AFCC accredited member

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8.7

★★★★★

Free consultation and debt analysis
No upfront fees
A+ rating with the Better Business Bureau
AFCC accredited member

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8.6

★★★★★

No minimum credit score requirement
Cancel anytime with no fees
A+ rating with the Better Business Bureau
AFCC accredited member

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8.2

★★★★★

Easy, transparent application process
Check your rate in minutes
No prepayment penalties
Comparing rates won’t affect credit score

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7.7

★★★★★

Personal loans from $2,000 up to $50,000
Compare rates in minutes
A+ rating with the Better Business Bureau
Free financial health resources

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Debt Consolidation FAQ

If you have questions about debt consolidation, we have answers. Here are some answers to the most common questions that consumers have about consolidation.

What is debt consolidation?

Debt consolidation is a financial solution that combines all your unsecured debts into a single monthly payment at the lowest interest rate possible. By minimizing interest, you may be able to get out of debt faster, even though you may pay less each month because it pays off what you owe more efficiently.

How does it work?

Several financial solutions consolidate debt into a single monthly payment. The most common options are a do-it-yourself solution known as a debt consolidation loan and a professionally-supported consolidation program known as a debt management plan.

With a debt consolidation loan, you take out a new loan with a low fixed APR (interest rate). You use the funds you receive to pay off credit cards and other accounts. This leaves only the loan to pay back.

If you need professional help to consolidate, then you may be able to enroll in a debt consolidation program. You work with a debt consolidation service to set up a repayment plan and find a monthly payment you can afford.

Learn more about options to consolidate »

How does consolidation affect your credit?

Since consolidation pays back everything you owe, it should not generate negative information in your credit report when done correctly. As long as you complete a consolidation plan on time and keep up with the payments, it will generally have a positive effect on your credit.

See how specific options to consolidate may affect your credit »

How much does it cost?

The cost to consolidate varies based on which type of solution you choose. Debt consolidation loans have loan origination fees that vary based on the amount you borrow. A debt consolidation program has low administration fees that are set by the state where you live.

Know what you can expect to pay »

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Reviews and ratings last updated on 3/25/2022

Debt Consolidation FAQ