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Best Debt Consolidation Loans September 2025
Start your path to a debt-free life
Take control of your financial well-being with the top debt consolidation loans. Apply online today and start building a plan to pay off your debt.
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Updated September 2025
Best Debt Consolidation Loans
September 2025
Apply online today and start building a plan to lower your interest rate, decrease your monthly payments and pay all your credit card bills in one installment.
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Updated September 2025
Best Debt Consolidation Loans
September 2025
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Updated September 2025

Filter the best options for you:

1
Editor's Choice
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8.0
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Very Good
Scores are calculated based on:
Brand Performance
Based on data insights
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8.7
Customer Engagement
Based on click-share
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7.5
Products & Offerings
Based on our
editorial analysis
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8.2
8.0
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Very Good
Scores are calculated based on:
Brand Performance
Based on data insights
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8.7
Customer Engagement
Based on click-share
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7.5
Products & Offerings
Based on our
editorial analysis
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8.2
No upfront fees
  • Best for debt above $15K
  • Free savings estimate
  • High customer satisfaction
Get My Rate
Visit ClearOne Advantage
2
Our Pick for Debt Under $10K
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8.4
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Very Good
Scores are calculated based on:
Brand Performance
Based on data insights
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9.9
Customer Engagement
Based on click-share
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7.5
Products & Offerings
Based on our
editorial analysis
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9.0
8.4
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Very Good
Scores are calculated based on:
Brand Performance
Based on data insights
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9.9
Customer Engagement
Based on click-share
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7.5
Products & Offerings
Based on our
editorial analysis
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9.0
Compare rates for debt consolidation
  • Best for debt above $1K
  • Simple loan process
  • Superb customer service
Compare Between Top Lenders
Use this side-by-side comparison table to help you find the right lender.
ClearOne Advantage
LendingTree
ClearOne Advantage
LendingTree
Features
ClearOne Advantage
LendingTree
8.0
8.4
BBB Rating
NR, accredited
A+, accredited
Min. Debt Amount
$15,000
$1,000
Loan Term
24-60 months
12-144 months
In Business Since
2007
1998
Customer Service
Phone & email
Phone & email
Our Top Pick
Best Overall
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8.0
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Very Good
Scores are calculated based on:
Brand Performance
Based on data insights
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8.7
Customer Engagement
Based on click-share
default
7.5
Products & Offerings
Based on our
editorial analysis
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8.2
8.0
info icon
Very Good
Scores are calculated based on:
Brand Performance
Based on data insights
default
8.7
Customer Engagement
Based on click-share
default
7.5
Products & Offerings
Based on our
editorial analysis
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8.2
No upfront fees
  • Best for debt above $15K
  • Free savings estimate
  • High customer satisfaction
2,528,479
people compared debt consolidation loans with
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How We Score
Our Top 3 Picks
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ClearOne Advantage
Read Review
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LendingTree
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Common Mistakes to Avoid When Consolidating Debt
Choosing the Right Debt Consolidation Option for You
Understanding Debt Consolidation

What is a debt consolidation loan and how does it work?

Debt consolidation loans combine multiple high-interest debts, such as credit cards, payday loans, or medical bills, into one new loan with a single monthly payment. Consolidating debt with a loan can reduce stress, lower total interest paid, and simplify finances. It's a smart solution for those juggling many payments or trying to escape the debt cycle.

Why are debt consolidation loans relevant right now?

With U.S. consumer debt hitting record highs, many Americans face mounting financial pressure. According to the Federal Reserve, average credit card interest rates are currently above 20%, which makes paying off credit card debt considerably more difficult and expensive. Consolidation loans help by consolidating all existing loans into one new one, typically with a much lower rate.

Consumers can apply for debt consolidation loans with a range of online lenders that offer competitive interest rates, flexible repayment terms, and other perks. Other debt consolidation programs may be available through nonprofits and government agencies.

What are the benefits of using a debt consolidation loan?

Debt consolidation loans offer several meaningful advantages for borrowers trying to regain control:

  1. Lower interest rates: Where the average credit card interest rate is well over 20%, Federal Reserve data shows the average 24-month personal loan rate is around half of that.
  2. Simplified repayment: Debt consolidation loans reduce your monthly debt payments from several to just one.
  3. Improved credit score: Paying off credit card debt with a debt consolidation loan can lower your credit utilization ratio, thus boosting your credit score.
  4. Reduced stress: Not having to juggle several loan payments each month can reduce financial stress.
  5. Faster payoff: Debt consolidation loans come with set repayment terms that let you know exactly when you'll become debt-free.

What debt relief options exist for veterans, nurses, teachers, and medical workers?

Some profession-specific programs support debt relief and consolidation, including the following:

  • Veterans may qualify for VA-backed loans and military-specific repayment plans.
  • Nurses and healthcare workers could access medical debt consolidation and nonprofit forgiveness options.
  • Teachers benefit from loan forgiveness programs and tailored debt management plans.
  • Military personnel may access special financial protections, grants, or hardship loan plans.

What are the most common types of debt consolidation programs?

Debt consolidation can take place in many different forms, including the following:

  • Personal loans: Personal loans have fixed interest rates, fixed monthly payments, and set repayment terms that do not change.
  • Balance transfer credit cards: Credit cards with intro APR offers extend 0% APR on purchases, balance transfers, or both for a limited time.
  • Home equity loans or HELOCs: These options require home ownership and strong credit, and they let you borrow against the equity you have in a property.
  • Nonprofit debt management programs: These structured plans can reduce interest and centralize payments.

How do I apply for a debt consolidation loan?

Apply for a debt consolidation loan with the following steps:

  • Step 1: Assess total debt: Figure out how much debt you want to pay off across existing accounts you have, which may include credit cards and other loans.
  • Step 2: Compare lenders: Compare multiple debt consolidation loans based on their interest rates, fees, and terms. Check for origination fees, which are common among personal loans.
  • Step 3: Submit your application: Complete a loan application with the requested information, which will likely include your income, credit history, and debt documentation.
  • Step 4: Review the loan offer: Make sure you understand the loan's interest rate, fees, repayment term and monthly payment. Read over the fine print in its entirety before you accept the offer.
  • Step 5: Use funds to pay off existing debt: Once your debt consolidation loan is funded, you should immediately pay off the debt balances you want to consolidate. From there, you'll make the agreed-upon monthly payments on your new loan balance.

What mistakes should I avoid with debt consolidation loans?

Common errors that reduce the value of debt consolidation include:

  • Not comparing offers: Compare loan offers across multiple companies to get the best deal.
  • Choosing the longest loan term: Longer repayment terms can help you lock in a lower monthly payment, but you'll pay more interest over time.
  • Failing to adjust spending habits: You have to change your spending habits if you want to avoid racking up more debt in the future.
  • Skipping the fine print: Hidden fees and clauses can add up, but you'll only know about them if you read over the fine print of debt consolidation loans before moving forward.

What loan programs and grants are available for debt relief?

Borrowers may qualify for:

  • Hardship loans for temporary relief
  • Debt relief grants for essential expenses
  • Loan forgiveness programs for public service workers
  • Nonprofit debt management plans to reduce interest and streamline payments

What are the most helpful debt management tools?

Effective tools and programs include:

  • Budgeting apps: Consider budgeting apps like You Need a Budget (YNAB) and EveryDollar to help you track your spending and avoid more debt in the future.
  • Credit counseling services: These services are offered through NFCC-certified nonprofits and can help you manage your finances.
  • Debt snowball or avalanche payoff methods: Both debt payoff strategies can help you organize repayment, save money on interest, and get out of debt faster.
  • Credit utilization trackers: These tools can help you monitor debt ratios and improve your credit score over time.

FAQs About Debt Consolidation Loans
Looking to improve your financial well-being and simplify your monthly payments? In addition to comparing some of the best debt consolidation loan companies, we've compiled some of the most commonly asked questions about debt consolidation loans to help you make an informed decision.
What is a Debt Consolidation Loan?
A debt consolidation loan is a financial tool that allows borrowers to combine multiple high-interest debts into a single, fixed-rate loan with one monthly payment. Debt consolidation loans often offer lower interest rates than credit cards, making them a practical option for managing debt more effectively. By consolidating debt into a structured loan, you gain better control over your finances and can work toward becoming debt-free on a predictable timeline.
How Does a Debt Consolidation Loan Work?
Borrowers typically have two primary options for consolidating debt:
  • Balance transfer credit card: A 0% interest balance transfer credit card allows borrowers to transfer multiple debts onto a single card and pay off the balance within a promotional period.
  • Debt consolidation loan: A fixed-rate personal loan designed for loan consolidation, where the borrower receives a lump sum to pay off existing debts and then repays the new loan in fixed monthly installments.

Choosing the best debt consolidation loan depends on your financial situation, credit score, and interest rates offered by different debt consolidation loan companies.
Does debt consolidation affect credit?
A debt consolidation loan can impact credit in both positive and negative ways:
  • Potential benefits: Making consistent, on-time payments can improve your credit score over time. Additionally, consolidating multiple accounts may help lower your credit utilization ratio.
  • Potential drawbacks: If a borrower continues to accumulate new debt after consolidating, their credit score could suffer. Late or missed payments on the new loan can also negatively affect credit scores.

Choosing the best debt consolidation loan depends on your financial situation, credit score, and interest rates offered by different debt consolidation loan companies.
What is the Best Debt Consolidation Loan Option?
The best debt consolidation loan for you will depend on several factors, including:
  • • Total debt amount and type of debt (credit cards, personal loans, medical bills, etc.).
  • •Financial history and credit score (affects loan eligibility and interest rates).
  • • Total debt amount and type of debt (credit cards, personal loans, medical bills, etc.).
  • •Repayment terms and interest rates (compare lenders for the best offers).

Borrowers should compare the best debt consolidation loans by reviewing different lenders, loan terms, and interest rates. Our comparison tool provides insights into the best debt consolidation loan companies, helping you find a lender that fits your needs.
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