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Debt consolidation loans
Last updated: July 12, 2026. Rates and terms change frequently — always check with the lender.
The short version
- Consolidation means one loan pays off several debts — usually credit cards — leaving you one fixed payment, ideally at a lower rate.
- It only saves money if the loan's APR (its yearly cost, including any origination fee) is below what your cards charge, and it only works if you stop re-running the card balances afterward.
- Prequalify with several lenders using a soft pull; consolidation is the most competitive corner of personal lending, so offers vary a lot.
- Watch the term: stretching payments lowers the monthly bill but can raise the total you pay. Run the numbers first.
- Consolidation is a loan you repay in full — it is not "debt relief" or "debt settlement." Companies promising to erase debt for a fee are a different, riskier thing entirely.
Listed for your consideration — not ranked or endorsed. Links go to each lender's own site.
| Lender | Type |
|---|---|
| Happy Money ↗ | Online lender |
| Best Egg ↗ | Online lender |
| SoFi ↗ | Online lender |
| LightStream ↗ | Direct (Truist) |
| Upgrade ↗ | Online lender |
| Achieve ↗ | Online lender |
| Happen Bank ↗ | Bank |
Struggling rather than just consolidating? All four ways out of card debt — including the nonprofit help nobody advertises — are explained on our education site: getting out of card debt ↗
Didn't find your fit? More options to consider
PenFed ↗ / Alliant ↗ / Navy Federal ↗ — Credit-union consolidation loans are often the cheapest option going and rarely advertised.
A balance-transfer card (0% intro) — with care — Can beat a loan if you can clear the balance inside the promo window; the rate jumps hard after it ends, and transfer fees apply. Only for disciplined payoff plans.
Nonprofit credit counseling — A counselor can set up a debt-management plan with reduced card rates, no new loan needed. Legitimate, low-cost help: CFPB's guide to credit counseling ↗.
Not the same thing: "debt relief" and "debt settlement" companies charge fees to negotiate down what you owe — a process with real credit damage and heavy federal rules. We don't list or recommend them. If you're underwater, start with nonprofit credit counseling instead.
Reviewed by AI and James Mills, retired financial planner with Professional Designations (25-year career), former FL mortgage and real estate broker. Lenders here are verified as real and currently operating; inclusion is not an endorsement. Rates and terms come from the lender — always check the source.