Debt Consolidation — May 2026

One Payment. One Rate. Stop the Cycle.

Juggling multiple debt payments costs you more in interest and stress. Consolidate into one fixed monthly payment and start making real progress toward being debt-free.

Compare Consolidation Loans Top Picks
~$1,400
Avg. Annual Savings
6.99–35.99%
APR Range
2–7 yrs
Term Range
Advertiser Disclosure: CredenTree may receive compensation when you click on partner offers. Compensation does not influence editorial recommendations. Learn more
How It Works

How Debt Consolidation Works

Three simple steps to combine your debts and reduce what you pay each month.

1

Compare Lenders

Use our comparison tool to find lenders offering rates below your current average. Check your rate with a soft pull — no credit score impact.

2

Apply and Get Funded

Submit a formal application with your chosen lender. Most approvals happen within 24 hours, with funds arriving 1–5 business days after approval.

3

Pay Off Your Debts

Use the loan to pay off your existing debts in full. Then make one fixed monthly payment to your new lender until the balance is cleared.

Best Consolidation Loans
Editor picks ranked by APR, loan range, and borrower accessibility. Updated monthly.
→
Compare Loan Options
Explore unsecured loans, home equity options, and more to find the right fit for your debt.
→
FAQ

Debt Consolidation Questions Answered

Debt consolidation combines multiple debts — credit cards, medical bills, other loans — into a single loan with one fixed monthly payment and ideally a lower interest rate.
Applying for a consolidation loan causes a temporary hard inquiry. However, paying off revolving credit card balances can improve your credit utilization ratio and boost your score over time.
Look for an APR lower than your current average rate. If your credit cards are at 22% APR and you qualify for 12% on a consolidation loan, that is a meaningful saving.
You can consolidate credit card debt, medical bills, personal loans, payday loans, and other unsecured debts. Mortgages and auto loans are typically excluded.
In most cases, yes. Debt consolidation preserves your credit history and avoids the long-term consequences of bankruptcy. However, if debts are unmanageable, consult a financial advisor.