Guide

Compare debt consolidation

What is Debt Consolidation?

Debt-consolidation is a way to combine all your credit card debts, personal and car loans and other debt into one easier to manage loan, ideally with a lower APR. Check out our full list of debt consolidation products here.

We also recommend before doing any debt consolidation to check out Score Master they help up your credit score so your loan could be cheaper. 

How does debt consolidation work pros and cons?

How does debt consolidation work?

Your new lender will pay back all your loans, add up the entire value of this loans possibly charge a fee to do so and then set out new payment terms including payment frequency and days and a new interest rate. Once you're happy with the new terms your new loan will be issued and you'll make one payment instead of multiple payments to your new lender.

Pros of debt consolidation?

1. You'll repay your debt sooner

Just the process of getting all your debt into one place makes it easier to see an end to debt payments. Typically credit card debt is expensive and has no end date so this should help define a deadline (as the lender will set monthly payback amounts and a timeframe.)


2. Easier finances

It's easier to manage one payment than multiple payments with a multitude of dates, it's also easier as the amount is the same each month so you can easily budget for that set amount, given there is only one date it also means you're less likely to make a late payment and have to pay the fees associated with a late payment.


3. Cheaper interest rates

If a lot of your debt is credit card debt, this is typically very expensive with fees and interest at an average of 16%. The average consolidation loan is around 10-12% based on your credit score and can even cheaper if you have a good job and credit.


4. Improves your credit score

It's true that the initial debt consolidation loan may lower your credit score since it requires a hard credit pull (basically a credit check.) However over the life of the loan your credit will improve as you're more likely to make on time payments. Payment history is a big part of your credit score, so paying bills on time significantly raises your score.


Cons of debt consolidation?


1. It won’t solve all your financial problems

Just consolidating debt without being able to pay it down or avoid more debt won't help by itself. We recommend also budgeting if you haven't before to stay within your means. There are plenty of great budgeting apps out there like YNAB, Mint and many others or you can go at it the old school way using a Google Doc or Quip. 


2. There may be some upfront costs

Some debt consolidation loans come with fees. These may include:

  • Loan origination fees
  • Balance transfer fees
  • Closing costs
  • Annual fees

Our list of debt consolidation loans should help you work out these costs, check it out here.

3. You may pay a higher interest rate

If your credit score is a low then the rate could be higher than the personal loans you may have got with a better credit score. Again if it's mostly credit card debt you're consolidating then it is likely your interest rate will be lowered, it's very dependent on the loans you want to consolidate and your credit score before you took them out and now. The term of the loan also changes the interest you pay, a longer term loan looks cheaper as the weekly or monthly payment is cheaper but longer term you'll pay more.



Debt consolidation Ohio

There are a number of debt consolidation offerings for those living in Ohio:

Payoff
Marcus
Lightstream
Sofi
Upstart
Lending Club
Best Egg
Avant
Discover
Penfed

See the full list here.

Debt consolidation ct

There are a number of debt consolidation loans for those living in Connecticut:

Prosper
Wells Fargo
Discover 
One Main Financial 
Payoff
Marcus
Lightstream
Sofi 
Upstart
Lending Club
Best Egg
Avant
Discover
Penfed

See the full list here.

Debt consolidation Hawaii

Debt consolidation loans Hawaii:

There are a number of debt consolidation loans for those living in Hawaii:

Prosper
Wells Fargo
Discover
One Main Financial
Payoff
Marcus
Lightstream
Sofi
Upstart
Lending Club
Best Egg
Avant
Discover
Penfed

See the full list here.

Debt consolidation Maine

Debt consolidation loans Maine:

There are a number of debt consolidation loans for those living in Maine:

Prosper
Wells Fargo
Discover
One Main Financial
Payoff
Marcus
Lightstream
Sofi
Upstart
Lending Club
Best Egg
Avant
Discover
Penfed

See the full list here.

What lenders should I beware of?

They are a number of lenders out there that send pre approved mailers, be wary of any company that sends these out. As often they are advertising companies not lenders, that show loan prices that are much lower than they can actually get for you.

Be wary of the following lenders:

Hornet Partners, Dutchess Partners, Credit9, Centurion Financial, Nickel Advisors, Pebblestone Financial, Lafayette Funding and Stonedale Partner.



Minimum Credit Score
680
Origination Fee Minimum
0
Maximum Interest Rate
0.19
Maximum Loan Term Months
84
Minimum Interest Rate
0.06
Minimum Loan Amount
5000
Maximum Loan Amount
100000
Minimum Loan Term Months
36
Origination Fee Maximum
0
Late Payment Fee
0
Eligibility
["U.S. citizen/permanent resident with SSN", "immigration/visa holder"]

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SoFI personal loans for credit card debt consolidation provide competitive interest rates and loan amounts in the range of 5.99% to 18.83% and $5,000 to $100,000, respectively. SoFi loans are suitable for U.S residents with FICO scores above 680 that are looking to consolidate their debt into one bill for a term of 36 to 84 months.

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Minimum Credit Score
600
Origination Fee Minimum
0.01
Maximum Interest Rate
0.36
Maximum Loan Term Months
60
Minimum Interest Rate
0.11
Minimum Loan Amount
1000
Maximum Loan Amount
40000
Minimum Loan Term Months
36
Origination Fee Maximum
0.06
Late Payment Fee
15
Eligibility
["U.S. citizen/permanent resident with SSN"]

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LendingClub personal loans for debt consolidation are best for people with fair credit and who may benefit from joint loan options. U.S. residents can receive loan amounts up to $40,000 and can expect to pay an interest rate in the range of 10.68% to 35.89%.

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Minimum Credit Score
600
Origination Fee Minimum
0
Maximum Interest Rate
0.36
Maximum Loan Term Months
60
Minimum Interest Rate
0.09
Minimum Loan Amount
1000
Maximum Loan Amount
50000
Minimum Loan Term Months
36
Origination Fee Maximum
0.08
Late Payment Fee
15
Unavailable In States
["West Virginia", "Iowa"]
Eligibility
["U.S. residential address"]

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UpStart offers personal loans for debt consolidation with a focus on lending to consumers with little credit history who are seeking fast funding. With credit scores 600 or above, U.S. residents can receive loans from $1,000 to $50,000 at fixed interest rates for 3 or 5 year loan terms. While these loans are accessible to many borrowers, UpStart does charge an origination fee.

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