Americans are in an ocean of debt. In 2024 credit card debt surpassed $1 trillion for the first time. Inflation and rising interest rates are making matters worse, sinking Americans deeper into debt. The average household has more than $8000 in credit card debt.
If you are sinking in credit card debt and you need help, a debt consolidation loan is one way to pay off your high interest debt. By combining some, or all, of your credit cards into one loan with a lower interest rate, you simplify your debt and save money over time.
Debt Consolidation Loan Advantages
Here is what you should know about debt consolidation loans...Simplify Debt
Consolidate your debt by rolling credit card balances into one loan with a lower interest rate. You will make one affordable payment each month.
Save Money
A lower, fixed interest rate, means you will save money and pay off debt faster. And no more late fees, over-limit fees, or cash advance fees!
Start Now
The sooner you consolidate your debt, the more you will save. You can improve your credit score with consistent on-time payments.
The best debt consolidation loans March 2024
We research and review debt debt solutions to help you manage and pay off your debt. The best debt consolidation companies are listed below.
Accredited Debt Relief
Leading debt consolidation loan provider. Rated # 1.
Pros
- Pay only if they successfully reduce your debt
- A+ BBB rating and positive customer reviews
- Free consultation and savings estimate
Cons
- Pay only if they successfully reduce your debt
- A+ BBB rating and positive customer reviews
- Free consultation and savings estimate
Debt consolidation loan questions and answers
What is a debt consolidation loan?
A debt consolidation loan allows you to roll multiple existing debts, such as credit cards, personal loans, medical bills, etc., into one new fixed-rate loan. Instead of making several high payments to different creditors each month, you'll make just one payment on the new consolidation loan.
How does debt consolidation work?
With a debt consolidation loan, you'll receive a lump sum of cash that you'll use to pay off all of your outstanding debts. This leaves you with a single monthly payment on the new consolidation loan, ideally at a lower interest rate than you were previously paying. Over time, the interest savings help you get out of debt faster.
Who would benefit most from a debt consolidation loan?
Debt consolidation loans work best for those struggling with high amounts of outstanding debt from multiple sources, like credit cards with high interest rates. By consolidating, you can lock in a lower fixed rate, reduce monthly expenses, and simplify debt into one manageable payment. Those with good credit scores will qualify for the best consolidation loan rates.
What are the benefits of a debt consolidation loan?
For example, if you have credit card debt or multiple credit cards, you may want to consider a deb consolidation loan. Debt consolidation loans help you pay off credit card debt by combining all or some of your credit card balances into one account. We have identified some of the best debt consolidation loans for you already.
Will a debt consolidation loan affect my credit?
In the short term, a debt consolidation loan may cause a small, temporary drop in your credit score when you apply due to the hard inquiry on your credit report. However, making on-time payments on the new loan can help improve your credit over time. And by paying off credit card balances, you'll reduce overall debt utilization, which can boost your score.
What additional factors should I look for in a debt consolidation loan company?
When choosing a debt consolidation lender, look for the lowest possible interest rates and flexible terms to pay off the loan quickly. Fees like origination charges can vary, so compare the total costs as well. Check if lenders offer tools to help manage payments or free credit monitoring. Most importantly, choose a reputable, transparent lender with strong customer service.