Debt consolidation · $200 – $5,000Three payments.
One. With an end date.
A consolidation loan doesn't make debt disappear — it gives it a schedule. One fixed payment, one lender, one month it's finally over. Here's how to tell whether it would actually save you money.
Paying minimums on the three cards: ≈17 years and ≈$11,000 in interest (3% minimums). Illustrative; your offer's APR may be higher or lower.
Would consolidating actually help?
Enter up to three balances and their APRs. We compare paying 3% minimums against one installment loan — and we'll say so if the loan is the worse deal.
What you owe now
One installment loan
Loans in our network run 3–24 months; the 36-month option is shown for comparison and may not be offered. Minimum-payment path assumes 3% of balance ($25 min) and no new charges. Estimates only.
From several balances to one schedule
- Add up what you'd consolidateCards, a medical bill, a store account. Up to $5,000 through lenders in our network.
- Request that amount, see offersSoft check. Each offer shows APR, fixed payment and total of payments — compare them with the calculator above.
- Funds land in your checking accountUsually the next business day. Some lenders can pay creditors directly; most send it to you.
- Pay the balances off the same dayIn full, to zero. Keep the confirmation emails.
- One payment, until the end dateAutopay the day after payday. Keep the cards open but empty.
When it helps — and when it doesn't
Consolidating helps when
- The loan APR is lower than your average card rate
- You've been paying minimums for a year or more
- Juggling due dates is causing late fees
- The fixed end date will keep you from re-borrowing
- The lender reports — paid-off cards + an installment account lift most scores
It doesn't help when
- The loan APR is higher than your cards'. With bad credit this is common. Then only the schedule helps — and a nonprofit plan may beat it.
- You'll run the cards back up. Then you've doubled the debt, not consolidated it.
- You owe more than $5,000. Partial consolidation can still work, but check the math.
- You can pay it off in six months anyway. The avalanche method costs nothing.
Four alternatives that may cost less
- A 0% balance-transfer card12–21 months interest-free if your credit qualifies; a 3–5% transfer fee applies.
- A debt management planThrough a nonprofit NFCC counselor: issuers often cut APRs to single digits. Small monthly fee, cards closed.
- A hardship rate from your issuerOne phone call. Many card companies lower the APR for 6–12 months if you ask.
- The avalanche methodMinimums on everything, every spare dollar at the highest rate. Free, and fastest mathematically.
Keeping it consolidated
The loan is the easy part. The next 24 months decide whether this was a fresh start or a bigger hole.
- →Leave the cards open, empty, and out of your wallet. Closing them hurts utilization; carrying them invites a swipe.
- →Autopay the day after payday. One missed payment can cost a late fee and a 30-day mark.
- →Round the payment up. $267 → $300 shaves months off and there's no prepayment penalty.
- →Build a $500 buffer before anything else. Most re-borrowing starts with a $300 surprise.
Asked before people consolidate
How does a debt consolidation loan work?
You take one installment loan, use it to pay off several balances — usually credit cards — and then make one fixed monthly payment to one lender until a set payoff date. The balances don't disappear; they move to a loan with a schedule.
Does consolidating save money?
Only if the loan's APR is lower than the average rate you pay now, or if the fixed schedule stops you paying minimums for a decade. With bad credit the loan APR can be as high as your cards', so compare total interest, not just the monthly payment. The calculator shows both.
Can I consolidate with bad credit?
You can apply — there is no minimum score. Expect a higher APR; the value then comes from the fixed end date rather than a lower rate. If your card APRs are below the loan offer, a nonprofit debt management plan may be the better route. Bad credit loans
Will consolidation hurt my credit score?
Short term there may be a small dip from the hard inquiry when you accept an offer. Medium term, paid-off cards lower your utilization and a reporting installment loan adds payment history — most people see their score rise within a few months, provided the cards stay paid down.
Should I close the cards after paying them off?
Usually not — closing them reduces your available credit and shortens your history. Keep them open, keep them empty, and consider removing them from your phone's wallet.
What are the alternatives?
A 0% balance-transfer card if your credit qualifies, a debt management plan through a nonprofit credit counselor (NFCC member), negotiating a hardship rate directly with the card issuer, or the avalanche method — paying the highest-rate balance first while keeping minimums on the rest. Alternatives
See your consolidation offers
Soft check, offers with the APR and total of payments printed, and a calculator above that will tell you if you shouldn't.
Checking your rate does not affect your credit score.