What are debt consolidation loans?

Debt consolidation loans are generally for paying off high-interest debt. You might be able to consolidate multiple types of debt, including credit card debt, auto loans, home loans and even medical bills. Take a closer look at some common forms of debt you may be able to consolidate:

What is a consolidation loan & how does it work?

Consolidation is a popular debt relief method that borrowers use to help make their debt more organized and less expensive over time. Just like with other loans, each lender will offer different terms and conditions. However, finding the right consolidation loan may require a bit more heavy lifting when comparing lenders.

What is the difference between debt consolidation and a personal loan?

A debt consolidation loan is a type of personal loan. Some lenders offer loans specifically for consolidation, but they’re generally the same product. Both are fixed rate installment loans that can be used to consolidate a wide range of debts.

How does debt consolidation work?

Debt consolidation rolls multiple debts into a single account with one monthly payment. Consolidating debt might help save money on monthly payments, interest or both. Consolidating debt won’t erase it. A debt consolidation loan is a popular option to consolidate debts but not the only one. Looking for a low-interest card?