Debt consolidation loans allow borrowers to roll multiple debts into a single new one with fixed monthly payments and, ideally, a lower interest rate.Compare loans for debt consolidation and learn about your options for consolidating debt.Debt consolidation won’t work if you have too much debt or haven’t fixed underlying spending issues.Almost all lenders require you to be 18 years or older and a legal U. resident with a verifiable bank account and not in bankruptcy or foreclosure.A higher score will qualify you for more loan opportunities, lower interest rates and better loan terms in the future. Several personal finance websites, including Nerd Wallet, offer a free credit score.Look for a site the offers educational tools such as a credit score simulator plus access to your credit report.
Below is a list of Nerdwallet’s top lenders for debt consolidation. If you’re borrowing money to pay off debt, a personal loan works best if you have a plan to tackle your debts.
A personal loan offers some advantages over balance transfer cards.
Fixed payments ensure you’ll pay off debt on a set schedule.
Creating a budget and starting a savings habit are small steps that could build a stronger financial future.
If you don’t have an immediate need for cash, work on building your credit score.
Critics of debt consolidation say it’s a “con” because it dupes you into thinking you’ve done something about your debt.