Best Debt Consolidation Loan Companies

We compared 17 brands and chose the top debt relief companies

  • Top overall
    NetCredit
    4.9(1,771)
  • Customer service
    Lending Tower
    4.6(137)
  • Fast funding
    Upgrade
    3.9(723)

Best Debt Consolidation Loan Companies

Our top 4 picks for debt consolidation loan companies

  1. Best overall: NetCredit
  2. Best for customer service: Lending Tower
  3. Best for fast funding: Upgrade
  4. Best for a long repayment term: LightStream
2024 Buyers Choice Award Winner
NetCredit
Max. loan amount
$10,000
Fastest funding time
Same business day
Max. repayment period
60 months

Reviewers consistently give NetCredit high marks across several important aspects of debt consolidation. Feedback revealed high satisfaction ratings for the NetCredit staff, particularly regarding service and punctuality. ConsumerAffairs reviewers also praise the company’s speedy service, often noting that employees responded quickly to inquiries and that funding arrived shortly after approval.

Pros

  • Fast service
  • High customer satisfaction rates
  • Helpful staff
  • Quick funding

Cons

  • No loans over $10,000
  • High APRs

NetCredit helps customers consolidate debt by offering personal loans and lines of credit. The maximum loan amount is low at $10,000, however, making it a better choice for those who need smaller loans. While rates vary by state, APRs typically range from 34.99% to 99.99%, which is on the higher end. Most approved customers receive their funds the next day or sooner.

To get a debt consolidation loan from NetCredit, you must be 18 or older and have the following:

  • Active email address
  • Valid personal checking account
  • Verified source of income
  • “The process was quick and easy. This my second time getting a loan and I will keep coming back in the future to get more loans. Their call center is very responsive and easy to work with. I’m going to recommend NetCredit to everyone I know for all their personal loans!” — Rodolfo in Arizona
  • “My experience with NetCredit has been phenomenal and easy! I was in need of an advance for the time being and with no hesitation they came through for me. The contract was clear and concise. I understood the terms and it was a fair agreement. It’s there for when I need it again.” — Darlisa in Michigan
  • “Honesty and transparency are top qualities I look for in good companies with integrity and personal customer service. I give them 5 stars.” — Joseph in Texas
3x Award Winner
Selected for having one of the highest satisfaction rates for Best Customer Service, Best Experience with Staff and Best Loan Process
Our pick for customer service
Lending Tower
Max. loan amount
$100,000
Fastest funding time
24 hours
Max. repayment period
60 months

Lending Tower receives notably high customer satisfaction ratings on our site. Many reviewers describe the company’s agents as “helpful” and “kind.” Reviewers also frequently praise the speed of service, with some customers reporting same-day loan approvals.

Pros

  • Outstanding customer service
  • High loan maximums
  • Quick funding

Cons

  • Limited information on the website
  • Not a direct lender
  • Terms depend on the lender you work with

Lending Tower works with a network of lenders to offer debt consolidation loans, including options for borrowers with poor credit. Instead of issuing loans directly, the company connects applicants to offers from a network of providers. After completing an online application, customers speak with a trained consultant who reviews available loan options. Terms may vary depending on the lender, but APRs start as low as 5.99%, and most applicants get funding within 24 hours of approval.

  • “Lending Tower is like an Easter egg basket full of different offers. … My experience with them was very positive, very efficient, and quick. The application was very easy. It didn't require a lot of information that I had already pulled. So, I was impressed with how simple it was. I was very pleased with the match that they got for me. … I would encourage others to contact Lending Tower and reach out about what offers they may have.” — William in Virginia
  • “Lending Tower saved my life. I live in Arizona and it was about 118. The AC was not working in that house. … Lending Tower took care of me the whole way. They put the money in my bank account and I was able to use it right away. I was just so happy and relieved.” — S in Arizona
  • “The lending process was easy, which was very nice. I called a representative, and he was very knowledgeable and kind. … The approval only took two hours too.” — Gretchen in Pennsylvania
Buyers Choice Award Finalist
Upgrade
Max. loan amount
$50,000
Fastest funding time
One business day
Max. repayment period
84 months

While some companies make promises about same-day funding, ConsumerAffairs reviewers say that Upgrade truly delivers. Most customers reported that funds reached their bank account within a couple of business days. Staff also received high marks for punctuality — if you encounter an issue receiving your money, it’s likely you’ll hear from an Upgrade agent promptly.

Pros

  • Automatic payments lower your APR
  • Fast funding
  • Long repayment lengths
  • Speedy customer service

Cons

  • Pricey origination fees
  • High maximum APR

Upgrade provides debt consolidation in addition to a variety of other financial services, like high-yield savings accounts and home improvement loans. The company bases your loan terms on your credit score, credit history and other factors. Debt consolidation loans at Upgrade are subject to an origination fee of 1.85% to 9.99%. APRs range from 7.99% to 35.99%, and you can lower your APR by opting into automatic payments.

  • “I found the process so easy and I was able to get a personal loan pay off my credit cards and now I pay less per month and will have it paid off quick. I am so happy I found Upgrade and will use them again. I don’t have a great credit score but now that I have paid off the high-interest credit cards my score is going up.” — Veronica in California
  • “My experience with Upgrade was seamless and QUICK! Within a matter of days, my credit cards were paid and the remaining balance was in my personal account. Every customer service representative I spoke with was professional, knowledgeable and friendly.” — Cheryl in Ohio
  • “Upgrade was there when I needed them most. Quick Cash to pay some bills without liquidating my sterling investment portfolio. Thanks Upgrade for all you do. I would recommend them to anybody who is in need of some quick cash when they are in a pinch. Their web site is intuitive and easy to use and their tech support is there when you need them.” — Christopher in California
Our pick for a long repayment term
LightStream
Max. loan amount
$100,000
Fastest funding time
Same business day
Max. repayment period
84 months

LightStream offers one of the longest repayment terms we’ve seen. To get an idea of how its maximum repayment term compares, keep in mind most debt consolidation companies cap repayment periods at 60 months. As of publishing, APRs start at 8.49% for borrowers with excellent credit — from there, they can go as high as 25.79%.

Pros

  • Automatic payments lower APRs
  • High loan maximum
  • Long repayment periods
  • Same-day funding

Cons

  • $5,000 loan minimum
  • Unclear credit requirements

LightStream offers debt consolidation loans and a range of additional financing services. Debt consolidation loan amounts range from $5,000 to $100,000, with repayment terms spanning 24 to 84 months. If you opt in to automatic payments, LightStream reduces your APR by 0.5%, which means those with excellent credit may qualify for rates as low as 7.99%.

  • “Lightstream could not be any more user friendly and customer driven! … They offer lots of repayment options and allow you to change payment time and amount whenever you need to make it more convenient.” — Julie in Florida
  • “They offered me a low rate with a reasonable monthly payment and were able to stretch it out for longer than most other banks we looked into.” — Connie in New Jersey
  • “The decision was prompt, and the funding was wired to my account exactly when I had been told to expect it. I would rate LightStream 5/5 for their commitment to their client, the competence displayed in their organization, and their reliability. They exceeded my expectations and I would not hesitate to recommend them to others.” — Victoria in Minnesota

Top Picks

See who reviewers like

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Debt consolidation loan buyers guide

If you're struggling with high-interest credit card debt and other bills, a debt consolidation loan can help you pay it off. This is a type of personal loan that helps consumers eliminate their credit card balances while paying down debt with a fixed interest rate and a single monthly payment. The often lower rates help individuals pay less in interest each month, which makes the debt repayment process more affordable.

Key insights

Debt consolidation loans can help you simplify your finances and save money on interest.

Jump to insight

When choosing a debt consolidation loan, it's important to consider factors like interest rates, fees and repayment terms.

Jump to insight

Debt consolidation may negatively impact your credit score, at least temporarily.

Jump to insight

What is a debt consolidation loan?

A debt consolidation loan involves taking on a new unsecured personal loan and using the funds for paying off multiple other debts. Ideally, the new loan should have a lower interest rate than the other debts getting paid off —  but this isn’t always the case, so be sure to compare costs before you commit.

With a debt consolidation loan, instead of managing multiple payments, you can streamline your monthly obligation into one loan payment.

How do debt consolidation loans work?

To get started with debt consolidation you’ll need to fill out an application with a bank or lender. If approved, the company will give you the cash to pay off your existing debts or it will pay them automatically. Then, you’ll get set up with your new debt consolidation loan, meaning you’ll only need to make one payment per month going forward.

According to financial planner Kyle McBrien, who works at Betterment, an online financial advice company, “Debt consolidation can be a helpful tool for consumers looking to overcome debt, since it helps them pay off multiple debts with a new loan that has a single monthly payment — often at a lower interest rate.”

McBrien says applicants need to be sure the new monthly payments do not impact their ability to cover their basic living expenses first, and they should factor in any fees they have to pay. He also recommends checking your credit score before you apply, or at least considering how your current credit standing will impact your interest rates.

Debt consolidation can be a helpful tool for consumers ... it helps them pay off multiple debts with a new loan that has a single monthly payment — often at a lower interest rate.
— Kyle McBrien, Betterment

Fortunately, almost all lenders in the personal loan space let borrowers "check their rate" online before filling out a full loan application. This step makes it easy for you to find out how much you could potentially borrow, the rate you would have to pay and the monthly payment options.

» LEARN MORE: Ways to improve your credit score

Debt consolidation costs

As with all loan types, the cost of your debt consolidation loan will vary based on the lender. Typical costs include the interest charged over the term of the loan and any origination or other fees the lender charges.

Can I get a debt consolidation loan with bad credit?

Yes, you can still get a debt consolidation loan with bad credit, but it’s more difficult. Your interest rates will be higher, which means you are less likely to save money.

How to get a debt consolidation loan

After finding a loan with a rate and monthly payment you’re comfortable with, you can move forward with a full loan application:

  • Submit application: You’ll need to provide information such as your Social Security number, date of birth, address, income, employer name and proof of address.
  • Receive funds: Once a loan application is approved, many lenders will deposit loan funds in an account as soon as the next business day.
  • Pay off debts: Some lenders will pay your creditors directly, which can help avoid payment mishaps during the debt consolidation process.

Debt consolidation loan pros and cons

Taking on a debt consolidation debt is a big financial decision and deserves careful consideration.

Pros

  • One monthly payment (versus several)
  • Fixed, predictable repayment schedule
  • Pay off debt sooner

Cons

  • Monthly payment may be high
  • Loan can have costly fees
  • May take longer to pay off debt

While it does offer numerous advantages, such as making your monthly payments more manageable and predictable, these loans have drawbacks too. Many are riddled with fees, and if you’re not careful, it may take you longer to pay off the debt thanks to higher interest rates or longer repayment terms.

» MORE: Pros and cons of debt consolidation

Debt consolidation loan alternatives

Debt consolidation is not right for everyone, and the numbers may not work if the interest rate is too high. With that in mind, McBrien said the best solution might simply be "reviewing your personal expenses and creating a tighter budget for yourself.”

However, there may be times when cutting expenses won't be enough to get out of debt. In that case, you can consider the following alternatives:

  • Use your home equity: McBrien recommends considering tapping into your home equity if you have some, either with a cash-out refinance, a home equity loan or a home equity line of credit (HELOC). "These strategies allow homeowners to leverage the equity they have built up in their home to create additional cash flow," he said.
  • Look into balance transfer cards: Some credit cards let consumers consolidate debt with 0% APR for a limited time, usually up to 21 months. While balance transfer fees apply, these offers can help you save on interest and pay down debt faster.
  • Work with a credit counselor: Most credit counseling agencies are nonprofits, and they can help you create a plan to pay off your debt without having to borrow more money.
  • Explore debt settlement options: Debt settlement companies help you settle your outstanding debts for less than you owe, although they charge fees for their services, and your credit score could suffer.

» MORE: Debt snowball method: pros and cons

FAQ

What is the difference between debt consolidation and debt settlement?

With debt consolidation, all of your debt is folded into one loan. You’ll still pay the total amount of debt you owe but in one monthly payment. With a debt settlement program, you (or a third-party company) attempt to reduce the total amount of debt you owe by negotiating with creditors.

Does taking out a debt consolidation loan hurt your credit?

When taking out any new line of credit, you may see a short-term effect on your credit score. However, taking out a personal loan for debt consolidation shouldn't have a long-term negative impact on your credit if you make your payments consistently and don’t default on the loan.

» RELATED: Does debt settlement hurt your credit?

Are debt consolidation companies legit?

There are many legitimate debt consolidation loan companies, including the lenders we ranked in this guide. Review our tips above for finding a reputable lender, and do your due diligence to better understand the results you can expect from a company.

Is there a limit to how much debt I can consolidate?

The limit to how much debt you can consolidate depends on the lender and your creditworthiness. Some lenders may have caps on loan amounts, while others may allow higher amounts. Factors like your income, credit score and debt-to-income ratio will influence the maximum amount you can borrow.

Methodology

To update our top picks, the ConsumerAffairs Research Team used a weighted scoring system that took into account both reviews from ConsumerAffairs users and specific company offerings we researched. We conducted sentence-by-sentence sentiment analysis of thousands of reviews on our site from Dec. 1, 2021, to Nov. 30, 2024, to identify the aspects people care about most — and which companies reviewers are happiest with for each aspect. For debt consolidation, these included:

  • Customer service 
  • Staff
  • Punctuality

We then carefully selected the most important offerings consumers should consider before choosing a debt consolidation and researched these offerings at each company:

  • Fastest funding time
  • Maximum loan amount
  • Maximum repayment period

The company with the highest score in each category’s uniquely weighted formula was given the “Our pick for” or “Best for” designation. In some cases where a single company received the top score across multiple categories, the company with the next-highest score was named the winner.

Get expert advice on debt consolidation loans

We asked experts how debt consolidation loans can help borrowers, what to consider before applying, and when they might be the most practical solution for managing debt.

Who are debt consolidation loans for?
Alessandro Rebucci

Alessandro Rebucci

Professor, economics, Johns Hopkins Carey Business School

Debt consolidation loans are for people who want to consolidate multiple high-interest debts into a single, more manageable and lower-interest loan. This option, when available, simplifies tracking payments and saves you money — lowering the overall interest rate on your balance.

Read their bio
Brent Clark

Brent Clark

Professor, business strategy and entrepreneurship, University of Nebraska Omaha

Debt consolidation loans only make sense for people who either want to simplify their life a little or want to lower their combined interest payments across all their debts (or both).

If you have many high-interest debts, such as credit card balances and medical bills, and are struggling to manage their payments, then debt consolidation might be a good idea for you. If you are having difficulty keeping track of a large number of different payments and end up paying late on some of them, your credit is going to suffer. Consolidating those into a single payment can be a time-saver and a credit-saver, and the potential to lower the amount of interest you pay is a clear advantage.

Read their bio
Scott Collins

Scott Collins

Professor, accounting, Penn State Smeal College of Business

First, we’re talking here about consolidating multiple loan payments into one single loan payment. We’re not talking about the consumer debt relief industry. With that said, it’s a bit of a misconception to suggest that personal debt consolidation loans are great for people who have a high amount of outstanding debt. It’s not necessarily the total amount of outstanding debt which makes a debt consolidation loan attractive. It’s the nature of the debt and the variance of the loan interest rates which can make a debt consolidation loan an attractive option for someone.

For instance, if someone is currently carrying balances on multiple consumer credit cards, each with a different variable interest rate, then consolidating these balances into one personal loan with a fixed (and presumably lower) interest rate can help them pay off these balances in a more predictable period of time.

Read their bio
How should borrowers determine if a debt consolidation loan is the right option for them?
Alessandro Rebucci

Alessandro Rebucci

Professor, economics, Johns Hopkins Carey Business School

First, a debt consolidation option has to be available. This is typically the case if credit card debt is contracted during periods of hardship (e.g., spells of unemployment or during crises), and once things improve — perhaps because of a new job — bank credit becomes available. Another possibility is when people refinance a mortgage in a cash-out refinancing operation. This is the best way to consolidate more expensive loans but presupposes that one has a good credit rating and owns a house.

Read their bio
Fan He

Fan He

Professor, finance, Central Connecticut State University

Debt consolidation is a good idea when you can qualify for a consolidation loan that offers a lower or equal overall interest rate. You should factor in associated expenses like origination and annual fees compared to the rates on your current debts slated for consolidation.

However, qualifying for lower interest rates often requires meeting high requirements, such as a good credit score, a reasonable debt-to-income ratio and credit card balances below a certain threshold. If a borrower is already overextended in debt, consolidation loans usually carry significant costs that make them not worthwhile and could potentially worsen the borrower’s financial situation. The major benefit of a consolidation loan is to allow the borrower to simplify debt management if they have multiple debt payments to keep track of; by establishing a single fixed monthly payment plan, it reduces mental load in managing debt.

Read their bio
Brent Clark

Brent Clark

Professor, business strategy and entrepreneurship, University of Nebraska Omaha

Make a list of all of your debts. For each, write down the debt amount and the interest rate on that debt. Then compare those rates to the rate you can get with a debt consolidation loan. If you are paying a higher interest rate on one or more of your debts than what you could get on a consolidation loan, then you should seriously consider it. If the dollar amount is small enough on those high-interest debts, it might not be worth the effort, especially if you can pay those specific debts off quickly. But if the dollar amount is significant, get some rate quotes on a consolidation loan, and go for it.

Read their bio
Scott Collins

Scott Collins

Professor, accounting, Penn State Smeal College of Business

First, understand that debt consolidation is not a predatory lending practice. Consolidating your personal debt is not the same as entering into a debt relief agreement, which is a practice where an agency negotiates on your behalf with lenders to reduce the amount you owe to those lenders. Debt consolidation combines the full balances of each of your personal loans by pooling them together into one single loan payment.

Next, know that debt consolidation is not intended to degrade your credit score. You might see an initial (and temporary) decrease in your credit score, but only because you submitted a loan application, and the submission of that application triggered a hard inquiry against your credit record. Any initial decrease that you might notice in your credit score as a result of consolidating your debt should be recoverable within a few months … after making on-time payments for your new consolidated loan and after your credit record reflects the full payment of the other debt that was consolidated into your new loan.

Read their bio
What recommendations do you have for someone taking out a debt consolidation loan?
Alessandro Rebucci

Alessandro Rebucci

Professor, economics, Johns Hopkins Carey Business School

Beware of the advisory fees involved. Make sure that the total interest payments due after consolidation are less than without consolidation. For example, an only slightly lower rate to be paid for a much longer period will result in a higher — rather than lower — debt burden.

Read their bio
Fan He

Fan He

Professor, finance, Central Connecticut State University

Before committing to a debt consolidation loan, it's important to explore other debt consolidation options with potentially lower costs, such as balance transfer credit cards. When assessing debt consolidation loans, it's also important not to be simply swayed by the promise of lower monthly payments. Some loans may offer an appealingly lower payment plan but at a significantly higher interest rate than your current debts, often achieved by using a longer repayment period. This can result in significantly higher total interest payments and, depending on your financial planning strategies, undermining rather than supporting your efforts toward effective debt management.

Read their bio
Brent Clark

Brent Clark

Professor, business strategy and entrepreneurship, University of Nebraska Omaha

  1. Request at least two quotes, though three or four would provide a more comprehensive comparison of rates.
  2. Don’t take out any new debt. The point of a debt consolidation loan is to get things under control. Stop accruing new debt or it will be pointless to do this.
  3. Pay on time every time.

Read their bio
Scott Collins

Scott Collins

Professor, accounting, Penn State Smeal College of Business

By taking advantage of a personal debt consolidation product, you might be able to secure a loan that consolidates, or pools, your multiple personal loan balances into one single loan payment. The interest rate on your new single loan payment might end up being lower than the weighted average interest rate for your (previously) multiple loan payments. And instead of worrying about multiple payment dates for each of your outstanding loans, you can achieve some peace of mind by only having to worry about one payment date for your new consolidated loan.

One key piece of advice is to shop around before formally applying for a personal debt consolidation loan. Know your credit score before you shop. Then you can view potential interest rates for your particular credit score before submitting a loan application — which will trigger a hard inquiry against your credit record.

Another key piece of advice is to consider what, if any, collateral the bank might be asking you to pledge against your proposed personal consolidation loan. The pledging of collateral might help to reduce the interest rate of your consolidation loan, but the risk that is introduced with a collateralized loan is something that you should consider before entering into such an agreement.

Read their bio
In what scenarios would a debt consolidation loan make the most sense?
Alessandro Rebucci

Alessandro Rebucci

Professor, economics, Johns Hopkins Carey Business School

[Debt consolidation loans makes sense] when changed circumstances like lower rates or higher income give you the opportunity to access better lending products. For example, secured borrowing against a new job paycheck might be significantly cheaper than credit card debt or unsecured loans.

Read their bio
Brent Clark

Brent Clark

Professor, business strategy and entrepreneurship, University of Nebraska Omaha

Debt consolidation loans are most likely to be helpful if you have been improving your credit score recently. If your credit is about the same as it has always been, it’s not as likely a new consolidation loan will be much of an improvement for your situation. That said, if you’ve made poor choices and have one or more debts with very high interest rates, even with bad credit, a debt consolidation loan could be an improvement.

Read their bio
Scott Collins

Scott Collins

Professor, accounting, Penn State Smeal College of Business

One key benefit of a personal debt consolidation loan is to reduce the number of debt payments that you are making each month. By consolidating multiple sources of debt into one loan, you then make only one payment — to one lender — instead of making multiple payments to multiple lenders. This can help reduce the stress involved with remembering to make payments to multiple lenders.

Another key benefit of a personal debt consolidation loan is the presumption that one fixed interest rate is more predictable than multiple variable interest rates. Especially if that single fixed interest rate ends up being lower than the weighted average of the other variable interest rates. So depending on the terms of the personal debt consolidation loan, you might be able to reduce your total monthly debt payment and increase — albeit slightly — your monthly cash flow. And regardless of the terms of the personal debt consolidation loan, you should be able to more accurately predict when the sum total of your currently outstanding personal debt will be paid off.

Read their bio

Not sure how to choose?

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