Personal loans
Debt consolidation loans, in plain English.
A practical guide to combining high-interest balances, comparing offers, and checking the numbers before you commit.
Check my rateWhat consolidation does
A debt-consolidation loan replaces several balances with one new loan. That can simplify your payment schedule, but it does not erase the debt. The new rate, fees, term, and payment determine whether the move helps.
Check the math before you apply
Add the balances you would move, then compare that number with the new loan’s total repayment. Include origination fees and any balance-transfer fee. Be careful with a low payment that stretches repayment for years; the monthly number is only one part of the decision.
A consolidation loan is not a reset button
If spending continues at the same level after the old balances are paid, the debt can return. A simple plan for the freed-up credit, automatic payments, and a small cash buffer can matter as much as the loan rate. Be skeptical of companies that promise an easy fix or ask for large fees up front.
Put the tradeoff on paper
Would consolidation lower the monthly pressure?
Compare your current balances with a single estimated loan payment before you apply.
Educational estimate only. Actual rates, approval, coverage, and savings depend on the offer or service available to you.
The Ledger
Read up before you decide
Read these before replacing several payments with a new loan.
Your questions, answered
Consolidation costs and tradeoffs
The decision
Does consolidation erase debt?
No. It replaces several balances with a new obligation. The rate, fees, term, and spending plan determine whether the move helps.
Costs and tradeoffs
Should I compare more than one offer?
Yes. Rates and fees can vary for the same borrower, so comparison is part of the decision.
Before your next step
Check the consolidation math
Bring your existing balances to the comparison.
Check my rateA few details to keep beside you.
- List each balance, rate and required payment.
- Compare total repayment over the same remaining term.
- Include the new loan’s fees and a plan for existing credit accounts.
