There is a way out of loan and credit card debt that doesn't involve sky-high interest rates. Review our best debt consolidation programs to help you climb out of debt.
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We evaluated debt consolidation lenders and debt relief services using a standardized set of criteria focused on cost, availability, usability, and customer experience.
Availability and eligibility
We reviewed where each company operates, state availability, eligibility requirements, and the types of debt covered, such as whether services apply to unsecured debts like credit cards and personal loans.
Rates, fees, and repayment flexibility
We compared APRs, interest rates, origination fees, and other costs. We also assessed repayment flexibility, including loan terms, prepayment penalties, hardship options, and features like direct creditor payment.
Online experience and customer support
We evaluated website clarity, application ease, and digital tools, as well as customer service channels, years in business, and consumer feedback from platforms like Trustpilot and the Better Business Bureau (BBB).
Consumer experience insights
We considered recurring themes from consumer discussions in online finance communities to better understand transparency, usability, and common borrower concerns.
Companies that performed well across most or all of these areas were considered for our Best of lists and sub-lists.
Here’s how top debt consolidation providers compare across services, availability, and requirements.
Provider | Debt Consolidation Option | Geographic Availability | Credit Score Requirement |
Freedom Debt Relief | Debt settlement alternative | 41 states | Not required |
National Debt Relief | Debt settlement alternative | 46 states | Not required |
JG Wentworth | Debt consolidation loans + debt relief referrals | 43 states | Not disclosed |
Accredited Debt Relief | Debt consolidation programs + loan referrals | 37 states | Not disclosed |
Achieve | Debt consolidation loans + debt relief | 39 states | ~620 for loans |
ClearOne | Debt settlement alternative | Limited availability | Not required |
Americor | Debt consolidation loans + debt settlement | All 50 states | Not required |
Pacific Debt Relief | Debt settlement alternative | Most states | Not required |
Consolidated Credit | Credit counseling + debt management plans | All 50 states | Not required– |
Upgrade | Debt consolidation loans | Most states | ~580 |
Lending Club | Personal debt consolidation loans | All 50 states | ~600 |
Reach Financial | Debt consolidation loans/credit card refinancing | Limited states | Not disclosed |
“When choosing a debt consolidation lender or settlement service, clarity is key. Look for plain language, no unexpected fees, and good consumer reviews. Always check their accreditation with such organizations as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).”
Freedom Debt Relief offers debt settlement services, meaning it’ll negotiate down the amount you owe your creditors and manage the repayment. It specializes in unsecured debt, like outstanding credit card balances, medical bills, and personal loans.
Freedom’s mobile app allows you to manage settlement offers, track repayment progress, and see how much you’re saving on the go. It also happens to be the highest-rated mobile app, among the companies we reviewed, scoring 4.8 out of 5.0 stars on Google Play and 4.9 out of 5.0 stars on the Apple App Store.
How to qualify:
Customer service at a glance
4.6
A+ (BBB accredited)
Negative effects on credit scores, lack of refunds after termination of services
Positive customer service experiences, successful debt negotiations
Phone (833-582-7700), email (info@freedomdebtrelief.com)
PROS
CONS
National Debt Relief is a debt settlement service that negotiates your debts, then manages payments through an escrow fund.
The company also offers a broad range of services through partners, including debt consolidation loans, credit counseling, and bankruptcy referrals.
How to qualify:
Customer service at a glance
4.7
A+ (accredited)
High fees, lack of progress with debt resolution
Transparent communications, easy enrollment process
Phone (800-300-9550
PROS
CONS
Accredited Debt Relief stands out for its tailored approach to debt relief, offering both debt settlement services and referrals to debt consolidation loans through its network of lending partners. Founded in 2011, the company has helped thousands of consumers reduce unsecured debt, particularly credit card balances. Its flexible program options and strong customer support make it a solid choice for borrowers seeking a customized path to becoming debt-free.
How to qualify:
Customer service at a glance
Trustpilot score:
4.7
BBB rating:
A+ (accredited)
Common complaints?
Program timelines can be long, fees can be high, and some users report frequent follow-up calls
Common praise?
Friendly, knowledgeable representatives and clear, ongoing communication throughout the program
Contact channels:
Phone, email, online form
PROS
CONS
JG Wentworth offers debt settlement and can refer you to debt consolidation loans from MoneyLion. With 32 years in business, it is the oldest debt settlement company on this list, and also offers structured settlements, access to cash by selling your annuity payments, and referrals for credit cards, insurance, and home improvement companies.
How to qualify:
Customer service at a glance
4.8
A+ (accredited)
Non-responsive customer service, payment issues
Positive experiences with specific customer representatives
Phone (888-570-5240), email ( debt@jgwentworth.com )
PROS
CONS
Debt consolidation occurs when you combine multiple high-interest debts into a single monthly payment. This approach is commonly used to simplify repayment, reduce the number of due dates you manage, and make debt easier to track.
In many cases, debt consolidation is accomplished by using a new loan with a fixed repayment term, though other methods may also be used depending on your financial situation.
A debt consolidation loan is a personal loan used to pay off balances owed to multiple creditors, such as credit cards and other unsecured debts. Once those balances are paid off, you’re left with one loan, one interest rate, and one monthly payment over a fixed repayment period.
These loans are typically offered by banks, credit unions, and online lenders. Depending on the lender, funds may be sent directly to your creditors or deposited into your bank account so you can repay the debts yourself. Debt consolidation loans generally work best for borrowers with steady income and sufficient credit to qualify for a competitive interest rate.
When used responsibly, a debt consolidation loan can simplify repayment, lower overall interest costs, and potentially help improve your credit over time by making on-time payments more manageable.
APR, or annual percentage rate, represents the total yearly cost of borrowing. It includes both the interest rate and any lender fees, such as origination fees, giving you a more accurate picture of what a loan will cost over time.
APR is one of the most important factors to consider when comparing debt consolidation loans. While interest rates show the cost of borrowing alone, APR accounts for additional charges, making it a more reliable comparison tool.
In general, the lower the APR, the less you’ll pay over the life of the loan.
Interest rate: The percentage a lender charges for borrowing the loan amount
APR: The interest rate plus any lender fees, expressed as a yearly cost
Because APR reflects the full cost of borrowing, it provides a clearer comparison between loan offers that may otherwise appear similar.
APR calculations vary by lender but are generally lower than those associated with payday or short-term loans. APRs typically range from 3% to 35.99%, depending on your credit profile, loan amount, and repayment term.
APR rates mentioned include associated fees.
Full repayment terms for loans displayed range from 61 days to 180 months.
Representative example:
A $10,000 loan over 60 months at a fixed interest rate of 3.1% per annum with $60 in fees would result in a 3.3% APR, monthly payments of $180.80, and a total amount paid of $10,868.00.
Debt consolidation works by using a new loan to pay off multiple debts—such as credit cards or personal loans—leaving you with one loan to repay over a fixed period.
Once approved, funds are typically distributed in one of two ways:
After consolidation, you make one monthly payment to a single lender with a fixed schedule and interest rate.
You have:
Instead of making three separate monthly payments, you take out a $10,000 debt consolidation loan at a lower APR with a fixed repayment term. The new loan pays off all three balances, leaving you with one payment and one interest rate.
In a more complex scenario, you might owe:
Three credit cards totaling $3,000
Student loans totaling $55,000
A private loan of $15,000
That’s $73,000 across multiple lenders, each with different payment requirements. By consolidating these debts into one loan, you replace multiple monthly payments with a single payment to one lender.
This simplifies repayment by:
Reducing the number of payments you must track
Making budgeting easier with one balance, one due date, and one interest rate
In many cases, consolidation may also lower total interest costs if the new loan has a lower rate—provided you avoid taking on new debt after consolidating.
Note: These examples are for illustrative purposes only and are not financial advice. Consider speaking with a qualified financial professional before making decisions about debt consolidation.
Choosing the right debt consolidation loan depends on cost, flexibility, and the level of support a lender provides. The goal is to reduce total borrowing costs while making repayment easier to manage.
Debt consolidation can be a good option if you’re managing multiple debts with different interest rates and due dates. Combining them into a single payment can simplify repayment and may reduce the total interest you pay.
However, it only works if you change your spending habits. If you continue to use credit or take on new debt, you could end up in a worse financial position.
Debt consolidation can impact your credit in both the short- and long-term.
Short term: Applying for a loan may cause a small, temporary drop due to a hard credit check and the creation of a new account.
Long term: It can improve your credit if you make on-time payments and lower your credit card balances, which helps your credit utilization.
It can hurt your credit if:
Some alternatives, like debt settlement, can have a more negative impact—especially if payments are paused.
“The most important thing to consider is the total amount of payments required to eradicate the debt. Sometimes when you consolidate, it will cost you a lot more over time, but if your immediate need is because you can't put food on the table, then you have to balance your goals.”
Debt relief refers to services that help reduce or restructure unsecured debt when repayment becomes difficult. Instead of taking out a new loan, these programs work with creditors to adjust terms, lower interest rates, or reduce the total amount owed.
Debt consolidation combines debts into a new loan that you repay in full over time. Debt relief, by contrast, changes the terms of existing debts to make them easier to manage.
Because they serve different needs, some providers offer debt relief instead of or alongside consolidation loans. Understanding the difference can help you choose the right option for your situation.
APR (annual percentage rate) is the total yearly cost of a loan, including both interest and fees. It gives a more accurate picture of what you’ll actually pay.
Because APR reflects the full cost, it’s the most important factor when comparing loans. In general, a lower APR means you’ll pay less over time.
Pros
Cons
Real borrower experiences from online forums like Reddit highlight several key lessons. A lower APR is essential, as consolidation may not lead to real savings without it.
Many borrowers also value the simplicity of one fixed payment and a clear payoff timeline.
Fees are a common concern, since upfront costs can reduce or cancel out potential savings, making it important to focus on the full APR rather than just the interest rate.
Borrowers also emphasize the need for discipline, noting that taking on new debt after consolidating can make your situation worse.
Finally, many stress choosing transparent, reputable lenders who clearly explain whether consolidation is the right fit.
These insights are based on common consumer experiences and are not financial advice
Qualifying for a debt consolidation loan depends on your financial profile and the lender’s criteria. Understanding what lenders look for can help you improve your chances of approval and secure better terms.
Applying for a debt consolidation loan usually involves a few simple steps, though steps may vary slightly by lender:
Step 1: Gather your information
Collect details on your income, debts, expenses, and ID.
Step 2: Compare lenders and prequalify
Check rates, terms, and loan amounts using soft credit checks when available.
Step 3: Apply with a lender
Submit a full application, which may require documents and a hard credit check.
Step 4: Review the offer
Check the APR, monthly payment, repayment term, and any fees.
Step 5: Confirm fund distribution
Make sure you know if the lender pays creditors directly or sends funds to you.
Step 6: Pay off debts and stay on track
Confirm debts are paid and set up payments to avoid missed bills or new debt.
Debt consolidation isn’t always the best fit. Depending on your situation, these options may work better:
These options can work well if you stay consistent and choose the one that fits your financial situation.
Debt relief programs follow a different model than consolidation loans and should be evaluated using separate criteria.
By rolling all your debts and interest rates into one loan and paying at least the monthly minimum, if not more, you may save money. Keep in mind that, in order to save money, the interest on your debt consolidation loan should be lower than the highest interest rate you’re currently paying on other loans or credit card debts.
Debt consolidation may help you get out of debt sooner. By making a single monthly payment rather than multiple payments and having a single interest rate rather than many, you may find a faster, simpler path to paying off your debts, leaving fewer opportunities for mistakes, such as missed payments.
Many lenders offer debt consolidation loans, including Freedom Debt Relief, SoFi, National Debt Relief, Upgrade, and more. Make sure the lender you work with offers loans in your state.
Secured loans, which may be easier to qualify for with a lower credit score, use an asset like property or cash to secure the loan in case you are unable to pay it. An unsecured loan does not require collateral and may have stricter qualification requirements.
Compare what different lenders — both traditional banks and online lenders — have to offer. Start with the loans you qualify for based on the amount of debt you want to consolidate and your credit score. Then look at interest rates and choose the lender with the best debt consolidation loan. Finally, ensure the loan terms fit your budget and financial goals.
Disclaimers
BestMoney.com provides general educational information and comparisons and does not provide financial, legal, or tax advice. Consider consulting qualified professionals and confirming current terms directly with lenders/providers.
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*Statistics reflect the results of the members we and our affiliates have served since 2002 (as of January 2026).
