Last updatedApril 2026
Our Top Debt Consolidation Loans 2026
Say goodbye to debt
Combine multiple debts into one single payment with a simple debt consolidation loan. Compare lenders and get out of debt fast!
How big is your debt?
Debt Amount
How big is your debt?
Debt Amount
5,666 people
used BestMoney to find a lender last week.
.20210719095137.svg)
BestMoney Total Score
Our product scores consist of a combination of the following 3 components:
Popularity
BestMoney measures user engagement based on the number of clicks each listed brand received in the past 7 days. The number of clicks to each brand will be measured against other brands listed in the same query. Therefore, the higher the share of clicks a brand receives in any specific query, the higher the Click Trend Score. BestMoney accepts advertising compensation from companies, which impacts their (and/or their products’) position, and in some cases, may also affect their Click Trend Score.
Brand Reputation
Semrush is a trusted and comprehensive tool that offers insights about online visibility and performance. The BestMoney Total Score will consist of the brand's reputation from Semrush. The brand reputation is based on Semrush's analysis of clickstream data, which includes user behavior, search patterns, and engagement, to accurately measure each brand's prominence, credibility, and trustworthiness. If a brand does not have a Semrush score, the BestMoney Total Score will be based solely on the Click Trend Score and Products & Features Score (read below).
Features & Benefits
BestMoney’s editorial team researches and reviews financial products based on factors such as: range of products and services offered, ease-of-use, online accessibility, customer service, special awards, and more. Each brand is then given a score based on the offerings in each parameter. The specific parameters which we use to evaluate the score of each product can be found on its review page.
Need help finding the right lender for you?
How much debt do you have?
Step 1/4
What is a Debt Consolidation Loan?
A debt consolidation loan is simply a process by which you use one source of money to pay off the balance owed to multiple debtors.
So, for example, you could have three credit cards with outstanding balances, a student loan, and a personal loan, all with balances that need to be partially paid off each month. A debt consolidation loan takes care of all of these debts and rolls them up into a single, more manageable monthly payment that can be lower than the previous payments you were making combined.
When done right, debt consolidation loans can help clear up your debt and potentially improve your credit over time. Many borrowers explore debt consolidation as a practical way to simplify repayment, and a debt consolidation loan can be one of the most effective tools to consolidate debt without changing the overall goal of becoming financially stable.
What are APRs, and How Will a Lower One Help Me?
APR stands for annual percentage rate. It combines charges, fees, and payments to show you the grand total of what your loan will cost you each year. The lower the APR, the less you are going to pay in the long run.
APR is one of the most important factors to consider when comparing and considering debt consolidation loans. APR is not exactly the same as interest rates. Here’s the main difference:
- Interest rate: The percentage you’ll be charged by a lender for supplying you with a loan
- APR: Includes the interest rate and any fees charged by a lender when taking out a loan
So, an APR really gives you a broader scope of how much it will cost you to take out a loan. This means that the lower the APR you can get, the less you will pay over the life of your loan.
In short, a lower APR means less money paid out of your pocket. That’s good news for the borrower, especially when comparing consolidation loans or searching for the best debt consolidation loan for your needs.
The APR on personal loans varies by lender, but it is typically lower than what you would receive from a payday or short-term loan, usually starting at 3% and capped at 35.99%. It is not ideal to owe any money, but if you require a loan, then a personal loan could be a viable option.
For many people exploring debt consolidation, lower APRs are one reason why consolidating debt loans and other debt consolidation programs may appear more manageable than higher-cost borrowing options.
APR rates mentioned include associated fees.
Full repayment for the displayed loans ranges from 61 days to 180 months.
Representative example: assuming a loan of $10,000 over 60 months at a fixed rate of 3.1% per annum and fees of $60.00. This would result in a representative APR of 3.3%, with monthly repayments of $180.80, for a total amount paid of $10,868.00.
When evaluating the best consolidation loan, it is always important to review the full repayment amount and the APR before choosing among different debt consolidation companies or lenders.
How Does a Debt Consolidation Loan Work?
Debt consolidation loans are convenient for people, whether you’re good at math or not. If the numbers have got your head spinning, here’s how it works:
Let’s say you have 3 credit cards with balances of $1,000 each.
- Three credit cards x $1,000 each = $3,000
You also have $55,000 in student loans to pay off, plus a $15,000 private loan you took out to fund a dream vacation to the Bahamas. That’s another $70,000 in outstanding loans.
Each month, you’ll have to pay a certain percentage of the amount owed to each lender, based on the minimum payment requirements and the APR for the specific loan.
For example, you might have to pay:
- $100 to American Express
- $100 to Visa
- $100 to MasterCard
- $200 toward your student loan
- $100 toward your private loan
This is one reason many people look into debt consolidation or compare debt consolidation loan offers to consolidate debt more efficiently.
Altogether, these payments come out to $600 per month. The payments are deducted from your overall balance, and this continues until you’ve paid off the entire debt amount.
Now, here’s how it works when you introduce a debt consolidation loan into the picture:
- You take out a new debt consolidation loan for the full amount of your debt, $73,000.
- You pay off your entire credit balance for each of the three credit cards:
- $1,000 to American Express
- $1,000 to Visa
- $1,000 to MasterCard
- You pay off your entire student loan: $55,000.
- You pay off your entire private loan: $15,000.
Note: The example above is for illustrative purposes only and is not meant as financial advice or instructions. You are encouraged to speak with a professional financial advisor to help determine the best solution for your specific debt needs.
Now, you're debt-free, right? Sort of. You have no more outstanding debt. The only thing you have to pay off now is your debt consolidation loan.
So, instead of having to make five individual payments each month, you’ve shrunk your debt repayment requirements down to a single monthly payment. That is helpful in two ways:
- You only have to pay off a single debtor, so your monthly payments can end up being significantly less than if you had to keep five individual lenders happy. This is one reason debt consolidation can appeal to borrowers who want a simpler path to repayment and are comparing consolidation loans or other debt-consolidation options.
- You alleviate the headache of juggling five different payments with varying amounts, payment schedules, due dates, fees, and more. One payment is much more manageable mentally than five. For people reviewing debt consolidation loans, this convenience can matter just as much as the interest savings.
What’s more, and often most important, you could end up paying less all around because you have lowered your interest rate. That’s why many consumers search for the best debt consolidation loan, or even compare several best debt consolidation loans before making a final borrowing decision.
Choosing the Best Debt Consolidation Loan Company: Factors to Consider
Factor in details about a debt consolidation loan provider, such as:
1. Lower Interest Rate and APR
One of the most important features is the APR. With a lower interest rate, you can end up saving considerably on your debt consolidation loan. With a higher one, you’re shooting yourself in the one good foot you have to stand on.
Borrowers often compare debt consolidation companies and lenders offering loan consolidation products to find the most affordable terms.
2. Access to Experts
Most of us do not know much about finances or how they work. For that reason, it can be advantageous if you find a debt consolidation loan lender that will walk you through the whole process, answer any questions you have, explain all the terms, and be clear with you about any details that are murky.
This is especially useful when comparing consolidated debt loans, reviewing debt consolidation programs, or searching for the best consolidation loan for your situation.
3. Flexibility
Repayment terms, prepayment penalties, late payment fees, and more will vary from one lender to the next. Find a lender with flexible terms that you can work with for the most pleasant borrowing experience.
Flexibility is often a major advantage when comparing debt consolidation loans, especially if you want to keep your monthly payments realistic.
When to Consider a Debt Consolidation Loan
A debt consolidation loan could be the right idea if you:
- Are you struggling with multiple types of debt
- Want to increase your credit utilization ratio
- Want to build your credit by diversifying
Of course, it is also worth noting when it is not a good idea to take a debt consolidation loan.
If you are currently in major credit card debt due to irresponsible spending and you do not intend to change these habits, walk away. While a debt consolidation loan can help alleviate your debt, it will only work if you have every intention of taking a more responsible course of action in the future.
Clearing your debt quickly leaves a tempting gap in your credit line, freeing it up for more spending. If you are not careful, you could easily find yourself in even greater credit card debt than before you started.
In many cases, the best debt consolidation strategy is not only to use one of the available debt consolidation loans, but also to change the habits that caused the debt in the first place. People researching best debt consolidation loans, comparing debt consolidation companies, or reviewing debt consolidation programs should remember that long-term success depends on both the loan and the borrower’s financial discipline.
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.
AI was used to create this content, with human validation and proofreading.