Best Debt Consolidation Options for 2026

Compare debt consolidation loans, balance transfer cards, and debt relief programs to find the best way to become debt-free.

If you're struggling with multiple debts, debt consolidation could be your path to financial freedom. By combining multiple debts into a single payment, you can potentially lower your interest rate, reduce your monthly payment, and pay off debt faster.

Our Top Debt Consolidation Picks

Editor's Choice

National Debt Relief

4.5

One of the largest debt settlement companies in the US. Helps reduce unsecured debt by negotiating with creditors.

  • No upfront fees
  • Free consultation
  • Accredited by IAPDA
Check Rates

SoFi Personal Loans

4.7

Online lender offering personal loans with competitive rates and no fees.

  • No origination fees
  • Unemployment protection
  • Fast funding (same day possible)
Check Rates

LendingClub

4.3

Peer-to-peer lending platform offering personal loans for debt consolidation and more.

  • Accepts fair credit (600+)
  • Joint applications allowed
  • Direct creditor payment option
Check Rates

Upgrade Personal Loans

4.4

Modern lender offering personal loans and credit products with flexible terms.

  • Accepts fair credit (580+)
  • Fast approval process
  • Credit monitoring included
Check Rates

What is Debt Consolidation?

Debt consolidation is the process of combining multiple debts into a single loan or payment. This can simplify your finances and potentially save you money if you qualify for a lower interest rate than what you're currently paying.

Types of Debt Consolidation

  • Personal Loans: Borrow a fixed amount to pay off existing debts, then repay the loan in fixed monthly installments.
  • Balance Transfer Cards: Transfer high-interest credit card balances to a card with a 0% intro APR period.
  • Debt Management Plans: Work with a credit counseling agency to negotiate lower rates with creditors.
  • Debt Settlement: Negotiate with creditors to pay less than you owe (may impact credit score).

How to Choose the Right Option

The best debt consolidation option depends on your specific situation:

  • Good credit (680+): You may qualify for low-interest personal loans from SoFi, LendingClub, or similar lenders.
  • Fair credit (580-679): Consider Upgrade or other lenders that work with fair credit borrowers.
  • $10,000+ in unsecured debt: Debt settlement through National Debt Relief could reduce what you owe by 30-50%.
  • High credit card balances: A 0% APR balance transfer card could save you thousands in interest.

Detailed Reviews

Featured

National Debt Relief

4.5

One of the largest debt settlement companies in the US. Helps reduce unsecured debt by negotiating with creditors.

Pros

  • No upfront fees
  • Free consultation
  • Accredited by IAPDA
  • A+ BBB rating

Cons

  • Requires $10,000+ in debt
  • May impact credit score
  • Not available in all states
Check Rates

SoFi Personal Loans

4.7

Online lender offering personal loans with competitive rates and no fees.

Pros

  • No origination fees
  • Unemployment protection
  • Fast funding (same day possible)
  • Rate discounts available

Cons

  • Requires good credit (680+)
  • No co-signer option
  • Not available in all states
Check Rates

LendingClub

4.3

Peer-to-peer lending platform offering personal loans for debt consolidation and more.

Pros

  • Accepts fair credit (600+)
  • Joint applications allowed
  • Direct creditor payment option
  • No prepayment penalty

Cons

  • Origination fee (3-8%)
  • Longer funding time
  • Higher rates for lower credit
Check Rates

Upgrade Personal Loans

4.4

Modern lender offering personal loans and credit products with flexible terms.

Pros

  • Accepts fair credit (580+)
  • Fast approval process
  • Credit monitoring included
  • Multiple loan options

Cons

  • Origination fee (1.85-9.99%)
  • Higher APR for lower credit
  • Late payment fees
Check Rates

Frequently Asked Questions

Will debt consolidation hurt my credit score?

A personal loan or balance transfer typically causes a small, temporary dip in your credit score due to the hard inquiry. However, if you make on-time payments and reduce your credit utilization, your score should improve over time. Debt settlement may have a larger negative impact.

How much can I save with debt consolidation?

Savings depend on your current interest rates and the rate you qualify for. If you're paying 20%+ APR on credit cards and consolidate to a 10% personal loan, you could save thousands over the life of the loan.

How long does debt consolidation take?

Personal loan funding can happen in as little as 1-7 days. Paying off the consolidated debt typically takes 2-5 years depending on your loan term. Debt settlement programs usually take 24-48 months.