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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Loans Writer, Deputy Editor, Personal and Business Loans
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "The Clark Howard Show" for 14 of those years and has been hosting the "How To Money" podcast for six years. He currently hosts “How To Money”—which has covered debt, loan options and related subjects—three times a week, and a personal finance radio show on KFI radio in Los Angeles on Sunday afternoons. Basically, he's been marinating in all things personal finance for a long time.
His goal is to help his cadre of listeners live a balanced life, saving and investing for their future while simultaneously enjoying the here and now. Joel's other passions include sipping delicious craft beer, riding bikes, and exploring Atlanta with his wife and three kids.
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "The Clark Howard Show" for 14 of those years and has been hosting the "How To Money" podcast for six years. He currently hosts “How To Money”—which has covered debt, loan options and related subjects—three times a week, and a personal finance radio show on KFI radio in Los Angeles on Sunday afternoons. Basically, he's been marinating in all things personal finance for a long time.
His goal is to help his cadre of listeners live a balanced life, saving and investing for their future while simultaneously enjoying the here and now. Joel's other passions include sipping delicious craft beer, riding bikes, and exploring Atlanta with his wife and three kids.
Loans and Saving Expert
Expert Reviewed
Updated: Jun 28, 2024, 1:19pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Debt consolidation can be an effective way to streamline payments and potentially reduce your interest charges. The best personal loans for debt consolidation offer low annual percentage rates (APRs) and flexible repayment terms, while avoiding fees like prepayment penalties, so you can retire debt early without having to pay a fee.
Why you can trust Forbes Advisor: Our editorial team has over 20 years of cumulative experience and relies on research and data-driven methodologies to provide unbiased ratings for debt consolidation loans. We are not influenced by advertisers and provide honest and transparent product evaluations. You can read more about our editorial guidelines and the loans methodology below.
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
SoFi is an online lender that offers debt consolidation loans from $5,000 to $100,000 with low rates and same-day funding for borrowers who meet requirements.
Why We Like It Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (at least 650) and annual income (at least $45,000).
What We Don’t Like SoFi has a higher minimum credit score requirement than other lenders, which could make its loans less accessible to certain borrowers.
Who It’s Best For SoFi personal loans are a great option for borrowers with excellent credit who want to consolidate a large sum.
Pros & Cons
Prequalification without a hard inquiry
Same-day approval possible
Can pay off third-party creditors directly
High credit score requirement
Co-signers not permitted
Details
Eligibility:
Minimum credit score required. 650
Minimum annual income. $45,000
Co-borrowers. Permitted
Co-signers. Not permitted
Expert’s Take
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi’s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi’s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
— Michael Ashley, finance expert, Richiest.com
Best Debt Consolidation Loan for Bad Credit
Upgrade
4.9
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Upgrade stands out for accepting borrowers with poor credit histories. The minimum credit score required to get a loan is much lower than many other lenders offering consolidation loans.
Why We Like It Upgrade provides small and large loans to borrowers with credit scores as low as 580, and there’s no minimum income requirement.
What We Don’t Like Interest rates on Upgrade loans are very high compared to other lenders. There’s also an origination fee of 1.85% and 9.99%.
Who It’s Best For Although rates could be high, Upgrade personal loans may be a good option for borrowers with negative marks on their credit record who can’t qualify for other consolidation loans.
Pros & Cons
Flexible eligibility requirements
Can pay off creditors directly
High loan amounts available
High APR range
Fees for late payments and insufficient funds
Charges origination fees from 1.85% and 9.99%
Details
Eligibility:
Minimum credit score. 580
Minimum income. None
Co-applicants. Permitted
Expert’s Take
Upgrade’s personal loans come with a unique feature—mandatory automatic payments. While this is an effective default prevention measure, it might not suit everyone, especially those with irregular income streams.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
Best Debt Consolidation Loan for Credit Card Debt
Happy Money
4.4
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Happy Money specializes in consolidating high-interest credit card debt with low-interest loans for borrowers with decent credit.
Why We Like It Happy Money lets you borrow from $5,000 to $40,000 with repayment terms of two to five years. It can also pay off creditors directly, making it easier to combine multiple card balances.
What We Don’t Like Happy Money only consolidates credit card debt, doesn’t allow co-signers and charges origination fees of 0% to 5%.
Who It’s Best For Happy Money personal loans are best for borrowers seeking to pay off multiple credit cards with a streamlined loan with one consistent payment and a predictable payoff schedule.
Pros & Cons
Pays creditors directly
Offers low rates
No late fees, returned check fees or prepayment penalty fees
Has origination fees
Primarily consolidates credit card debt
Doesn’t allow co-signers or co-borrowers
Details
Eligibility
Minimum credit score. 640
Minimum income. None
Co-signers. Not permitted
Co-borrowers. Not permitted
Expert’s Take
The best feature of Happy Money is its willingness to pay other creditors directly. At the point, you are consolidating credit with Happy Money, every day of interest matters. Happy Money is a solid option for someone with a good credit history but significantly over-levered. I have seen them work with a client who was laid off during the repayment period.
— Herman Thompson, Jr., advisory board member
Best Debt Consolidation Loan for Below Average Credit
LendingClub
4.4
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LendingClub stands out for offering loans to borrowers with limited credit. Once approved for a consolidation loan, LendingClub repays your creditors directly.
Why We Like It LendingClub provides loan amounts of $1,000 to $40,000 and loan terms range from two to five years, giving borrowers the flexibility to customize repayment terms.
What We Don’t Like LendingClub has a higher maximum APR than other lenders and does not advertise an interest rate discount for using autopay.
Who It’s Best For LendingClub personal loans are ideal for borrowers with below-average credit. Borrowers with scores as low as 600 may be eligible for a debt consolidation loan.
Pros & Cons
Available to borrowers with fair to excellent credit
Balance transfer loans can directly pay off third-party creditors
Co-applicants permitted
Origination and late fees
High APR cap
Details
Eligibility:
Minimum credit score. 600
Minimum income. Does not disclose
Co-signers. Not permitted
Co-borrowers. Permitted
Best Debt Consolidation Loan for Long Terms
Discover
4.2
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Discover offers longer-than-average loan terms with low interest rates for eligible borrowers. Like other lenders on this list, funds can be sent directly to your creditors to pay off balances.
Why We Like It We like that Discover has no upfront origination fees and offers loan terms of three to seven years.
What We Don’t Like Discover doesn’t advertise interest rate discounts for autopay, and you need good credit to qualify for loans.
Who It’s Best For Discover personal loans are a good choice for borrowers with strong credit histories who want longer loan terms. Most lenders offer a maximum of five years, while Discover offers seven.
Pros & Cons
No origination fees
Low interest rates
Funds can go directly to paying off credit lines
No interest rate discount for autopay
No co-signers or co-borrowers accepted
Good credit needed to qualify
Details
Eligibility:
Minimum credit score: 660
Minimum income: $25,000
Co-signers. Not permitted
Co-borrowers. Not permitted
Best Debt Consolidation Loan for Comparing Offers
Universal Credit
4.2
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Universal Credit is a lending platform that may provide loans to borrowers who have high debt-to-income (DTI) ratios and bad credit.
Why We Like It Borrowers with high balances, low income and poor credit history may be able to get loans through Universal Credit’s lending partners. Once approved, borrowers get access to free credit reporting, a tool that can be valuable when working to rebuild credit.
What We Don’t Like Interest rates on Universal Credit loans range from 11.69% to 35.99%, which is higher than other lenders.
Who It’s Best For Universal Credit is a good consolidation option for borrowers with damaged credit because it allows you to compare multiple offers at once from different lender partners. Shopping around is the best way to find the most affordable loan you can get when your credit is poor.
Pros & Cons
Flexible qualification requirements
Next-day funding
No prepayment penalty
High APRs
All personal loans charge a 5.25% to 9.99% origination fee
Details
Eligibility:
Minimum credit score. 580
Minimum income requirement. Does not disclose
Co-signers. Does not disclose
Co-borrowers. Does not disclose
Best Debt Consolidation Loan From a Brick-and-Mortar Bank
PNC Bank
4.1
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
PNC Bank is a major brick-and-mortar financial institution that offers debt consolidation loans online with no collateral required.
Why We Like It PNC Bank personal loans have no application or origination fees. Borrowers can lock in a 0.25% rate discount for making automatic loan payments from a PNC checking account.
What We Don’t Like PNC Bank loans are only offered from $1,000 to $35,000, and that maximum is less than what you can borrow from other lenders.
Who It’s Best For PNC Bank personal loans are best for borrowers with an established relationship with the bank or who want to apply for a loan with a co-borrower.
Pros & Cons
Offers competitive rates
Has no origination fees
Offers autopay rate discounts
Doesn’t clearly share eligibility requirements
Loan amounts are low compared to other lenders
Details
Eligibility
Minimum credit score. Does not disclose
Minimum income. Does not disclose
Co-borrowers. Permitted
Best Debt Consolidation Loan for Quick Funding
Best Egg
3.7
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Best Egg offers personal loans from $2,000 to $50,000 (depending on your state) with fast funding, making it a potential option to consolidate large balances quickly.
Why We Like It Best Egg has a Direct Pay feature you can use to apply loan funds directly to eligible credit card accounts. The lowest rates are also available to borrowers who apply with an income of at least $100,000 and a credit score of at least 700.
What We Don’t Like Best Egg charges an origination fee ranging from 0.99% to 5.99%, and the maximum interest rate is high compared to other lenders.
Who It’s Best For Best Egg is best for borrowers with at least fair credit who want to consolidate debt quickly. You can get approved in minutes, and loan funding can happen within 24 hours.
Pros & Cons
Offers direct payment to third-party creditors
Low minimum APR
No prepayment penalty
Charges an origination fee
No co-signers or co-borrowers accepted
Details
Eligibility:
Minimum credit score. 640 (700 for lowest APR)
Minimum income. $100,000 for lowest APR
Co-signers. Not permitted
Co-borrowers. Not permitted
Personal loan interest rates depend on several factors, including the borrower’s creditworthiness, lender, loan amount and repayment term. Typically, however, personal loan interest rates range from around 5.99% to 36%, with the lowest rates reserved for borrowers with excellent credit.
Summary: Best Debt Consolidation Companies of 2024
Personal loans often are available online through traditional banks, credit unions and alternative lending platforms so you can apply quickly and conveniently, without having to visit a bank branch. Many of these lenders also offer competitive interest rates and flexible repayment terms, meaning you may be able to save money by consolidating your other debts.
Consider these tips when comparing personal loans:
Where possible, prequalify
Many personal loan providers offer prospective borrowers the ability to prequalify for a loan. This means the applicant can submit details about their financing needs, income, housing situation and other relevant information to find out what kind of loan amounts, rates and repayment terms they are likely to qualify for. Even better, this process typically only requires a soft credit inquiry so you can shop around without hurting your credit score. If you think you may benefit from consolidating your debt—but aren’t sure what rates you’ll qualify for—the prequalification process can streamline your search by ruling out lenders with higher rates.
Consider the purpose of your loan
While personal loans can be used for a broad range of purposes, they are limited to things like consumer debt consolidation, home improvements, vacations, weddings, funerals, large purchases and other personal expenses. Lenders often forbid you from using personal loans for postsecondary education expenses, business purposes and illegal activities, at a minimum. When considering a lender, always confirm that debt consolidation is an acceptable use of the loan funds. Even better—determine whether the lender will pay your other creditors directly.
Keep an eye out for additional fees
Some lenders offer fee-free personal loans that don’t require borrowers to pay origination fees, late payment fees, prepayment penalties or other common loan costs. However, this is more the exception than the rule, so it’s important to ask about fees when shopping for the best loan terms. This is especially important if you’re trying to save money by consolidating debt because fees can cut into your savings over the life of the loan. Likewise, if a lender charges an origination fee, find out whether it’s built into the APR or taken out of the loan amount prior to funding, as this may impact the loan amount you need to request.
Evaluate the lender’s customer support options
If you’ve found a lender that’s prepared to offer the money you need at acceptable terms, there’s one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal in the honeymoon phase of your loan, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews from past and current borrowers to ensure it’s a good fit.
Pro Tip
Opt for a loan that offers manageable repayment options based on your financial situation. Some lenders may offer flexible repayment schedules, including bi-weekly or monthly payments, which can help you stay on track with your budget.
Debt consolidation is when a borrower takes out a new loan, usually with more favorable terms (a lower interest rate, lower monthly payment or both) and then uses the loan proceeds to pay off their other individual debts. Debt consolidation loans are commonly used to help pay off credit card balances, auto loans and other personal loans.
How Does a Debt Consolidation Loan Work?
To start consolidating debt, apply for a personal loan through your bank or another lender. Once your lender approves you for a debt consolidation loan, it may offer to pay off your other debts automatically—or you will take the cash and pay them off yourself.
After your pre-existing debts are repaid with your new debt consolidation loan funds, you’ll make a single payment on your new loan every month. While debt consolidation often reduces your monthly payment, it accomplishes this by extending the loan period of the consolidated loans. Debt consolidation also streamlines payments and makes it easier to manage finances, like having a single monthly payment due date.
Pro Tip
Using personal loans can be a convenient way to consolidate and pay off high-interest credit card debt. Interest rates on personal loans are usually fixed, which means the interest rate and payment stay the same for the entire loan term. You can also take comfort in knowing your debt will be paid off by a predetermined date as long as you make each payment as scheduled.
Pros and Cons of Debt Consolidation Loans
Debt consolidation loans are a finance tool. Like any tool, it can either help or hurt you, depending on how you use it. Before you submit an application to borrow money, make sure you’ve fully considered the pros and cons of debt consolidation loans.
Pros of Debt Consolidation
Simplifies your debt repayment
Rates may be lower than the rates on credit card debt
Helps you pay down debt faster if you opt for shorter-term loans
Can improve your credit score, especially if you’re consolidating credit card debt
Lowers your payment if you opt for long-term and/or lower-rate loans
Cons of Debt Consolidation
Can damage your credit if you miss any loan payments
Your options may be more limited if you have bad credit
Can be somewhat confusing, especially as your old debts are being paid off
Can tempt you to run up your credit cards again once they’re paid off
Does Debt Consolidation Hurt Your Credit?
Debt consolidation loans can hurt your credit, but the impacts can be temporary. Applying for a loan requires a hard credit check, which can result in a small dip in your credit score. However, the impact of the inquiry on your score will decrease over time and disappear typically after two years. Your credit score may also decrease if you take out a debt consolidation loan, pay off your credit cards and then rack up more debt on those cards.
That said, consolidating loans can be a great way to streamline your payments, reduce your monthly debt service and build healthy financial habits through regular, on-time payments. For that reason, consolidation loans can actually help you improve your credit score over time. What’s more, some lenders even offer credit tools beyond regular lending services to help you manage your credit profile.
How To Qualify for a Debt Consolidation Loan
Qualifying for a debt consolidation loan is similar to any other personal loan.
Shop around for lenders where you meet the minimum qualifications. If you don’t meet the credit score requirements, take steps to improve your credit score. This can include correcting mistakes on your credit report, paying credit card debt or paying down any past-due accounts.
Getting preapproval for a debt consolidation loan can verify that you’ll qualify for the loan when you submit an official loan application.
How To Get a Debt Consolidation Loan
While the process varies by lender, follow these general steps to get a debt consolidation loan:
Check your credit score. Check your credit score for free through your credit card issuer or another website that offers free scores. This will help you understand your creditworthiness and qualification chances. Aim for a score of at least 610; however, a score of at least 720 will yield the most favorable terms.
If necessary, take steps to improve your credit score. If your score falls below 610 or you want to boost your score to receive the best terms possible, take time to improve your score before applying, such as lowering your credit usage or paying off unpaid debts.
Determine how much debt you need to consolidate. Once you check your credit score, calculate how much money you need to borrow to consolidate all of your debts. Remember, though, you’ll receive your money as a lump sum, and you’ll have to pay interest on the entire amount—so only borrow what you need.
Shop around for the best terms and interest rates. Many lenders will let you prequalify prior to submitting your application, which lets you see the terms of your loan with just a soft credit inquiry. A soft credit inquiry has no impact on your credit score.
Submit a formal application and await a lending decision. After you find a lender that offers you the best terms for your situation, submit your application online or in person. Depending on the lender, this process can take a few hours to a few days.
ASK AN EXPERT
What steps should you take before applying for a debt consolidation loan to get the most favorable terms?
Joel Larsgaard
Advisory Board Member
Taylor Medine
Mortgages & Loans Writer
Jordan Tarver
Lead Editor, Mortgages & Loans
The first question to ask is, “Should I consolidate my debt?” Or, “Would I be better off making a list of all the debts I owe and creating an order of urgency, paying them down one by one?”
Debt payoff isn’t just about getting the best terms possible. You don’t want to be shifting deckchairs around on the Titanic.
Debt consolidation might still be the best choice for you and could reduce the length of time it will take to pay off your debt. To get the best rate and terms, pay close attention to your credit score. The higher the score, the better off you’ll be when shopping around with various lenders.
Cleaning up your credit is a key first step since your credit score directly affects your interest rates and loan costs.
The higher your score, the more money you’ll save on interest. Disputing incorrect records on your credit report is one way to raise your score if you can’t reduce your balances.
It’s also important to consider multiple loan term lengths—long, short or medium. This will help you find a loan with a manageable payment and reasonable payoff timeline that gets rid of debt sooner rather than later.
Finally, before applying for a loan, check the institutions where you’re currently banking for loans. You never know—the bank holding your mortgage or a nearby credit union might offer you the best deal on a loan. Try giving them a call!
When it comes to getting the most favorable terms, prospective borrowers must focus on becoming a low risk in the eyes of the lenders.
With that in mind, I recommend following these simple steps before applying:
Take a hard look at your credit. Before applying for any new account, it’s crucial to look at your credit and be honest with yourself. Is it lacking? Do you need to shape it up a bit? Or, are you in a good spot? If you’re aiming for the most favorable terms, we recommend a score of at least 700 to 720.
Take action and improve your score. If your credit score is a wake-up call for you, it’s best to hold off on applying until you get it into shape. Repaying existing debt and removing any errors from your credit report can help boost your score.
Apply with a co-signer. If your credit is limited and you don’t have the time to improve your credit score, applying with a co-signer can help you land better terms. The co-signer’s credit score will be used when evaluating the application. However, this means if you fall behind on payments, it could ding their credit score in addition to yours.
If you don’t qualify for a traditional debt consolidation loan or want to compare other available options, consider alternatives, including:
1. Balance Transfer Credit Cards
Some credit card providers offer cards that let you move—or transfer—existing credit card debt to a new card with a 0% introductory APR, often for a percentage fee. As long as you repay your debt within the introductory period, which can range up to 21 months, you can avoid paying interest. Any unpaid balances after the introductory period ends will begin to accrue interest.
2. Home Equity Loan
If you have sufficient equity in your home, typically at least 15% to 20%, you may be eligible to borrow up to 85% of your equity. Funds are disbursed as a lump-sum payment, which you can use to repay high-interest debts, and interest is owed on the full loan amount. Home equity loans are secured by your home, which means the lender can repossess the property if you default on the debt.
3. Home Equity Line of Credit
Similar to a home equity loan, a HELOC also gives you access to funds through your home equity. However, instead of receiving funds as a lump-sum payment, you’ll have access to a credit line you can use as needed, and reuse as you repay your balance during the draw period. You’ll also only pay interest on the amount you borrow, not the entire approved amount.
Find the Best Balance Transfer Credit Cards Of 2024
Determining whether debt consolidation is a good idea for you depends on your credit score and whether you’re taking other steps to improve your financial habits. Debt consolidation may benefit you if:
You’re committed to paying off the full amount of your debt consolidation loan
You have enough cash flow to cover all of your debt payments
You’re okay with repaying your loans over a longer period of time
You’ve improved your credit score since you took out your original loans
You have a financial plan to avoid running up your debts again
The key to taking out a personal loan and consolidating debt without doing more harm to your finances is to create a debt payoff plan and stick to it. So many people think that a different financial product with a lower interest rate is the solution. But the real answer is to make changes to how you spend, avoiding the worst forms of debt in the first place. — Joel Larsgaard, advisory board member
Recap: Best Debt Consolidation Loans of 2024
SoFi – Best Debt Consolidation Loan for Large Amounts
Upgrade – Best Debt Consolidation Loan for Bad Credit
Happy Money – Best Debt Consolidation Loan for Credit Card Debt
Lending Club – Best Debt Consolidation Loan for Peer-to-Peer Lending
Discover – Best Debt Consolidation Loan for Long Terms
Universal Credit – Best Debt Consolidation Loan for Comparing Offers
PNC Bank – Best Debt Consolidation Loan From a Brick-and-Mortar Bank
Best Egg – Best Debt Consolidation Loan for Quick Funding
Methodology
We reviewed 26 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
Loan cost. 35%
Loan details. 20%
Eligibility and accessibility. 20%
Customer experience. 15%
Application process. 10%
Bonus points. 15 points for lenders who pay creditors directly
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated the availability of each provider’s customer support team.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
How long are the terms of a debt consolidation loan?
The most common term for debt consolidation loans ranges between three and five years. You may be able to find lenders offering different term lengths ranging from one year to 10 years, however.
How much can I save with debt consolidation?
How much you can save depends on the amount you’re paying off, your interest rates and your term length. A debt consolidation loan can have lower interest rates than your current debt, and in some cases, shortening your loan term can also save you money on interest.
Veterans who have Veterans Affairs (VA) loans may qualify for a Military Debt Consolidation Loan (MDCL), also known as a VA Consolidation Loan. This acts as a cash-out refinance. Veterans who don’t have VA loans can rely on traditional personal loans to consolidate their debts.
How long does it take to get approved for a consolidation loan?
Approval turnaround times typically vary per institution. For example, some online lenders may approve your loan within a matter of minutes, while banks may take a few days or up to a week to process. Once your loan is approved, funding can arrive within 24 to 48 hours or up to one week, depending on your lender.
Also, keep in mind that once you are approved for a debt consolidation loan, it might take several weeks to pay off your existing debts, depending on the lender. They will likely still hold you responsible for any payment due dates within that waiting period.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "The Clark Howard Show" for 14 of those years and has been hosting the "How To Money" podcast for six years. He currently hosts “How To Money”—which has covered debt, loan options and related subjects—three times a week, and a personal finance radio show on KFI radio in Los Angeles on Sunday afternoons. Basically, he's been marinating in all things personal finance for a long time.
His goal is to help his cadre of listeners live a balanced life, saving and investing for their future while simultaneously enjoying the here and now. Joel's other passions include sipping delicious craft beer, riding bikes, and exploring Atlanta with his wife and three kids.
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