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The Best Debt Consolidation Services November 2024

We understand that debt can be a major source of stress and anxiety. We're here to help. Many people find that combining their debts into one monthly payment can save them money on interest rates and make their payments easier. Compare our top debt consolidation options below and select the right financial solution for you.

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Our Top Pick
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Key Facts

  • Recommended for more than $25,000 of unsecured debt
  • Fees between 18-25% of enrolled debt
  • Cannot be used for collateral-based debts
  • Only available in 32 states

Pros

pros iconCould help reduce the total debt owed

pros iconWilling to work with people who have been turned away or rejected by most other lenders or debt consolidation companies

pros iconOffers consumers more control over their current debt than making recurring minimum payments and increasing overall debt

Cons

cons iconThough debt can be lowered, the service itself does have a fee associated

cons iconEnrolling on to this program will lower your credit score

  • check mark Recommended debt: $25,000+
  • check mark Over $15 billion in debt resolved
  • check mark Served over 850,000 clients since 2002
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Key Facts

  • Qualifying depends on your financial profile
  • A minimum debt load of $20,000 required

Pros

pros iconHelps consumers realize approximate savings of 45% before fees.

pros iconNo upfront fees.

pros icon21,000 Five-Star reviews on Trustpilot.

pros iconA+ Rating with the BBB.

pros iconLargest footprint in the industry

pros iconOn average, become debt-free in 24-48 months.

Cons

cons iconDR program can cause a temporary drop in your credit score.

cons iconThe debt settlement process can take up to 48 months.

cons iconUnlike a cash-out refinance, you will not be able to get cash from a debt settlement program.

  • check mark Minimum debt: $20,000
  • check mark Become debt-free in 24-48 months
  • check mark Zero fees until your debt is resolved
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Key Facts

  • Recommend for people who have $10,000 or more in unsecured debt.
  • Member of the American Association for Debt Resolution (AADR)
  • Average debt consolidation program is 24-48 months

Pros

pros iconFree debt consultation

pros iconPositive customer reviews with an A+ BBB and 4.9-star Trustpilot rating.

pros iconNo credit score minimum

pros iconEstablished debt consolidation experts

pros iconFees are success based - only pay once they help you achieve a debt solution

Cons

cons iconMust have $10,000 or more in unsecured debt

cons iconUsing debt consolidation services can negatively affect your credit score

cons iconServices are not available in all states

cons iconFees may vary by state

cons iconFees based on total debt upon time of enrollment

  • check mark A+ BBB and 4.9-star Trustpilot Rating
  • check mark Free consultation
  • check mark Helped 300,000+ people pay off more than $1 billion

Standout option

November 2024

Popular Choice
View Details arrow

Key Facts

  • Recommended for more than $25,000 of unsecured debt
  • Fees between 18-25% of enrolled debt
  • Cannot be used for collateral-based debts
  • Only available in 32 states

Pros

pros iconCould help reduce the total debt owed

pros iconWilling to work with people who have been turned away or rejected by most other lenders or debt consolidation companies

pros iconOffers consumers more control over their current debt than making recurring minimum payments and increasing overall debt

Cons

cons iconThough debt can be lowered, the service itself does have a fee associated

cons iconEnrolling on to this program will lower your credit score

  • check mark Recommended debt: $25,000+
  • check mark Over $15 billion in debt resolved
  • check mark Served over 850,000 clients since 2002

Debt Consolidation Explained

For those who feel as if their debt is overwhelming, debt consolidation could be a viable option. Making monthly payments on a variety of financial obligations is time consuming. Missing payments, even by accident, could damage credit scores.

Debt consolidation combines financial liabilities into a single monthly payment. It’s an unsecured loan, so borrowers typically need good credit and a steady income to qualify. Often, the new loan has a lower interest rate and better terms than the individual debts. This saves the borrower money in addition to providing a means by which to pay down debt faster.

Recommended Debt Consolidation Services

How does debt consolidation work?

After getting approved for a debt consolidation loan, the borrower uses the funds to pay off their debts. This consolidates their debts into one monthly payment, which may be lower than their previous payments. Debt consolidation can be used for any type of debt, including credit cards, personal loans, and medical bills. Borrowers with less-than-perfect credit may still be able to get a debt consolidation loan, but they may have to pay a higher interest rate. A certified debt specialist can help borrowers understand their options and make the best decision for their situation.

Reasons to Consolidate Your Debt

Debt consolidation with the help of a debt consolidation company has some distinct benefits. Here are some reasons that borrowers may choose to pay off their various creditors through debt consolidation:

Bills are out of control

Juggling due dates, making multiple payments, and keeping track of balances on multiple accounts can be overwhelming. Combining those debts into a single monthly payment with a lower interest rate is one way to reduce the stress of out-of-control monthly bills.

It’s difficult to make minimum payments on credit cards

Making minimum payments on credit cards traps many borrowers in a cycle of debt that can last decades. For many people, the only way out is to pay off high-interest credit cards in full with a debt consolidation loan. Without an income high enough to make more than the minimum monthly payment, interest charges and fees make it nearly impossible to reduce the principal owed.

There’s no end date on debts

Some types of debt can trap borrowers in an endless cycle of payments. Consolidating these debts into a single loan with a defined interest rate and end date can, in some cases, help borrowers see progress and pay off their debt faster.

Top 3 Debt Consolidation Companies

freedom_l
  • Recommended debt: $25,000+
  • Over $15 billion in debt resolved
Get my rate
national DR logo
  • Minimum debt: $20,000
  • Become debt-free in 24-48 months
Get my rate
accredited
  • A+ BBB and 4.9-star Trustpilot Rating
  • Free consultation
Get my rate

What to consider when choosing a debt consolidation service

Whether a borrower chooses to use a professional debt consolidation service or go straight to a lender for a personal loan to pay off debts depends on their credit status and whether they need help getting and staying out of debt.

A reputable debt consolidation service won’t ask for money upfront to start the process of helping a borrower learn about their options. Look for a company that uses certified debt specialists to help their customers understand all the options for eliminating debt.

It’s important to read online reviews from current and past customers to understand whether a specific debt consolidation company is a good fit. This helps borrowers evaluate the trustworthiness of the company.

Recommended debt consolidation services

freedom_l
Freedom

Free, no-risk credit card debt relief consultation

None

Min Credit Score

$25K

Minimum Debt Amount

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

None

Origination Fee

None

Prepayment Fee

Pros & Cons

drop-down-btn
  • con-icon Could help reduce the total debt owed
  • con-icon Willing to work with people who have been turned away or rejected by most other lenders or debt consolidation companies
  • con-icon Offers consumers more control over their current debt than making recurring minimum payments and increasing overall debt
  • con-icon Though debt can be lowered, the service itself does have a fee associated
  • con-icon Enrolling on to this program will lower your credit score

Debt Relief Product Types

drop-down-btn
  • Debt relief consultation service

After a free phone consultation that includes a complete debt evaluation with a debt expert, borrowers can decide whether to enter into a program that helps with outstanding debts for less than the total amount owed. For those who owe debts that are in collections or who want to eliminate credit card debt and close accounts, this type of debt elimination plan offers a single point of contact with a company that works with all creditors.

national DR logo
National DR

Get a free savings estimate today

$10K

Minimum Debt Amount

24 - 48 months

Repayment terms

No

Soft Credit Pull

Marketplace

Lender Type

N/A

Other Fees

15-25%

Origination Fee

None

Prepayment Fee

Pros & Cons

drop-down-btn
  • con-icon Helps consumers realize approximate savings of 45% before fees.
  • con-icon No upfront fees.
  • con-icon 21,000 Five-Star reviews on Trustpilot.
  • con-icon A+ Rating with the BBB.
  • con-icon Largest footprint in the industry
  • con-icon On average, become debt-free in 24-48 months.
  • con-icon DR program can cause a temporary drop in your credit score.
  • con-icon The debt settlement process can take up to 48 months.
  • con-icon Unlike a cash-out refinance, you will not be able to get cash from a debt settlement program.

Debt Relief Product Types

drop-down-btn
  • Debt relief consultation service
  • Debt consolidation loans

accredited
Accredited

Significantly Reducing Your Monthly Payments

$10K

Minimum Debt Amount

$1K-$100K

Loan Amount

4.9-35.99%

APR. Fixed Rate

4-84 months

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

1% - 6%

Origination Fee

Varies

Prepayment Fee

Pros & Cons

drop-down-btn
  • con-icon Free debt consultation
  • con-icon Positive customer reviews with an A+ BBB and 4.9-star Trustpilot rating.
  • con-icon No credit score minimum
  • con-icon Established debt consolidation experts
  • con-icon Fees are success based - only pay once they help you achieve a debt solution
  • con-icon Must have $10,000 or more in unsecured debt
  • con-icon Using debt consolidation services can negatively affect your credit score
  • con-icon Services are not available in all states
  • con-icon Fees may vary by state
  • con-icon Fees based on total debt upon time of enrollment

Debt Relief Product Types

drop-down-btn
  • Debt relief consultation service

Things to be aware of when it comes to debt consolidation

Certain types of debt aren’t ideal for credit consolidation

In some cases, it may be less expensive and faster to work directly with the creditor. For example, medical debts may be eligible for reduction or elimination if you meet certain income thresholds.

Before considering a consolidation loan for medical debts, contact the original creditor to find out if you may be eligible for financial assistance. Even if you can’t qualify to have your medical debts reduced by the doctor or hospital, ask about entering into a payment plan with regular payments that fit into your budget. Most medical facilities offer no-interest payment plans that will help you eliminate the debt without hurting your credit.

Tax debts may also be eligible for a low-interest payment plan through the Internal Revenue Service (IRS), depending on your income level and financial situation. Compare the interest on a payment plan through the IRS before paying off tax debts with a consolidation loan.

It’s not recommended to use credit cards after consolidating balances

Consolidation loans can sometimes be a way to pay off credit cards with a lower interest rate and a fixed monthly payment. However, it's important to be disciplined and avoid using credit cards in an unmanaged way again. Even though closing accounts could hurt FICO credit scores, if the temptation to max out credit cards is too great, it’s better to cancel the cards.

Consolidation loans can drive borrowers deeper into debt

One advantage of using a reputable debt consolidation company to help evaluate debt consolidation options is having access to a debt expert that can help solve the spending and budgeting problems that led to high levels of debt.

Without actionable solutions to money problems, borrowers are likely to find themselves in worse shape with new debt in addition to monthly payments on their consolidation loan.

Consolidation scams are plentiful

Having a lot of debt is stressful. When researching consolidation companies, it’s crucial to take the time to find an organization that’s reputable, has great customer reviews, and has a long history of helping consumers get out of debt.

Be wary of consolidation companies that are new to the marketplace, make big promises, or require a deposit or funding fee upfront. Before turning over personal information to any debt consolidation organization, check their BBB ratings and reviews. Look for online reviews from customers who have completed the debt consolidation process.