Consolidation
7 guides
Short answer
Consolidation saves money only if the new rate and fee cost less than carrying on at what you pay now. A lower monthly payment often means a higher total. Check yours in a minute
Your options compared
| Option | How it works | Can make sense when | Watch out for |
|---|---|---|---|
| Balance transfer card | 0% intro APR for a set period, usually with a 3–5% transfer fee | Good credit, and you can clear it before the intro rate ends | Rate jumps when the intro period ends |
| Personal (consolidation) loan | Fixed rate and fixed end date; may charge an origination fee | Your new rate plus fee beats what you pay now | A longer term can cost more in total |
| Home equity loan or HELOC | Lower rates, secured on your home | Rarely, and only with stable income | Turns card debt into debt you can lose your home over |
| Debt management plan | Set up by a nonprofit counselor; lenders may cut rates | You can't qualify for a cheaper loan | Cards are usually closed; small monthly fee |
All consolidation guides
How Do I Compare Debt Consolidation Loan Offers?
A side-by-side checklist for comparing offers, without ranking lenders by who pays us.
Jun 11, 2024How Long Should a Debt Consolidation Loan Be?
How term length changes your payment and your total cost.
May 17, 2024Should I Roll Credit Card Debt Into My Mortgage?
Rolling credit card debt into a mortgage can cut your rate, but it puts your home behind the debt. Compare cash-out refinancing, equity loans and HELOCs.
May 2, 2024Does Debt Consolidation Hurt Your Credit Score?
The short-term dip, the longer-term gain, and what decides which wins.
Apr 11, 2024What Credit Score Do You Need for a Debt Consolidation Loan?
Score ranges, DTI limits and other options if a loan isn't in reach.
Mar 2, 2024Should I Consolidate My Credit Card Debt?
A decision checklist for people juggling several card balances.
Feb 26, 2024How Does Debt Consolidation Work?
What consolidation is, the four main ways to do it, and when it backfires.
Feb 19, 2024