Best Debt Consolidation Companies of 2024

Getting out of debt can feel like a monumental task, especially when it’s credit card debt. It can be easy to get complacent with low minimum monthly payments, but when combined with high interest rates, they can keep you in debt for years to come. This situation can also ruin your credit.

I know how hard it can be to pay off debt, especially if emergency situations keep arising and you just can’t seem to gain traction. Ongoing debt stress is one of the reasons to consolidate debt.

Debt consolidation means combining multiple unsecured debts like credit card balances and personal loans into one new loan. Lenders offer debt consolidation loans that enable you to make one monthly payment, usually at a fixed rate, so you no longer need to manage multiple debts with different due dates and rates.

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How we evaluate products

In determining our list of debt consolidation options, we examined popular companies and organized them according to factors that we consider critical to the consumer. We did not evaluate all companies in the category, but tried to consider a variety of needs.

Focus on debt consolidation loans: Some debt relief companies also offer (or only offer) debt settlement or debt management plans, but for this roundup, we focused solely on companies that provide debt consolidation loans. Lenders and companies that offer personal loans intended to help you consolidate debt are included, not companies that claim to negotiate your loan amounts with creditors.

Loans for a range of credit scores: We aimed to provide a well-rounded set of debt consolidation companies, from those that require a good or very good credit score to those that may offer loans to you even if you have fair or poor credit.

Better Business Bureau accreditation: We selected only debt consolidation companies that are accredited by the Better Business Bureau, in order to ensure a minimum higher standard for business practices. Most also have very high customer ratings.

Here’s our ranking of the best debt consolidation companies and what you should know before you choose one.

• Best for a variety of debt options: AmONE
• Best for excellent customer ratings: LendingClub
• Best for fast funding: Upstart
• Best for large loan amounts and good credit: SoFi®
• Best for rate discount options: Achieve
  
• Best for low interest rates: Lightstream
• Best for lower credit borrowers: Best Egg

The best debt consolidation loans of 2024

	Loan amounts	Loan terms	APR	Credit needed
AmONE	$2,000 to $100,000	12 to 84 months	3.99%-35.99% (as of May 31, 2023)	600+
LendingClub	$1,000-$40,000	2-5 years	8.98%-35.99% (as of 07/01/24)	600+
Upstart	$1,000 to $50,000	36 or 60 months	7.80%-35.99% (as of 07/01/24)	300+
SoFi®	$5,000 to $100,000	24 to 84 months	8.99%-29.99% (as of 09/05/24) with all discounts1	No minimum
Achieve	$5,000-$50,000	12-60 months	8.99% to 35.99% (as of 9/24/24)	620
Lightstream	$5,000 to $100,000	24 to 144 months	As low as 6.99% (as of 07/24/24) with autopay	670+
Best Egg	$2,000 to $50,000	36 to 60 months	8.99%–35.99% (as of 07/01/24)	Not disclosed

There are several ways you can consolidate your debt with a loan, but some are better than others. It’s important to shop around and compare multiple options before you decide on one. Here are our top choices:

Best for a variety of debt options: AmONE

• Loan amounts: $2,000 to $100,000
• Loan terms: 12 to 84 months
• APR: 3.99%-35.99% (as of May 31, 2023)
• Credit needed: 600

AmONE Personal Loans is a lending marketplace that can connect you with multiple lenders with a single inquiry.² Loan amounts range from $2,000 to $100,000. AmONE works with credit scores from excellent to poor, or even those without a credit score, but it cannot guarantee loan approval.

If you don’t qualify for a personal loan to consolidate your debt, the company can provide you with some alternatives. More specifically, you may be able to get on a debt management plan or begin the process of debt settlement.

For this roundup, we’re focused on debt consolidation — essentially combining your debts to make one monthly payment — rather than debt settlement, particularly because debt settlement can really damage your credit since you don’t pay the full amount.

AmONE could be an excellent choice to get out of debt with bad credit, but even people with decent credit can benefit from the personal loan marketplace because it makes it possible to compare several options side by side.

Visit AmONE Personal Loans | Read our AmONE Personal Loans review.

Best for excellent customer ratings: LendingClub

• Loan amounts: $1,000-$40,000
• Loan terms: 2 to 5 years
• APR: 8.98%-35.99% (as of 07/01/24)
• Credit needed: 600+ (higher credit for better interest rates)

LendingClub offers personal loans for purposes like debt consolidation. With a LendingClub loan, you can choose to have the company pay your creditors directly, eliminating the need to manage multiple debts yourself.

There is an origination fee of 3%-8% applied when you receive your loan, which is a downside, but where I think LendingClub makes up for that extra cost is in its customer satisfaction.

Not only is LendingClub accredited by the Better Business Bureau with an A+ rating, but its BBB customer ratings average 4.42 out of 5 stars. Trustpilot reviewers give LendingClub 4.7 out of 5. Those are pretty great testimonials in my book.

Visit LendingClub | Read our Lending Club Personal Loan Review.

Best for fast funding: Upstart

• Loan amounts: $1,000 to $50,000
• Loan terms: 36 or 60 months
• APR: 7.80%-35.99% (as of 07/01/24)
• Credit needed: 300+

Upstart prides itself on fast funding for debt consolidation loans. You can start by checking your rate in about five minutes, and Upstart says if you get approved, you may be able to secure funding in one business day. While the terms you can choose from are somewhat limiting at just three or five years, there are no prepayment penalties if you want to pay off your loan early.

I like the range of loan amounts for Upstart and the fact that the company allows anyone to apply for a loan, even with a poor credit score. However, not everyone will be approved for a loan. In fact, Upstart claims its approval system, which is not based entirely on credit, provides 43% lower rates than its competitors that use a credit score-only model.

Compare rates at Upstart | Read our Upstart review.

Best for large loan amounts and good credit: SoFi

• Loan amounts: $5,000 to $100,000
• Loan terms: 24 to 84 months
• APR: Fixed rates ranging from 8.99%-29.99% (as of 09/05/24) with all discounts
• Credit needed: No minimum stated by SoFi, but some sources say 680

I like SoFi for debt consolidation loans as well. The company is a top loan provider that charges no origination fees, no prepayment penalties, and no late fees. SoFi also offers rate discounts for options like autopay and direct deposit into a SoFi Checking and Savings Account.

SoFi personal loans range in amount from $5,000 to $100,000, and you can see if you prequalify for a loan in 60 seconds. While SoFi doesn’t have a minimum credit score requirement, those with good credit will be better off when it comes to interest rates. When you are approved, you may have the ability to get funding that same day.

Compare rates at SoFi | Read our SoFi loans review.

Best for rate discount options: Achieve

• Loan amounts: $5,000-$50,000
• Loan terms: 2, 3, 4, or 5 years
• APR: 8.99% to 35.99% (as of 9/24/24)
• Credit needed: 620

With Achieve, you can tackle your debt through several options, one of which is a personal loan intended for debt consolidation. You’ll want to take the loan proceeds to pay down your individual debts.

Your maximum loan amount is $50,000, which could make a huge difference to a lot of us carrying debt. You don’t need excellent credit, since Achieve’s minimum credit score to qualify for a loan is 620, which falls in the “Fair” range for FICO scores.

Many debt consolidation companies offer discounts, and Achieve offers discounts if you do the following:

• Add a qualified co-signer
• Share proof of retirement funds you’ve amassed
• Pay creditors directly with your loan proceeds

Visit Achieve

Best for low interest rates: Lightstream

• Loan amounts: $5,000 to $100,000
• Loan terms: 24 to 144 months³
• APR: As low as 6.99% (as of 07/24/24) with autopay
• Credit needed: 670+

For borrowers who qualify, Lightstream’s rates are some of the most competitive you’ll find. Lightstream’s personal loan rates start at 6.99% (as of 07/24/24). Lightstream offers loan amounts ranging from $5,000 to $100,000.⁴

Lightstream also has a Rate Beat Program that will knock off 0.10% from the lowest interest rate offered by a competitor. Its Loan Experience Guarantee offers $100 if you have any complaints and are willing to fill out a survey that explains how Lightstream can do better.

Compare rates at Lightstream | Read our Lightstream review.

Best for lower credit borrowers: Best Egg

• Loan amounts: $2,000 to $50,000
• Loan terms: 36 to 60 months
• APR: 8.99%–35.99% (as of 07/01/24)
• Credit needed: Not disclosed, Best Egg checks other factors in addition to your credit score

For those looking to consolidate debt with a poor credit score, Best Egg likely still has an option for you. In fact, applying for a loan with Best Egg won’t even affect your score if you’re not approved. I like the quick and simple application process that lets you know if you’re approved instantly, and you can have the funds within one to three business days.

Best Egg also has tools to help you build your financial health. Along with a mobile app to manage your loan, you can access your credit score for free and get regular updates as you pay your loan down. You’ll also get insights so you can focus on making financial moves that improve your score.

Visit Best Egg | Read our Best Egg review.

What is a debt consolidation loan?

A debt consolidation loan is typically an unsecured personal loan that you use specifically to pay off high-interest debts — typically, it’s to help you get out of credit card debt. Debt consolidation loans typically have a fixed rate, as opposed to the variable interest rate on your credit cards.

Here’s how it works: You find a personal loan lender, then you complete a loan application. Once you receive the funds, you use them to pay off your credit card balances.

You’ll then have just one monthly payment on the new loan instead of multiple payments and due dates to handle with your credit cards. Of course, there are some exceptions to this process, as we discussed above with Tally. But in general, this is what you can expect.

Debt consolidation loans work best if the interest rate on the loan is lower than the rate on the debt you’re paying off. If they’re similar or even slightly higher, it still may be worth it because the loan gives you a set repayment schedule instead of a minimum payment that can keep you in debt indefinitely.

The best debt consolidation loans offer a mix of low interest rates, flexible repayment terms, easy payment options, no fees, and more. You may be able to pay off credit card debt, personal loans, retail financing, payday loans, or medical debt with a consolidation loan.

Other options for moving beyond debt may include debt settlement, a debt management plan, or in the worst-case scenario, bankruptcy. However, debt consolidation is generally preferable to all of these if you can swing the payments, as you still pay off the debt in full and your credit score is likely to improve with proper payoff of the loan.

How to pick the right debt consolidation loan for you

For the most part, debt consolidation loans all do the same thing. But each one can carry different features that can impact your ability to pay and how much interest gets charged. Here are some of the factors to consider when you’re shopping for a debt consolidation loan:

• Loan amounts: Make sure you pick a lender that can give you what you need. If your desired loan amount doesn’t meet a lender’s minimum loan amount, it’s better to go somewhere else than to borrow more than you need.
• Pre-qualification: Many lenders allow you to get pre-qualified and view a loan offer before you submit an application. This process involves just a soft credit check that doesn’t hurt your credit score. If you want to avoid multiple hard inquiries on your credit reports in a short time period, opt for lenders that offer pre-qualification as a first step.
• Repayment terms: The length of your loan determines how long you’ll be in debt and, to a lesser extent, what your monthly payments and interest rate will be. Longer repayment terms are typically associated with lower monthly payments but also higher interest rates. Be sure you can realistically make the payments for the loan term.
• Interest rates: Some lenders specialize in working with people who have stellar credit and offer low loan rates. But others may provide more accessibility to people with lower credit scores in exchange for higher interest rates. This is the most important reason to shop around because scoring a lower interest rate can save you hundreds or even thousands of dollars.
• Origination fee: Many lenders charge an upfront fee, which is taken from your loan disbursement before you receive it. These fees can range from 1% to 8% in some cases. Not all lenders charge one, so if you have great credit, look for lenders that don’t have an origination fee.
• Prepayment penalties: These are uncommon with personal loans, but they do exist. A prepayment fee penalizes you if you pay off your loan ahead of schedule. (I really hate these — try to avoid this so you can pay off debt early if your finances allow for it.)
• Autopay: Choose autopay when you can. This helps avoid missed payments and late fees, and many lenders discount your rate when you sign up for autopay.
• Approval time: Traditional banks and credit unions might take days to approve you for a loan, whereas you could be approved on the same day and get your funds within a day or two with online lenders. In general, I don’t think a few days’ wait will hurt you, but if you’re eager to get started, look for quick turnarounds.
• Other features: Some lenders may also offer other features to their borrowers, such as access to your credit score, unemployment protection, interest rate discounts, the ability to add a cosigner, joint applications, and more.

Resist the temptation to focus solely on the interest rate when choosing your loan, though. The best debt consolidation loans offer a mix of features that can make it easier to pay down your debt.

With so many different features to watch out for, it’s crucial that you review each debt consolidation loan carefully, so you can pick the right one for you.

FAQ

Products that didn’t make our list

I want to be sure to mention that traditional banks and credit unions also offer personal loans and debt consolidation loans, so don’t rule those options out when researching how to pay off debt.

Working with a bank you already have a relationship with can be a real benefit, since they may offer additional discounts and a personal touch when handling your loan. So here are a couple to consider, and you may wish to check whether your bank offers debt consolidation loans as well.

Wells Fargo

Personal loans with Wells Fargo come with APRs from 7.49%-23.24% (as of 07/01/24) (the lowest rate with a relationship discount, and terms range from 12 to 84 months. However, you must have had an open Wells Fargo account for at least 12 months prior to applying for a personal loan.

Citi

If you qualify for a Citi personal loan, you’ll have an APR from 11.49%-20.49% (as of 07/01/24), up to 60 months to repay, and you can borrow $2,000 to $30,000. Citi personal loans charge no fees, plus you get a 0.5% APR discount if you enroll in automatic payments upon loan origination. You don’t necessarily have to be a current Citi customer to qualify.

An alternative: Freedom Debt Relief

If you’re worried that debt consolidation and debt management aren’t in the cards for you, Freedom Debt Relief provides a direct way to start the debt settlement process.⁵

With Freedom Debt Relief, you don’t have to pay their fee until the company has successfully negotiated your balance. But that charge can be anywhere between 15% and 25% of your enrolled debt amount, so it can be expensive, depending on how much debt you have. Though debt settlement could still cost less than bankruptcy, and give you the clean financial slate you need to get back on the right track.

In general, debt settlement is best suited for people who are already behind on payments. Because the process requires you to stop making your payments for a period of time, the potential damage to your creditworthiness is a moot point if you’re already behind.

If your credit is in good enough shape for a debt consolidation loan and you can afford the monthly loan payments, it’s best to avoid the potential credit woes that debt settlement can cause.

Visit Freedom Debt Relief | Read our Freedom Debt Relief review.

Bottom line

Learning how to pay off debt can feel overwhelming, but there are several approaches you can take. Debt consolidation is one of the best ways to pay down high-interest credit card debt, but it’s important to take your time to shop around and compare multiple loans and other approaches before you settle on one.

You might find benefits like a lower overall interest rate on your debt, more manageable monthly payments, and convenience of a single monthly payment.