Debt Consolidation Loans
Simplify your finances. Compare and see today’s offered rates.
How much would you like to consolidate?
Loan amount
Loan purpose
Loan consolidation
Zip code
Credit Rating
Poor (300 - 619)
Fair (620 - 659)
Good (660 - 719)
Excellent (720 - 850)
This Lantern site is operated by SoFi Lending Corp. in cooperation with Engine by MoneyLion. The preliminary loan offers presented on this site are from lenders that pay SoFi and Engine by MoneyLion compensation for marketing their products and services on this site. This affects whether a lender is featured on this site and could affect the order of presentation. Lantern by SoFi does not include all lenders in the market nor all of their available offerings.
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What Are Debt Consolidation Loans?
How Do Personal Loans for Debt Consolidation Work?
Can Any Debt Be Consolidated?
Pros and Cons of Debt Consolidation Loans
Pros of debt consolidation loans
Your credit score: If you have a good credit score, you pose less of a risk to the lender, meaning you’ll likely qualify for a lower rate. The loan term: Longer loan terms present more risk to the lender, so rates tend to be higher. Your current financials: Lenders will assess your creditworthiness based on factors like monthly income, debt-to-income ratio (monthly debt divided by monthly income), and existing debt. A lower debt-to-income ratio also indicates less risk to the lender, meaning they may offer you a lower rate.
Cons of debt consolidation loans
When Can Debt Consolidation Be a Good Idea?
You can consistently make timely payments, since late and missed payments can add fees and other charges to your loan balance You qualify for an interest rate that’s lower than the rate or rates on the debts you plan to consolidate You feel overwhelmed by the number of monthly payments you have — and have been missing them.
Getting a Debt Consolidation Loan
Be at least 18 years old. Be a U.S. resident. Not currently be bankrupt or in foreclosure. Have a credit score that’s above the mid-600s to qualify for favorable rates and terms. Have a debt-to-income ratio below 45 percent.
Checking your credit score and gathering necessary documents
Comparing and prequalifying with debt consolidation lenders
Submitting your application for a debt consolidation loan
Debt Consolidation Loan Alternatives
Home equity
Debt settlement
Balance transfers
Credit counseling
Debt Consolidation vs Debt Management vs Debt Settlement
Tips for Paying Down Debt
Evaluate your financial situation. Figuring all the debts you owe and the different interest rates from your credit card statements will ultimately help you determine which accounts you should prioritize. If possible, try to focus on paying the debts with the highest interest rates first. Create a budget and stick to it. You won’t reduce your debt with the same spending habits. Refine your budget by eliminating unnecessary expenses and devoting the cash instead to paying down debt. Employ a payment strategy. You can try implementing the snowball method, where you pay your smallest debts first. Or, you could try the debt avalanche method and start by paying off your high interest rate balances.