Guides / Lower the cost
Debt consolidation loans, explained
One payment, maybe a lower rate, if the numbers work.
A consolidation loan pays off several debts with one new loan. It can lower your rate and simplify payments, but it doesn't reduce what you owe.
Compare carefully
- The APR, including any origination fee
- The total you'll pay over the whole loan, not just the monthly payment
- A longer term means lower payments but often more interest overall
Be careful
- Avoid turning unsecured debt into debt secured by your home or car
- Close or freeze spending on paid-off cards if you're tempted to use them
- Watch for lenders that guarantee approval or ask for fees up front
General information, not financial advice. Nickel Keepers isn't paid by any lender, card company or debt relief company.