Best Debt Consolidation Loans in March 2023

Paying off high-interest debts, like credit card debt, can be challenging. Debt consolidation is one way to make these debts more manageable. Combining your debts into one account gives you a single monthly debt payment with a lower interest rate.

When looking for a debt consolidation loan, seek out options with low-interest rates, affordable repayment terms and little to no fees. MoneyGeek analyzed a broad range of lenders to help you find the best personal loans for debt consolidation for your needs.

Debt consolidation is a way to combine some or all debts into one new credit line. This way, your debts are contained in a single monthly payment instead of multiple bills.

While debt consolidation doesn’t erase your debts, it can help lower your overall interest rate and monthly payment and make it easier to pay off credit cards, medical debt or other unsecured debts. A personal loan is one way of consolidating debts.

MoneyGeek evaluated different lenders using more than 35 individual data points to determine the best personal loan lenders for debt consolidation. Based on our analysis, Lightstream is the top option for borrowers who need a debt consolidation personal loan.

Debt consolidation is a way to manage existing debts. Typically, it is for unsecured credit obligations like loans, medical debt and credit card debt.

When you consolidate your debt with a personal loan, you’re essentially borrowing a larger amount of money to pay off several smaller debts. In doing so, you end up with a single, new account that could lower your interest rates. Debt consolidation helps simplify your monthly bills and potentially allows the borrower to get out of debt faster.

Debt consolidation using personal loans may be an excellent option for individuals with manageable monthly debt payments who want a fixed monthly payment. Those looking for a way to lower their overall interest rate may also find debt consolidation beneficial.

There are various factors lenders consider when determining whether to approve or reject a personal loan application. These include credit scores, income details, employment, current debts, loan amounts and terms. Gathering this information ahead of time can help you find the best personal loans for debt consolidation that you qualify for.

MoneyGeek breaks down the best steps to take to find the right personal loan for your needs.

MoneyGeek recommends calculating your monthly payment — especially if you are pre-approved by a lender — to make sure you can repay the loan. Calculating your monthly payment ahead of time also allows you to evaluate if you need to adjust your payment term, loan amount and other parameters.

The best personal loan lender for consolidating your debt may vary based on your individual needs. MoneyGeek answers some frequently asked questions about using a personal loan for debt consolidation to help you make an informed decision.

We reviewed over 30 personal loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

Within each ranking criteria category, we considered several individual data points that we feel carry the most weight when choosing a personal loan lender for debt consolidation. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.

Here at MoneyGeek, we value you — the consumer — so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like prequalification, payment options and mobile apps.

After careful consideration and calculation, our picks are decided and chosen with your best interest in mind. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender to consolidate your debts and meets your needs.