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Best Debt Consolidation Loans

High-interest debt can be expensive and time-consuming to pay off, but personal loans for debt consolidation can help. Debt consolidation loans give borrowers the opportunity to pay off several accounts while wrapping up multiple monthly payments into one, typically at a lower APR. This can help you save a significant amount of money.

Debt consolidation loans are usually available at lower interest rates than other types of debt, like credit cards and payday loans. The best personal lenders for debt consolidation can help you pay off debt faster, with a chance to lower your payments and get relief from unmanageable monthly expenses.

Best Personal Loans for Debt Consolidation of 2022

Discover

Rating4.3


Discover
  • Starting interest rate: 5.99%
  • Minimum credit score: Not disclosed
  • Loan terms: 36–84 months

Why We Chose It

Discover Bank offers debt consolidation loans with APRs starting as low as 5.99%. Loans can be received as quickly as one business day, and payments can be made directly to creditors.Pros and Cons

Pros

  • No origination fee
  • Pre-approval does not impact credit
  • Same-day loan decisions

Cons

  • Credit requirement is not disclosed
  • $39 late payment fee
  • No joint applications or co-signers

Overview

Discover launched its first financial product in 1985 and is now one of the largest credit card issuers in the U.S. But the company also offers personal loans for debt consolidation in all 50 states.

Discover’s personal loan stands out with APRs that range up to 24.99% but start as low as 5.99%. Loan amounts start low too, from $2,500 up to $35,000, and come with no origination fee, which can make Discover a much cheaper option than some other lenders. 

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Additional benefits include a rate quote with no hard credit pull. Borrowers can get same-day loan approval and receive funds in as little as one business day.

Drawbacks include a $39 fee for late payments. Discover does not disclose credit requirements upfront, but applicants are required to have a household income of at least $25,000 to qualify. Loans can’t be used to pay off secured debt or to pay off a Discover credit card. 

Discover has poor customer ratings on Trustpilot, with customers citing a variety of challenges related to being approved for financial products and managing their accounts, although this isn’t unusual for lenders.

Discover accepts applications for debt consolidation loans online or by phone, at 1-866-248-1255.

Read our full Discover personal loans review.

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Avant

Rating4.1


Avant
  • Starting interest rate: 9.95%
  • Minimum credit score: 580
  • Loan terms: 24–60 months

Why We Chose It

Avant works with borrowers who have poor credit. While the starting APR is high, and some may have to pay an administration fee, terms may still beat what other lenders offer to applicants with low credit scores.

Pros

  • Available to people with low credit scores
  • Pre-qualification does not impact credit
  • Funds available in one business day

Cons

  • Administration fee up to 4.75%
  • APR starts at 9.95%
  • Minimum loan amounts vary by state

Overview

Avant, a company founded in 2012, services loans from WebBank.

Borrowers give Avant high ratings for its quick and easy process, from loan application to funding. The lender offers pre-qualification with no hard inquiry, and funds are available in as little as one business day. 

Unique features of this debt consolidation loan include an exceptionally low credit score requirement of just 580. Avant also offers loan modification plans to help borrowers who struggle with repayment.

The downside is that APRs range up to 35.99%, and while Avant’s debt consolidation loans are available in amounts ranging from $2,000 to $35,000, minimum loan amounts vary by state. Late payments fees vary by state as well. Joint applications and co-signers are not allowed.

Applications can be submitted online, and Avant can be reached at 1-800-712-5407 for assistance. 

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Read our full Avant personal loans review.

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First Tech Federal Credit Union

Rating4.2


First Tech Federal Credit Union Logo
  • Starting interest rate: 6.70%
  • Minimum credit score: Not disclosed
  • Loan terms: 24–84 months

Why We Chose It

First Tech Credit Union stands out for its wide range of loan amounts and low maximum APR. Borrowers can go from application to funding in as little as one business day, and payments can be sent directly to your creditors. 

Pros

  • Low maximum APR of 18%
  • First payment can be deferred for 45 days
  • Same-day funding available

Cons

  • Must be a credit union member to apply
  • Lowest rates only available for 24-month term
  • Credit score requirement not disclosed

Overview

First Tech Federal Credit Union was founded in 1952 and has physical branches in eight U.S. states. The credit union offers personal loans for debt consolidation across all 50 states, with terms that can be attractive for borrowers with a variety of needs. 

Personal loans from First Tech range from as little as $500 up to as high as $50,000, and borrowers can choose from a 24- to an 84-month repayment period. The credit union also allows joint applications and co-signers.

It only takes a few minutes to complete an online application for a personal loan from First Tech Credit Union. From there, applicants who are approved can expect to receive funds in as little as one business day.

The maximum APR of 18% is relatively low (credit unions are capped at this rate). First Tech charges no origination fee or administration fee, and it has a fairly unique loan feature: You have the option to delay the first payment for 45 days. Borrowers should note that loans may accrue interest during that time.

First Tech doesn’t disclose its credit requirements upfront, but applicants can get pre-qualified and see a rate quote without a negative impact on their credit scores. Applications can be submitted online.1

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Read our full First Tech Federal Credit Union personal loans review.

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