Frequently Asked Questions

Debt consolidation is a legitimate, widely used financial tool — banks, credit unions, and online lenders offer consolidation loans every day. It simply combines multiple balances into one loan with a single monthly payment, often at a lower interest rate.

What you should avoid are companies that demand large upfront fees before doing anything, or that “guarantee” a specific rate or result before ever seeing your numbers. Any loan terms you’re offered should be spelled out clearly before you commit.

There’s no strict minimum for debt consolidation — it can make sense across a wide range of balances, and it’s most worthwhile when you’re carrying several high-interest debts like credit cards, personal loans, or medical bills.

Secured debts like mortgages and car loans, plus federal student loans, generally are not the focus of these programs.

Checking your options does not — the initial evaluation involves no hard credit pull. If you go on to apply for a consolidation loan, the lender’s hard inquiry can cause a small, temporary dip. Over time, consolidation can actually help your score: on-time payments on one loan and lower credit card utilization both work in your favor.

Worth keeping in perspective: if you’re already missing payments, your score is taking damage every month on its current path.

Nothing. The evaluation and the specialist consultation are completely free, and there is no obligation to enroll in any program. If a program does fit your situation, all fees are explained clearly before you commit to anything.

It depends on the loan term you choose — most debt consolidation loans run 24–60 months, with a fixed payoff date you know from day one. Compare that to making minimum payments on high-APR cards, which can take decades.

When you consolidate, your existing balances are paid off — and once an account is paid, collection activity on it ends. In the meantime, the Fair Debt Collection Practices Act gives you rights: collectors can’t harass you, call at unreasonable hours, or misrepresent what you owe.

Loan availability, rates, and terms vary by state — lenders aren’t licensed everywhere. The quickest way to find out what’s available where you live is the free evaluation, which factors in your state automatically.

There isn’t one, but there are trade-offs worth knowing: the best consolidation rates require decent credit; a longer loan term can mean lower payments but more total interest; and consolidation only helps if you avoid running the paid-off cards back up. A specialist will walk through the downsides that apply to your specific situation — not just the upsides.