Best Debt Consolidation Reviews of 2023

If you’re looking to consolidate your debt, our guide can help you find the best debt consolidation solution for your needs. These companies offer loans and variety of debt relief options that can be used to pay off your existing debt, letting you make one monthly payment at a lower interest rate than what you’re currently paying. We’ll show you how to compare debt consolidation options and what kind of savings you can expect.


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The process of combing various unsecured debts – credit cards, personal loans, medical bills, etc. into a single bill is known as debt consolidation. So, rather than paying off 15 creditors individually each month, you combine all the bills into a single payment and only write a single check.

The 3 most popular forms of debt consolidation are debt consolidation loans, debt management plans & debt settlement programs. 

A debt settlement program is a cost-effective way to resolve your debts. Professional negotiators attempt to settle your debts with your creditors and then create a payback of 2 to 5 years that you can comfortably afford. 

Once that payback period end, you would be debt-free! In order to enter a debt settlement program, your accounts must already be 3 to 4 months delinquent.

The most common debts successfully negotiated through a debt settlement program are credit card and medical bill debt. Those creditors are unsecured and they understand that if you filed for bankruptcy, they would most likely get nothing. The last thing they want to do is force you into bankruptcy by being unreasonable. 

If a debtor shows that they are willing to enter a debt settlement program with a reputable company, the creditors work with you to restructure your outstanding balances and are willing to agree to a significantly reduced payment.

Credit cards and unpaid medical bills are not the only debts eligible for debt settlement. 

Personal loans, auto repossession balances, utility bills, mortgage “short pay” balances, private student loans, apartment leases, and cell phone bills are also eligible debts that can be submitted into a typical debt settlement program. 

There may be other types of debts available for debt settlement programs not listed above. 

If your credit score is good (700 or higher) then the ideal way you can consolidate your credit card loan is by applying for a zero-percent interest balance transfer credit card. The zero-percent interest is a preliminary rate that typically lasts for around 7 to 18 months.

Every payment made in that period will go straight toward decreasing your balance. When the preliminary rate concludes, interest rates rise to around 13 to 27 percent on the leftover balance.

Be careful, because balance transfer cards usually demand a transfer fee (typically 3%), and some even charge a yearly fee.

After you have fully paid off your debts, you can then pick one credit card and be extra careful with its use. 

Bills and debt consolidation require persistence, patience, and some form of management skills. You should begin by collecting all your dues from things such as utilities, credit cards, medical, and cell phone services. 

Add the aggregate sum you owe on the unsecured loan and then decide how much you can really manage to pay for each month while still being able to pay your basics like food, transportation and rent.

When you have a number in front of you, choose whether a debt management plan, a personal loan or a debt settlement plan will give you the maximum chance to get rid of your debt. Realize that this procedure usually takes around 3 to 5 years, and there are no quick-fixes and no short-cuts.

A debt management plan assists you in getting a cheaper rate of interest from creditors and lowers or even waiving late fee charges so you can comfortably pay off your monthly bills.  

It is important to remember that making use of a debt management plan will initially have a negative affect on your credit score. You would send a single payment to the debt management agency. 

The agency systematically divides the payment among your lenders. A debt management program will not work if you can’t keep up with your monthly payments. 

All it takes is one missed payment and your creditors can remove you from the program. This eliminates any benefits you’ve been granted and you can end up in the same or worse position from where you started. 


In some cases, debt consolidation can have a positive impact on your credit score. By consolidating debts, you may be able to secure a lower interest rate, which can help you pay off your outstanding balances more quickly. Additionally, consolidating your debts can streamline your payments, making it easier to keep track of due dates and avoid missed payments. Timely payments are a crucial factor in maintaining a healthy credit score, so this aspect of consolidation can be beneficial.

On the other hand, debt consolidation can also have some negative effects on your credit score. When you apply for a new loan or credit card to consolidate your debts, the lender will perform a hard inquiry on your credit report. This inquiry can temporarily lower your credit score by a few points. However, the impact of hard inquiries on your credit score is generally short-lived and lessens over time.