What is debt consolidation?

Debt consolidation is a good way to get on top of your payments and bills when you know your financial situation:

  • It combines all of your debts into one payment.
  • It could lower the interest rates you’re paying on each loan and help you pay off your debts faster.
  • Paying off debts on time or faster can improve your credit score.

What is a debt consolidation loan?

A debt consolidation loan, or debt loan, lets you pay off debts from multiple lenders by repaying one single loan. This type of loan can be beneficial if you can find one with a lower interest rate, as it could reduce the total interest you’re paying on your outstanding debts.

Debt consolidation loans come in two forms: secured and unsecured. Before offering you a loan to consolidate debt, lenders will look at your outstanding debt and your credit history.

What can I use a debt consolidation loan for?

Debt consolidation loans can be used for many different types of debt. These include:

  • Credit cards
  • Personal loans
  • Store cards
  • Overdrafts
  • Payday loans
  • Medical bills.

Is debt consolidation right for you?

Consider it for:

One payment a month at a fixed rate for fixed rate loans

Consolidate debts from other loans and credit cards into one payment.

Faster debt payoff

Pay off debt sooner when you refinance and consolidate.

Lower interest rates

Save on interest depending on the loan or line of credit that you may qualify for.

Improved credit

Build or repair your credit by making timely payments and faster payoffs.

May not be right for you if:

Debt to income is too high

If your debt load is more than half your income or the amount you owe is overwhelming, it might be a better idea to explore debt relief options.

Current payments and rates

If your current debt monthly payments and rates are better than a debt consolidation, you’re better off staying put.

Debt due to spending habits

Use budgeting tools to help develop better spending habits before you consider debt consolidation.

Not sure how much you can save?

Use our debt consolidation form to see how you might save on monthly payments, and interest or pay off debt faster. Just answer a few quick questions and we’ll give you a personalized estimate.

Estimate your savings

What Our Clients Says

After just under 2 months with this program, I am pleased to say I am seeing progression to my first debt settlement! Alliance Advisors Group crossed my path and I’m glad they did. They’re delivering what they said they would. Am I pleased? Let me think… YES. Thanks Alliance Advisors Group!

William,

I’d refer anyone to go with this program if you feel like you are drowning. It has been a financial lifesaver

Peggy,

When COVID hit I lost my job. Alliance Advisors Group was there to help before we even had to try and figure things out.

Julie,

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