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Simplify Multiple Debts With Debt Consolidation
This guide explains how debt consolidation may help simplify multiple debts by combining them into one structured payment, making it easier to manage your budget and stay on track.
Debt consolidation can help simplify multiple debts by combining loans, credit balances, and other obligations into one structured payment plan. Instead of managing several due dates and payments, everything is brought together into a single monthly payment, making it easier to stay organized. This may help lower your overall monthly payment and make budgeting more manageable as you work toward paying down your debt over time.
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Programs from $10,000
How Debt Consolidation Works
You start by applying for a single new loan or debt consolidation solution designed to cover the total amount of your existing debts.
If approved, the funds are either disbursed to you or sent directly to your creditors, depending on the provider’s process.
Those funds are then used to pay off your existing debts in full, combining multiple balances into one.
Instead of managing several bills and due dates, you move to a single monthly payment with your new lender or provider.
By combining multiple debts into one structured payment, your overall monthly obligation may become more manageable. Instead of dealing with several separate payments that can add up and feel overwhelming, you move to a single payment that is easier to plan for and track.
How Debt Consolidation Can Help You
One Monthly Payment
Combine multiple debts into one plan with a single payment and due date.
Potential Interest Savings
Debt consolidation may help reduce interest by replacing higher-rate debts with one option.
A Clear Repayment Timeline
Follow a set schedule so you know when your debt may be fully paid off.
More Predictable Payments
Make one steady monthly payment that’s easier to budget.
Easier to Stay Organized
Fewer accounts make it simpler to manage your finances.
Featured Providers
When to Consider Debt Consolidation
It may be a good option if:
You’re juggling multiple debts and want a simpler way to manage them
You prefer one monthly payment instead of several different due dates
You want a more structured and predictable repayment plan
You’re focused on organizing your finances and working toward paying down debt
See how debt consolidation could work for you.
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Choose the right loan for your situation
Different situations call for different options:
If you have less than perfect credit, see options designed for your profile
If you have fair credit (640 to 679), explore lenders that work for you
If you want to estimate your savings, try our debt consolidation calculator
If you're looking by state, see top providers in your state
How to Get a Debt Consolidation Loan
Add up your debts so you know exactly how much you need to consolidate
Check your credit profile so you understand your starting point
Compare providers based on minimum debt, program length, fees, and customer experience
Pre qualify with a soft credit pull to see your options without affecting your score
Apply or enroll with your chosen provider
Receive your plan and start making one simple monthly payment
Add up your debts so you know exactly how much you need to consolidate
Check your credit profile so you understand your starting point
Compare providers based on minimum debt, program length, fees, and customer experience
Pre qualify with a soft credit pull to see your options without affecting your score
Apply or enroll with your chosen provider
Receive your plan and start making one simple monthly payment
Get started with Accredited.
See your options in 60 seconds.
Ready to simplify your debt?
Get started with Accredited
with no impact to your credit.
Frequently Asked Questions
Yes, debt consolidation can be a good idea for managing multiple debts, as it combines several payments into one and can make repayment easier, simpler, and potentially lower your monthly costs.
What is Debt Consolidation?
Debt consolidation is a financial strategy designed for those who are managing multiple unsecured debts. The primary goal is to simplify your financial life by combining those various monthly obligations into a single, more manageable payment.
How Does Consolidation Work?
Debt consolidation is a financial strategy in which you combine multiple high-interest debts into one loan with a single monthly payment. The process typically involves getting a personal loan, using the funds to pay off your existing debts like credit cards or medical bills, and then repaying the new loan over a set period. As a result, you’ll have just one manageable monthly bill instead of many.
Representative Example
For a $20,000 personal loan with a 48-month repayment term and a 6.99% APR (which may include an origination fee), your required monthly payment could be around $479. Over the life of the loan, the total amount paid back would be approximately $22,981. The APR for your loan may be higher or lower, as the actual rate depends on your financial profile, loan term, and other factors.
Typical Loan
Debt consolidation loans can accommodate a wide range of financial needs. Repayment periods are generally structured from 2 to 5 years (24-60 months). Your specific monthly payment is determined by the total amount of your enrolled debt and the repayment term you choose.