When you’re juggling multiple credit cards, medical bills, or payday loans, a debt consolidation loan, a single loan used to pay off multiple higher-interest debts. Also known as debt merger loan, it’s not magic—it’s a tool to simplify what’s broken. The goal isn’t just to reduce monthly payments. It’s to stop spinning your wheels paying interest on interest. If you’re paying 20% on your credit cards and 15% on a personal loan, combining them into a 9% loan doesn’t just feel good—it saves real money.
But not every personal loan, an unsecured loan used for various purposes, including debt repayment is a good fit. Lenders look at your credit score, a three-digit number that shows how reliably you’ve paid back money in the past. A score below 600 might get you a loan, but at a rate higher than your current credit cards. That’s worse than doing nothing. On the flip side, a score above 700 opens doors to rates under 10%, sometimes even under 7%. That’s where real savings happen.
What you’re really buying isn’t just a new loan—it’s peace of mind. One payment. One due date. One lender to deal with. But you’ve got to watch the fine print. Some loans charge origination fees of 1% to 8%. Others have prepayment penalties if you pay off early. And if you keep using your old credit cards after consolidating, you’ll end up with the same debt plus a new loan. That’s not progress. That’s a trap.
People in the UK use debt consolidation loans differently than in the US. Here, it’s often tied to remortgaging or equity release, especially if you own property. But if you don’t have home equity, your best bet is an unsecured personal loan. That’s where most of the posts below focus—real lenders, real rates, real terms from 2025. You’ll see comparisons between Upstart, LendingClub, and other top players. You’ll find out which ones actually approve people with fair credit. And you’ll learn how to avoid the ones that sound great but charge hidden fees.
There’s no single "best" debt consolidation loan. It depends on your score, your debt amount, and how disciplined you are after you consolidate. The posts below don’t guess. They show you exactly what’s available right now, who qualifies, and what the monthly payments look like for different loan sizes. Whether you owe $5,000 or $20,000, you’ll find examples that match your situation. No theory. No fluff. Just what you need to decide without regret.
Debt consolidation loans typically have terms of 3 to 7 years. How long you actually pay depends on your loan terms, interest rate, and whether you make extra payments. Paying faster saves money and gets you debt-free sooner.
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