by Luke Engram
A practical roadmap to consolidating and eliminating debt for good.
Debt Consolidation Calculator
See if combining your debts into one loan saves money. Compare personal loans, HELOCs, and balance transfers side by side.
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What Debt Consolidation Actually Does
Debt consolidation combines multiple debts into a single loan with one monthly payment — ideally at a lower interest rate. It doesn't reduce what you owe; it restructures it. The goal is to lower your average interest rate, simplify payments, and pay off debt faster.
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One Payment, One Lower Rate
LendingClub consolidates your debts into a single fixed-rate loan — check your rate without affecting your score.
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Personal Loan vs HELOC vs Balance Transfer
Personal loans are unsecured with fixed rates and terms. HELOCs use your home as collateral, typically offering lower rates but putting your home at risk. Balance transfer cards offer 0% intro APR for a limited period but charge transfer fees and revert to high rates after the promo ends. Compare your options on NerdWallet — See Options → to find the right fit.