What is loan consolidation?

Imagine getting enough money to pay off all of your outstanding loans in one fell swoop: that's the essence of loan consolidation. Instead of making multiple payments every month - for your credit card loans, student loans, and so on - you pay them off with a bigger loan at a lower interest rate. Now, you have one monthly payment to make instead of several.

Is loan consolidation something I should consider?

If you have more than one loan, especially with high interest rates, loan consolidation is definitely worth looking into. It can also be one of several strategies you use to avoid bankruptcy, by simplifying your budget and helping you get on top of your finances.

Isn't loan consolidation...basically taking out another loan?

In some cases, yes. There are counseling services that work with consumers like you, to evaluate your financial situation and determine the best course of action; their recommendations may or may not include taking out a loan to consolidate your loans. A new loan makes sense if your existing loans have high interest rates or if you're having a difficult time keeping track of your payment due dates and being on time.

Are there alternatives to loan consolidation?

Yes, and only you can decide which approach is right for you. Some people borrow money from friends or family to pay down loans. Others try to negotiate with the lenders to lower interest rates, or to get a deferment or forbearance put in place during times of economic downturns. There's also the possibility of working a side hustle to make extra money. But, when those attempts fail, what then? Loan consolidation provides a hassle-free alternative that makes good financial sense for many consumers.

Will using a loan consolidation service improve my credit history?

If you use it wisely, it should. Having all of your loans consolidated into a single payment will reduce your credit utilization, and it'll make it more likely that you don't have missing or late payments. Both of these things will raise your credit score.

How much will a loan consolidation plan cost?

It varies. For loan consolidation that happens with a new personal loan, you can expect to pay interest, as well as origination fees of 1-6% of the total loan amount. If you're taking advantage of financial counseling services that offer loan consolidation, they may come free of charge. A few counseling providers charge for their programs; be sure you know exactly what you're getting before you commit to a loan consolidation plan.

Is there a satisfaction guarantee?

If you opt for counseling services only, chances are good that you'll get them at no cost. Some providers may charge a fee for specific services, and in that case you may be able to get your money back if you don't feel that the help you got was worth the cost. If you're getting a new loan for consolidation purposes, there's not likely to be a way to reverse it (especially if you've already spent the loan proceeds!).

Is loan consolidation legitimate?

Absolutely. In fact, consolidation is one of the top purposes listed by Americans taking out a personal loan! It can be a smart way to reduce your interest payments, make it more likely that you'll be on time, and get back on track financially. But, it's up to you to use the consolidation loan wisely: to pay off all of your smaller loans with the funds you get, and not spend it on unnecessary things! Also, as you choose a resource to use for your loan consolidation, be sure to check out the provider's reputation with the Better Business Bureau and any other client feedback. That will give you the peace of mind that comes from knowing you've made a good choice for your financial future.

Best Loan Consolidation Companies for March 2026

Item: The Best Loan Consolidation Companies - Summary Reviews
Rating: 5
Author: Top Consumer Reviews

Sunday, March 15th We evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.

2026 Loan Consolidation Company Reviews

Which Loan Consolidation Companies Are the Best? Imagine you're juggling a bunch of balls, each representing a different loan - maybe for your car, your education, or some other big purchase. Sometimes it can feel like a lot to handle, right? Well, loan consolidation is like getting a bigger, sturdier basket to put all those balls in, making them easier to manage.

5.0

EXCELLENT

Best Option

National Debt Relief

Free initial consultation
Fees based on amount of money saved
New Customers: 1-888-413-0351

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EXCELLENT

5.0

On the National Debt Relief website

National Debt Relief's loan consolidation program offers a results-based approach to managing unsecured loans, with fees charged only upon successful negotiations with creditors. Clients pay based on the savings achieved through settlements, typically ranging from 15% to 25% of the total enrolled debt. Qualifying for the program requires a minimum of $7,500 in unsecured loans, and during a free consultation, certified debt counselors analyze your financial situation and discuss available options with no pressure. With a proven track record of assisting over 500,000 families and individuals, National Debt Relief boasts an "A+" rating and accreditation from the Better Business Bureau, alongside over 33,000 five-star reviews from satisfied clients. Their 100% satisfaction guarantee gives you even further peace of mind, allowing you to cancel without penalties if unsatisfied. Overall, National Debt Relief stands out as our top option for those seeking to reduce or eliminate overwhelming debt burdens through effective loan consolidation strategies.

4.5

GREAT

Great

TurboDebt

Free initial consultation
Connects you with other debt consolidation partners
In business since 2020

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GREAT

4.5

On the TurboDebt website

TurboDebt, a debt consolidation option established in 2020, is the fastest-growing debt relief company in the nation, with over $15 billion in settled debt for 500,000+ clients. They offer a free initial consultation, where they work to understand your specific financial situation, and then refer you to the most appropriate debt relief company. They've earned an impressive "A-" rating from the BBB and have thousands of five-star reviews. Even though they're the new kid on the block, their high customer ratings and proven record earn this company very high marks.

4.4

GREAT

Great

Curadebt

Free initial consultation
Minimum debt of $5,000 required
Fees only paid as debts are settled, typically no more than 20% of enrolled debt

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GREAT

4.4

On the Curadebt website

If you're looking for loan consolidation but not sure if it's the right option, you may want to check in with CuraDebt first. CuraDebt specializes in negotiating with creditors to secure substantial reductions in outstanding loan balances and other debts, offering cost-effective solutions with fees typically amounting to 20% or less of the total enrolled debt. Despite not being available in all 50 states, CuraDebt provides accessible services through a free consultation, and you can trust this company's commitment to client success and satisfaction. If you're struggling to repay your loans, credit cards or other debts, CuraDebt is well worth a call.

4.0

VERY GOOD

Very Good

SoFi^®

Loan consolidation through a new loan
Loans available from $5,000 to $100,000
Rates may include origination fees of up to 7%

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VERY GOOD

4.0

On the SoFi^® website

Since 2011, SoFi has provided help to over two million members, disbursing a staggering $50 billion in loans. Offering personal loans ranging from $5,000 to $100,000 with competitive APRs and flexible repayment terms, SoFi stands out as a prime option for those seeking to consolidate their existing loans. With perks like interest rate discounts for autopay and direct deposit, SoFi maintains an impressive reputation, earning an "A+" rating from the Better Business Bureau and thousands of five-star reviews from happy clients. For anyone navigating the complexities of loan consolidation, SoFi emerges as a compelling choice among loan consolidation companies.

3.9

VERY GOOD

Very Good

SuperMoney

Loan consolidation through a new loan
Loan referral platform
Transparent about their partners

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VERY GOOD

3.9

On the SuperMoney website

SuperMoney connects you with reputable lenders offering personal loans tailored for loan consolidation. Their platform simplifies the process of comparing loan offers from various sources, providing comprehensive information about lenders and user reviews. Whether you need a loan as substantial as $100,000 or as modest as $500, SuperMoney offers flexibility. Your privacy is prioritized, and SuperMoney boasts an impressive client rating average of 4.9 stars. For consolidation loan options, SuperMoney stands out as a reliable choice, earning a solid rating from us.

3.8

VERY GOOD

Very Good

Happy Money

Loan consolidation through a new loan
Loan amounts from $5,000 to $40,000
Origination fees of 1.5%-5.5%

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VERY GOOD

3.8

On the Happy Money website

Happy Money, previously known as Payoff, has been dedicated to guiding individuals towards financial freedom since 2009, having facilitated over $6 billion in loan consolidation for 300,000 clients. Their loans, ranging from $5,000 to $40,000, have competitive interest rates. While originally designed for credit card consolidation, Happy Money's loans can now be used for any personal, family, or household purpose, though direct payments are made only to credit card companies. Qualification typically requires a credit score of 640 or above, and a credit history of at least three years, with funds disbursed within 3 to 6 business days. With an "A+" rating from the BBB and fantastic loan terms and rates, Happy Money stands as an excellent choice for consolidation loans.

3.5

GOOD

Good

LendingTree

Loan consolidation through a new loan
Loans available up to $50,000
Referral service connects you with up to five lending partners

Read Full Review

GOOD

3.5

On the LendingTree website

When you're in need of consolidation on your existing loans, LendingTree steps up to assist you in exploring new loan options from a variety of lenders. With extensive experience and a broad network of financial partners, they're equipped to support you. Loans of up to $50,000 are available, but the interest rates and terms vary based on the lender you select and your individual circumstances. LendingTree furnishes abundant information about each lender within their network, serving as a valuable research tool even if you ultimately decide not to secure a loan through them. It's worth noting that some users have reported receiving numerous marketing messages from other companies after using LendingTree. Nonetheless, it remains a reliable platform for checking out consolidation loans from a wide range of lenders.

Continued from above...

Which Loan Consolidation Companies Are the Best?

Imagine you're juggling a bunch of balls, each representing a different loan - maybe for your car, your education, or some other big purchase. Sometimes it can feel like a lot to handle, right? Well, loan consolidation is like getting a bigger, sturdier basket to put all those balls in, making them easier to manage.

So, what exactly is loan consolidation? It's when you take multiple loans and combine them into one single loan. Instead of making several payments to different lenders each month, you make just one payment to a single lender. It's like streamlining your debts into a more manageable package.

For someone who's struggling to keep track of multiple loans or who wants to lower their monthly payments, consolidation can be a smart move. It can simplify their financial life and potentially save them money in the long run. It can also be beneficial for those who want to switch from variable interest rates to a fixed rate, providing stability and predictability in their payments.

How does loan consolidation work? In the first way, you need to apply for a consolidation loan through a reputable lender. They'll look at your credit history, income, and other factors to determine if you qualify. Once approved, they'll pay off your existing loans (or they'll send you the funds and it's up to you to transfer the payment), and you'll start making payments on the new consolidated loan.

Another way is to hire a company to negotiate with your current lenders. You make payments into an account that the service uses to strategically pay down your loans: maybe you can get one negotiated down from $10,000 to $6,000, which will be paid from what you've already put into the designated account, minus a fee based on the amount you saved. This stops you from having to take out yet another loan to pay off the ones you currently have.

However, loan consolidation might not be the best idea for everyone. For example, if you're already close to paying off your loans or if you have loans with really low interest rates, it might not be worth it. Additionally, if you're eligible for loan forgiveness programs or income-driven repayment plans, consolidating your loans could make you ineligible for these benefits.

Which option is the best to choose for loan consolidation? There are many good possibilities out there, so here are a few criteria to check out as you decide:

Loan terms. One important thing to note is that when you consolidate your loans, the terms of the new loan may be different from your original loans. This means your interest rate, monthly payment, and repayment timeline could change. So, it's crucial to carefully review the terms and make sure you understand how it will impact your finances before moving forward.
Available loan amount. Can the lender approve a new loan that will cover all of your existing loans?
Extra benefits. Some providers of consolidation loans include perks like interest rate discounts when you set up autopay, or unemployment protection that pauses loan repayments if you lose your job. You may also want to choose a service that gives you credit counseling or other help, so that the new loan will be a long-term benefit for your overall financial well-being.
Reputation. Choose loan consolidation with a provider that is known for offering top-notch customer service, with no ugly surprises during the application process or over the course of your repayments.

Ready to simplify your financial life with loan consolidation? The experts at Top Consumer Reviews have evaluated and ranked some of the most popular options out there today, so that you can streamline your payments, lower your monthly bills, or switch to a more manageable repayment plan.