If you’re drowning in high-interest debt or tired of paying multiple bills each month, debt consolidation is a smart solution to consider. Whether your debt includes credit cards, student loans, medical bills or car payments, juggling these expenses can be stressful — or even impossible.
By consolidating your debt into a single, new loan, you can reduce your debt burden down to a single payment each month and potentially lower your interest rate, too.
But, which company should you trust to handle your debt consolidation?
Whether you have too many loans, credit card debt, or a combination of the two, there are many reputable debt consolidation companies that can help.
By researching companies and moving forward when you’re ready, you could be in a much better place – financially and emotionally – by this time next year.
Keep reading to learn more about the top debt consolidation companies of 2018 and how they can help.
1. Purefy (by PenFed)
Purefy, the student loan refinance tool from PenFed Credit Union, is a great product if you are juggling student loans, and/or are seeking to lower your rate — which are excellent. Purefy’s fixed rates start at 3.25%, and variable rates at 2.69%! Purefy’s application process is easy and quick — with loans processed within 3 to 14 days.
- Competitive rates
- No application fees
- Loans up to $300,000
- Received 4.5 (out of 5) stars from NerdWallet’s student loan refinancing scoring
- High customer service rating. You are assigned a personal advisor.
- Earn $200 for every friend you refer!
2. Self Lender
Self Lender is a unique product that offers a remedy for the real issues that people with debt face: If your credit score is low, you are buried in high-interest debt, and you can’t get a lower interest rate because your credit score is low. Oh, you also have no savings account. Self Lender gets at the root of all these issues.
How Self Lender works:
- Apply for Self Lender. If approved:
- Self Lender extends a with a reasonable interest rate, which you can use for debt consolidation (or other expenses).
- You pay this loan back monthly, and it is paid into an interest-bearing CD, or certificate of deposit. This is your money that you are saving!
- At the end of the term, your credit score is boosted, thanks to your awesome, timely payments.
- The CD is then released to you. BAM, you now have a savings account!
If you’re tired of juggling multiple bills with interest rates all over the map, SoFi may be the answer to your prayers.
This company offers debt consolidation loans from $5,000 – $100,000 with fixed rates that may be much lower than what you’re paying now.
SoFi also makes it easy to apply and get approved online.
Further, this lender offers loans for people with good or excellent credit.
SoFi Summary of Benefits
- No origination fees or prepayment penalties
- Get a 0.125% discount on an additional SoFi loan
- Live customer support 7 days a week
- If you lose your job, SoFi will pause your payments temporarily
- SoFi borrowers raised their credit scores by an average of 17 points after paying off credit card debt
While LendingTree doesn’t offer debt consolidation loans itself, it does connect users with a wide range of lenders that compete for your business via low-interest rates and beneficial terms.
LendingTree lenders offer easy-to-access personal loans with low rates and equally low ongoing fees.
Terms for their personal loans are also fairly short on average (1-5 years), making it possible for you to pay down consolidated debt quickly.
While loan amounts for various LendingTree debt consolidation products vary, you can typically borrow up to $35,000.
LendingTree also works with lenders who offer loans to people with bad credit, although interest rates may be higher.
LendingTree Summary of Benefits
- LendingTree makes it easy to compare loan rates and terms across several reputable lenders
- Receive your funds in less than 24 hours
- Competitive interest rates
- Some loans have no fees
- Easy online application process
5. Lending Club
If you’re someone who is considering options outside of a traditional debt consolidation loan, you may want to consider Lending Club.
This platform offers loans that are crowdsourced by investors – not by traditional banks. As a result, loans are offered to people in nearly any credit score range, and rates may be lower than you can qualify for elsewhere.
Like other lenders on this list, Lending Club makes it easy to apply online.
After submitting some basic information – including the reason for your loan application – you’ll find out whether you qualify and the type of rate you’ll receive.
Keep in mind, however, that many Lending Club loans come up with an upfront processing fee of 1% – 6% of the loan amount.
Lending Club Summary of Benefits
- Borrow money from investors and not a bank
- Apply online in minutes
- Receive a fixed rate loan with a fixed monthly payment and fixed payoff date
- Borrow up to $40,000
- Get your money in as little as 7 days
- No prepayment penalties and no hidden fees
Prosper is another crowdsourced loan platform that lets you borrow money from investors instead of a bank or traditional lender.
While loan terms can vary, Prosper typically offers loans that last up to 5 years with fixed interest rates and a fixed repayment term.
The fact that Prosper has already loaned out $9 billion dollars to 600,000 people since its founding in 2005 shows it is already a mainstay in this industry.
While traditional banks have plenty to offer in the debt consolidation space, many borrowers turn to Prosper for ease of use, low rates, and simple repayment terms.
Prosper Summary of Benefits
- Answer a few simple questions to access your lowest rate instantly
- Receive your funds via direct deposit within 3-5 business days
- Consolidate all your credit card debt and other high-interest debts in a new loan
- Interest rates vary based on creditworthiness
- Easy online application process
7. National Debt Relief
National Debt Relief is one of the top-rated debt consolidation companies in the country, and their ratings really speak for themselves.
As of this year, the company had achieved top ratings from TopConsumerReviews, TopTenReviews, Consumers Advocate, and Consumer Affairs.
The company is BBB-accredited, and they promise to help you consolidate your high-interest debts into a new loan via their easy online loan application process.
You can also qualify for a free quote online with no obligation to move forward.
National Debt Relief Summary of Benefits
- Get free financial counseling and guidance from debt relief experts
- Secure a new loan with a lower interest rates
- Large loan amounts and flexible repayment terms
- Find a loan that is tailored to your needs
- Improve your credit score with regular, on-time payments
PersonalLoans.com has grown from a smaller player in this field to a dominating force within the debt consolidation industry.
This company connects borrowers with a wide range of debt consolidation loan products with competitive interest rates and fair loan terms, plus the ability to apply online and from the comfort of your own home.
Like LendingTree, PersonalLoans.com doesn’t offer loans itself. Instead, it partners with peer-to-peer lenders to offer a marketplace where you can view and compare multiple loan offers.
Most people who apply find they are eligible for several fixed rate loan offers with repayment timelines of up to 72 months.
Loan amounts range from $1,000 up to $35,000, and an origination fee of 1% – 5% is charged to service the loan.
PersonalLoans.com Summary of Benefits
- Compare loan offers from multiple lenders on one easy-to-use platform
- Apply online
- Borrow between $1,000 and $35,000 with a fixed interest rate
- Borrow from your peers instead of a traditional bank
Avant is yet another debt consolidation lender that promises to simplify your life and save you money with their dynamic debt consolidation products.
Loans are offered with repayment timelines of 24 to 60 months, but you can customize your loan to secure a payment that fits your budget and lifestyle.
Fixed interest rates are offered to new borrowers, and Avant promises no surprises during the loan application or funding process.
A recent survey of Avant customers also showed that 95 percent were satisfied with their loan product and the customer service they received.
You may be charged an administration fee when your loan is funded, although the amount varies.
Avant Summary of Benefits
- Customize your repayment timeline and monthly payment to fit your budget
- Fixed interest rates
- Receive your funds as soon as the next business day
- Pay off high-interest debt with fixed monthly payments
10. Consolidated Credit Counseling Services
Consolidated Credit Counseling Services was recently rated #2 among debt consolidation companies by Consumer Affairs, and for good reason.
This highly-rated company promises to help you escape overwhelming credit card debt by moving you into a new loan with better terms.
According to the firm, working with one of their accredited credit counselors can help you reduce or eliminate credit card interest charges and lower your monthly payments by 30% – 50%.
To get the process started, Consolidated Credit Counseling Services offers a free consultation and debt repayment plan.
The company also has excellent reviews on Trustpilot, with an average rating of 4.8 out of 5.
Consolidated Credit Counseling Services Summary of Benefits
- Lower your monthly payments by 30% – 50%
- Secure a lower average interest rate on all your debts
- Avoid bankruptcy and restore your credit score
- Free consultation and debt quote
11. Freedom Debt Relief
Freedom Debt Relief is a highly-rated debt consolidation firm with accreditation from the AFCC for highest ethical standards.
The company has also received an average of 4.5 out of 5 stars across its 11,000+ reviews on Consumer Affairs.
Not only will you receive free debt counseling, but you can get help with a debt consolidation plan that could slash your interest rates, lower your monthly payments, and help you get out of debt faster.
Freedom Debt Relief Summary of Benefits
- Get a free quote online
- A+ rating with Better Business Bureau (BBB)
- Reduce your monthly debt payments and save money on interest
12. Marcus by Goldman Sachs
Last but not least, Marcus by Goldman Sachs holds a spot on this list thanks to its fixed-rate debt consolidation loans with no fees.
This company lets you borrow up to $40,000 for the purpose of debt consolidation, then repay your loan for anywhere from 36 to 72 months.
Your interest rate will vary depending on your creditworthiness, with the highest loan amounts and lowest rates going to those with good or excellent credit.
Like others on this list, Marcus by Goldman Sachs makes it easy to apply for a debt consolidation loan and get a free quote online.
Marcus by Goldman Sachs Summary of Benefits
- No signup fees, no prepayment fees, and no late fees
- Fixed rate debt consolidation loans with repayment terms of up to 72 months
- Apply online
- 148 years of experience in the lending industry
Links in this and other posts generate a commission. I never recommend products that I don’t truly believe in. Seriously – I get asked to write about stuff all the time and turn down hard cash if I’m not feeling it.
Holly Johnson is a financial expert, award-winning writer, and Indiana mother of two who is obsessed with frugality, budgeting and travel. Her personal finance articles have been published in the U. S. News, Wall Street Journal, Fox Business, and Life Hacker. Holly is founder of of the family finance resource, ClubThrifty.com, and is the co-author of Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love. Learn more about Holly here.