What is Debt Consolidation

Debt Consolidation can help you become debt-free

Turn lots of debt into a single, monthly payment. And take control of your financial future.

What is a debt consolidation loan?

A debt consolidation loan helps you combine multiple debts into a single debt. You’ll replace numerous payments with one monthly payment – at a fixed APR that is lower than your high-interest credit card debt. With a fixed rate consolidation loan that LendingMarket helps you obtain, you’ll know exactly how much you owe each month and when your loan will be paid off.

Debt consolidation won’t make you debt-free overnight. It will, however, make your debts easier to manage – both for your monthly budget and your long-term planning. When you combine debt consolidation with monthly budgeting, you can really take control of your financial future.

How does a loan help you get out of debt?

A debt consolidation loan doesn’t eliminate your debt. It simply merges your individual debts into one, at a lower APR. The goal is to make your debt easier to manage, lower your total interest payments and save you money.

Getting out of debt is a multi-step process that could include making changes to how you spend and save. If you’re not sure how you accumulated so much debt in the first place, consolidating won’t do anything to change your spending behavior. It also won’t stop you from accumulating more debt in the future. Debt consolidation can, however, be a step in the right direction.

What happens after you consolidate your debt with a debt consolidation loan?

Once you’re qualified and approved for a loan, you’ll receive the funds in a lump sum. You can use it to pay off your high-interest credit cards, medical bills, or other debts. Then, you’ll only have to think about one monthly payment at a time rather than several.