The Best Debt Consolidation Companies (2023)

On February 25, 2026 By newsroom Topic: Debt Advice

What is Debt Consolidation?

Combines multiple debts into one loan with a single monthly payment.
Often aims to lower interest rates and streamline payments, though it may extend repayment terms.

Top Debt Consolidation Companies

Upgrade
Loan Amounts: $1,000 - $50,000.
APR: 8.49% - 35.99%; origination fee up to 9.99%.
Features: Available for all credit scores, flexible terms, co-signers allowed.
Marcus by Goldman Sachs
Loan Amounts: $3,500 - $40,000.
APR: 6.99% - 24.99%; no fees.
Features: Direct creditor payments, flexible terms, fee-free loans.
Achieve Personal Loans
Loan Amounts: $5,000 - $50,000.
APR: 7.99% - 35.99%; origination fee 1.99% - 4.99%.
Features: Same-day approval, co-signers allowed, high loan limits.
SoFi
Loan Amounts: $5,000 - $100,000.
APR: 7.99% - 23.43%; no fees.
Features: Direct Pay offers 0.25% APR discount, unemployment protection, no prepayment penalty.
LendingClub
Loan Amounts: $1,000 - $40,000.
APR: 7.04% - 35.89%; origination fees 3% - 8%.
Features: Flexible terms, quick funding, supports fair-to-good credit.
OneMain Financial
Loan Amounts: $1,500 - $20,000.
APR: 18% - 35.99%; origination fees vary by state.
Features: In-person service, flexible terms, accepts co-signers.

Pros and Cons of Debt Consolidation Loans

Pros
- Simplifies finances with one monthly payment.
- Fixed repayment schedules.
- May offer lower interest rates or faster debt repayment.

Cons
- Monthly payments can be high.
- May have fees (e.g., origination fees).
- Extended repayment terms may increase overall costs.

How to Get a Debt Consolidation Loan

Check Rates: Prequalify online without affecting your credit score.
Apply: Provide details like income, Social Security number, and address.
Receive Funds: Approval can take as little as one day; some lenders pay creditors directly.
Pay Off Debts: Use loan funds to clear existing debts.

Alternatives to Debt Consolidation Loans

Home Equity Loans/HELOCs
Leverage home equity for low-interest borrowing.
Balance Transfer Credit Cards
0% APR offers for up to 21 months; fees apply.
Credit Counseling
Nonprofits help create debt repayment plans.
Debt Settlement
Negotiate to pay less than owed but may harm credit.

Key Considerations When Choosing a Lender

Fees: Prefer lenders with low or no fees.
APR: Look for rates under 36%.
Loan Terms: Choose flexible repayment options.
Funding Speed: Prioritize lenders offering quick disbursements.
Co-Signer Options: Beneficial for borrowers with low credit.
Creditor Payments: Direct payment to creditors avoids delays.

Customer Feedback Highlights

Upgrade: Customers praise the smooth process and helpful service, though origination fees are high.
Marcus: Reviews emphasize no fees and credit improvement, but complaints note slow payment posting.
Achieve: Praised for fast approvals; origination fees are a drawback.
SoFi: Noted for reasonable rates and excellent customer experience, but some report bait-and-switch rate offers.
LendingClub: Easy process with flexible terms, though high origination fees can be a concern.
OneMain: Customers value in-person service, but rates and fees are higher than competitors.

Pro Tip: Compare fees, APR, and terms across lenders to ensure the loan meets your financial needs. Use a co-signer if needed to improve approval chances and secure better rates.