What is debt consolidation?

Debt consolidation is a good way to get on top of your payments and bills when you know your financial situation:

  • It combines all of your debts into one payment.
  • It could lower the interest rates you’re paying on each individual loan and help you pay off your debts faster.
  • Paying off debts on time or faster can improve your credit score.

Find out more about debt consolidation.

Is debt consolidation right for you?

Consider it for:

One payment a month at a fixed rate for fixed rate loans

Consolidate debts from other loans and credit cards into one payment.

Lower interest rates

Save on interest depending on the loan or line of credit that you may qualify for.

Faster debt payoff

Pay off debt sooner when you refinance and consolidate.

Improved credit

Build or repair your credit by making timely payments and faster payoffs.

May not be right for you if:

Debt to income is too high

If your debt load is more than half your income or the amount you owe is overwhelming, it might be a better idea to explore debt relief options.

Debt due to spending habits

Use budgeting tools to help develop better spending habits before you consider debt consolidation.

Current payments and rates

If your current debt monthly payments and rates are better than a debt consolidation, you’re better off staying put.

Not sure how much you can save?

Use our debt consolidation calculator to see how you might save on monthly payments, interest or pay off debt faster. Just answer a few quick questions and we’ll give you a personalized estimate.

What are your debt consolidation options?

Debt consolidation starts by looking at your financial picture using our rate tools. Then, consider a loan or line of credit. You can use the money to pay off your debts more quickly.

Personal loan

One-time funding to cover your debts and you’ll pay the same amount every month.

Check your rate before completing a full application to see what you may be eligible to borrow. It won’t affect your credit score.

Personal line of credit

Enjoy a little more flexibility to access funds when you need them.

Before you apply you can check your rate and see what you may be eligible to borrow. It won’t affect your credit score.

Home equity loan

Discover fixed rates and payments to help work toward debt consolidation.

Home equity line of credit

Another way to use funds when you need them and only pay interest on what you borrow.

Want to talk to someone about loans for debt consolidation?

We have lending consultants who can help. Learn about your loan options, and get personalized estimates for your needs. Give us your details and we’ll give you a call.

Explore featured articles to help you be debt free or find relief.

How you can pay off credit card debt.

Get tips and tools to help you create a debt repayment plan.

Know your debt-to-income (DTI) ratio.

Understand your credit worthiness and your “Capacity: ability to repay.”

Good debt vs. bad debt: what’s the difference?

Ask yourself these questions to determine whether taking on debt is right for your financial situation.

How you can improve your credit score.

Explore six simple ways to build and maintain good credit.

How you can build and maintain a solid credit history and score.

Get started with these five easy steps.

What’s a good credit score?

Know your score range before applying for loans and lines of credit.

Get answers to common questions about debt consolidation.

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  1. Free credit score access, alerts and Score Simulator through TransUnion's CreditView Dashboard are available to U.S. Bank online and mobile banking customers only. Alerts require a TransUnion database match. It is possible that some enrolled members may not qualify for the alert functionality. The free VantageScore® credit score from TransUnion® is for educational purposes only and not used by U.S. Bank to make credit decisions.

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Not all loan programs are available in all states for all loan amounts.

Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.