Debt consolidation loans help you pay off multiple debts by combining them into one monthly payment (typically at a lower interest rate).

Get your crash-course education in debt consolidation here.

Debt consolidation loans can generally be used to consolidate different types of unsecured debts, including credit card balances, personal loans, medical bills, and more.

The amount you could qualify for depends on your creditworthiness, but Best Egg Debt Consolidation Loans allow you to consolidate $2,000-$50,000 of debt.

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Using a personal loan for debt consolidation can make managing your finances much easier. For example, instead of making multiple payments to different lenders each month, you only have to make one toward your debt consolidation loan. The repayment terms are typically fixed, which means your payment always stays the same—providing a clear timeline for when you’ll be debt-free.

In addition, debt consolidation loans often offer lower rates than credit cards, which could help you save money when repaying high-interest credit card debt. Click here to find out if you should use a personal loan or credit card for debt consolidation.

Beyond the qualification requirements to be approved, the biggest risk associated with debt consolidation loans is extending the repayment period to where it no longer helps you save.

Extending your loan term makes monthly payments cheaper, but the result is that you may end up
paying more interest over time. It’s essential to compare offers and carefully review the terms of any financial product you’re applying for to make sure consolidating your debt is worthwhile.

Learn if debt consolidation is a good idea for you here.

Consolidating your debt can impact your score both positively and negatively. When you accept a debt consolidation loan offer, a hard inquiry will be placed on your credit report, which could temporarily lower your credit score. If you close a card or loan account after consolidating the debt, this could also lower your credit score due to reducing the average age of your accounts.

On the positive side, paying off multiple debts can lower your credit utilization ratio, benefitting your credit score. And by demonstrating responsible behavior and repaying your loan on time, your history of consistent payments could boost your credit score as well. When managed effectively, debt consolidation typically has a positive impact on your score over time.

The only fee you have to pay with a Best Egg Debt Consolidation Loan is the one-time origination fee that’s included in the principal loan amount.

There’s also a $15 returned payment fee if your payment doesn’t process (usually due to returned checks or insufficient funds in the bank account).

Applying for a Best Egg Debt Consolidation Loan online only takes a few minutes, and you’ll find out if you’re approved for an offer instantly. If you’re approved, money should be in your account within 1-3 business days.