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Best Debt Consolidation Loans for 2025
Debt consolidation loans combine multiple debts into a single loan, ideally at a lower interest rate — several lenders offer competitive options for borrowers with good to fair credit.
Top Options
| Lender | APR Range | Notable Feature |
|---|---|---|
| LightStream | 7.49%–25.49% | No fees, rate beat program |
| SoFi | 8.99%–29.99% | No fees, member benefits |
What to Look For
Compare APR (not just interest rate), origination fees, and funding speed — the genuinely lowest-cost option factors in all of these, not just the headline rate.
Calculate Your Break-Even Point
Compare your current weighted average interest rate across existing debts against the new consolidated rate, factoring in any fees, to confirm genuine savings before proceeding.
Common Mistakes
Consolidating debt without addressing the spending habits that led to the debt, risking accumulating new balances on freed-up credit cards.
Frequently Asked Questions
Requirements vary by lender — some options work with scores as low as 580, though the best rates typically require good to excellent credit (670+).
No — consolidation combines debts into one new loan at (ideally) a better rate, while settlement negotiates to pay less than owed, often damaging credit significantly. These are very different approaches.