How to Choose a Debt Consolidation Company

Which scenario is most like your situation?

Scenario 1: You look at a stack of bills and loans and wish the stack was a lot smaller? You make payment after payment each month and the bills just keep coming.

Or …

Scenario 2: You look at one bill that has all of your debt combined and write one check or make one online payment—and you’re done paying down your debt for the month.

Which is better?

For many people, having only one bill to pay is easier to manage than paying multiple bills for the same amount of debt. If you’re living with Scenario 1, or something similar, you could be a candidate for debt consolidation.

Debt consolidation can help you pay down multiple outstanding loans by combining them into a single balance. If you’re looking to consolidate your debt, many companies offer debt consolidation loans or credit card balance transfers. Though choosing from the best debt consolidation companies for the job can be a process all itself.

Since you shouldn’t trust just anyone with your financial future, choosing the right debt consolidation company is an important decision. Let’s take a look at some factors to consider before you make your final choice.

Debt consolidation vs. debt settlement: Understanding the difference

Some companies may claim they can help you with debt consolidation, when they’re really offering debt settlement. The two terms may sound similar, but the key difference is in how your debt is paid off.

Debt consolidation is the process of getting a loan that pays down all your outstanding debts and replaces them with a single balance you’ll pay down over time. It can be a helpful financial tool for paying off credit card debt quickly, for example.

Debt settlement involves having a portion of your debt forgiven or canceled, usually by working through a company that negotiates directly with your lenders or creditors. Working with a debt settlement company can be costly for several reasons:

Debt settlement companies can charge 15-20% of your total debt in service fees.
Settlement companies typically ask you to stop making payments during the negotiating period, which can cause late fees and interest to accrue if your creditors refuse the settlement.
Missing payments during the negotiations can hurt your credit score or lead to a default if the settlement doesn’t go through.
Debt that’s canceled can be counted as income for tax purposes, which can cost you at tax time.

There are risks associated with debt consolidation as well, so consider carefully which process would work best for you.

Is the company trustworthy?

The most important factor in choosing a debt consolidation company is whether you can trust them with your personal information. Applying for a debt consolidation loan requires you to submit your Social Security number, account numbers, and other personal details. A trustworthy company should have certain security measures in place to protect their customers’ finances.

Here are a few ways you can tell if a company is safe to work with:

Search for the company on the Better Business Bureau website—where you can read reviews and complaints—and see if the company has been involved in any legal disputes.
Is the company registered with the Financial Counseling Association of America or the National Foundation of Credit Counseling? If not, then it probably isn’t the most reputable business to work with.
Check that the company has security measures like computer safeguards and secured file.
Request to see a certificate of proof if a company claims to be a nonprofit. A reputable company should be able to show you this document.
Avoid businesses that ask for an immediate signing, or promise a fast and easy solution to your debt problems.

Do they offer what you need?

Common debt consolidation offerings can include personal loans and balance transfers. Before signing with anyone, be sure what they’re offering is a good fit for your needs. The right debt consolidation company can offer you the following:

The loan amount you need

The best debt consolidation loans are large enough to pay off all of your debts, so make sure a company can offer the amount you need.

Good interest rates

A perk of debt consolidation is the possibility of getting an interest rate on your new loan that’s lower than the current rate on your other debts. But watch out—if the company charges the same or higher rate than you had before, it could end up costing you more per month.

Agreeable loan terms

The terms of your loan can make a difference in how manageable your repayment process is. Make sure the monthly payments, repayment period, and other details are to your liking.

Affordable fees and costs

Debt consolidation companies can charge loan origination or balance transfer fees and closing costs. Some of these fees may be unavoidable, so make sure you’re not spending more than you’d save.

Do you qualify to get what you need with them?

Your credit score can play an important part in whether you qualify for debt consolidation. Having fair to good credit can qualify you for favorable rates and terms, while having poor credit can make it harder for you to qualify at all or get decent rates and terms. Take a look at your credit score and compare it to a company’s credit requirements to see if you qualify for what you need.

What flexible funding options do they offer, if any?

Life can be unpredictable, and your situation could change at any time. Some debt consolidation companies anticipate this by offering flexible funding options like adjustable loan terms and customizable repayment options. Ask any companies you’re considering about their flexible funding offerings.

Do they offer accessible help?

The top debt consolidation companies will have an easily accessible help center or customer service representatives. Look for businesses that offer these services:

Multiple methods of contact, such as a phone number, email address, live chat options, or a submittable contact form on their website.
Reasonable hours of operation when customers can contact the customer service team.

It can also be a good idea to look up customer service reviews from third-party websites to see what people have said about their experiences.

Do they offer tools beyond debt consolidation to help you with your finances?

Another sign of a great company can be additional services they offer. Reputable companies may have websites that feature educational content or a blog offering tips and tricks for managing and improving your finances. Having a mobile smartphone app is also a plus, so you can manage your finances on the go.

The bottom line

Debt consolidation can be your ticket to paying off all of your debt, if you can find the right company to work with. Get started by checking out Upstart’s options.

Upstart Network, Inc. (NMLS #936133) is not a lender. All loans on its marketplace are made by regulated financial institutions.

All mortgage lending is conducted by Upstart Mortgage, LLC dba Upstart Home Lending. (NMLS #2443873). Equal Housing Opportunity.

Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model considers education: Neither Upstart nor its lending partners have a minimum educational attainment requirement in order to be eligible for a loan.
41% more approvals and 33% lower rates than a traditional model: As of publication in April 2026, and based on a comparison between the Upstart model and a hypothetical traditional model using Upstart data from Jan – Dec 2025. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
Unsecured Loans: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Loan amounts from $1,000 -$75,000: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($1,500), MA ($7,000). Maximum loan amounts may vary by state.
Closing and funding timeline: In April 2026, 10% of funded HELOCs achieved a closing timeline of 2 days or less and a funding timeline of 7 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2025 Home Lending Study reports an average industry closing time of 37 days.
APRs from 6.2% – 35.99%, with 3 or 5 year terms: The full range of available rates varies by state. The lowest rates are only available to the most qualified applicants. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 17.50% and a 7.25% origination fee of $725, for an APR of 21.23%. In this example, the borrower will receive $9275 and will make 60 monthly payments of $252. APR is calculated based on 5-year rates offered in March 2026. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Instant deposits: To receive instant funding, your bank account must support instant transfers. If your account does not support instant transfers, funds will be available to you depending on your bank’s transaction processing time and policies.
Always On Commitment: We are committed to maintaining your credit limit as long as you continue to meet program eligibility and account requirements. To ensure the safety and security of all our members, we reserve the right to adjust or close lines in specific circumstances, including account default or late payments, suspected fraud, violation of our terms of service (including abusive behavior), or when necessitated by legal or regulatory requirements.
Cash Line draws: You may request a draw at any time. Only one draw may be outstanding at a time; after it is fully repaid, you may request another.
HELOC APRs as low as 6.52%: Terms shown here are subject to change without notice. APRs for initial advances range from 6.52% to 18.00% based on rates offered as of April 2026. The lowest rate is only available to consumers willing to become a member of a credit union and to those who meet a minimum FICO score of 780, CLTV under 70%, and DTI under 45%. Your actual rate will depend on many factors such as your credit history, combined loan-to-value ratio (CLTV), line amount, loan term, lien position, and property state. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
No annual fee, prepayment penalty, or fees to redraw: Terms shown here are subject to change without notice. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
2,500+ Variables:As of 3/31/2026. “Variables,” often also referred to as “features,” refers to raw variables and combined variables considered in our AI models. A “raw” variable is a non-combined, conceptually distinct unit of data, such as “applicant-reported savings.” A “combined” variable is data that has been transformed, combined, or otherwise engineered from a raw variable or set of raw variables, such as “applicant-reported savings” divided by “loan amount.
Fully automated loans: In Q2 2026. Percentage of Loans Fully Automated, which is defined as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans, and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period.