Debt consolidation replaces multiple debts with a single payment - via a personal loan, balance transfer, HELOC, or refinance. It can simplify payments and lower costs, but secured options put assets at risk. Compare total costs, seek nonprofit counseling, and watch for scams.
Community credit counseling gives practical help - budgeting, education, and debt management plans - usually from non-profit or government-linked agencies. Look for transparent fees, written disclosures, and beware of high-fee debt-settlement scams.
Nonprofit credit counseling agencies can negotiate a debt-management plan (DMP) that consolidates unsecured debts into one monthly payment and may lower interest and fees. Verify nonprofit status, fees, and creditor participation before enrolling.
Consolidation companies and a range of lenders help combine multiple debts into one payment. We explain methods, benefits, risks, and how to choose the right option in 2025.