Best Debt Consolidation
Loans for Bad Credit

Debt Consolidation for People With Bad Credit

Debt consolidation combines multiple debts—like credit cards, payday loans, or medical bills—into one more manageable monthly payment. Instead of juggling several creditors, you make a single payment each month. This can help simplify your finances and reduce stress.

Even if your credit score is less than perfect, there are options. Some lenders and programs specialize in helping people with bad credit consolidate their debt, often through personal loans, debt relief programs, or balance transfer offers (if you qualify).

While it may be more difficult to get approved for a traditional consolidation loan, many programs do not require excellent credit. And even if you do qualify for a loan with a higher interest rate, it may still be worth it to move your debt into one place and stop falling behind on payments.

Example: Let’s say you owe $30,000 across several credit cards. A debt relief program could help you negotiate lower payments, reduce interest, or even settle the debt for less than what you owe—without needing a perfect credit score.

What to consider when choosing a service?

The choice the borrower faces between using a professional debt consolidation service or going straight to a lender for a personal loan to pay off debts is solely dependent on the borrower’s credit status and whether they require help getting and staying out of debt.

A trustworthy debt consolidation service will not ask for money outright to begin the process of helping a borrower learn about their options. Search for a company that works with certified debt specialists to aid their customers in understanding all their options for getting rid of debt.

It’s critical to look at online reviews from current and even past customers to discern which specific debt consolidation company is fitting. This guides borrowers to assess the authenticity of the company.

Supported debt consolidation services for bad credit relief

We only list providers who work with people facing real financial difficulties. Many of the companies in our chart offer:

• No credit score minimums

• Programs to settle debts for less than you owe

• Help with accounts in collections

• Guidance on rebuilding credit

Each service includes a free phone consultation, where you’ll receive a detailed debt evaluation. If you’re a good fit, the company will outline your options—without pressuring you or asking for money upfront.

These companies may offer debt consolidation, credit counseling, and even bankruptcy education if needed. Most also offer custom debt plans that consider your income, expenses, and current credit score.

What is an “APR”?

Annual Percentage Rate (“APR”) is the yearly cost of borrowing from a financial institution, represented as a percentage. The APR includes fees related to originating the loan, not just the interest payments (such late fees, closing fees and administrative fees). Repayment examples (for illustrative purposes only): a $20,000 loan at 6.00% APR with a term of 5 years would result in 60 monthly payments of $387 (Total repayable: $23,199) and a $100,000 loan at 3.00% APR with a term of 4 years would result in 48 monthly payments of $2,213 (Total repayable: $106,245).