What is debt consolidation?
Consolidating debt is the process of combining multiple debts from credit cards, high-interest loans, and other bills into one monthly payment. Debt consolidation solutions may lower your interest rate, which can help you save money on interest, lower your monthly payments, and pay down debt faster.
Debt consolidation services from Discover
Whether you want to lower your monthly payment or pay down debt faster, Discover offers a range of debt consolidation programs that fit your financial goals.
Transfer up to your available credit line
Transfer high-interest debt from credit cards, store cards, loans, and more and save with a low promotional APR.
Balance Transfers Learn more about Balance Transfers
Borrow from $35,000 up to $150,000
Using the equity in your home, consolidate or refinance debt with no cash required at closing and low fixed interest rates.
Home Equity Loans Learn more about Home Equity Loans
The benefits of consolidating debt
See examples of how debt consolidation could help you take control of your finances.
May be able to save money on interest
- Possibly lock in a lower interest rate with a consolidation loan
- Get a low promotional APR on your credit card with a balance transfer
Consolidate monthly bills
- Simplify and streamline your finances
- Consolidate your debt and make fewer payments each month
Eliminate debt faster
- Put less money toward interest
- Pay down your principal sooner
Pay off debt over time
- Choose your loan term or balance transfer promotional period
- Create a monthly payment plan that works for you
Here's how it works
Decide which debts to pay off
Consolidate credit cards, store cards, gas cards, medical bills, and more. Separately, you can also consolidate federal and private student loans.
Review your loan or balance transfer offers
Compare debt consolidation programs and apply for the one that's right for you.
Start paying down your debt
We can help you determine a monthly payment you're comfortable with as you pay down debt.
Consolidation loan versus
balance transfer—which is right for you?
Consolidation loan versus balance transfer—which is right for you?
Debt consolidation isn't one size fits all. That's why we offer solutions to help you consolidate your debt in a way that works for you.
With a consolidation loan, you choose the amount you need and the repayment term that works for you. You can borrow up to $35,000 with a Discover Personal Loan or $35,000 up to $150,000 with a Discover Home Equity Loan. With a Discover Student Consolidation Loan, you can combine federal and private student loans into one new loan.
If you’re approved, you can pay off your consolidated debt by making monthly payments according to your loan repayment term.
A balance transfer is a solution offered by your credit card. Using your available credit, a balance transfer lets you pay off other credit cards or loans. Those debts are then consolidated and added to your credit card balance.
When you complete a balance transfer, you get a low promo rate for a set duration. Depending on the offer, you may pay a transfer fee.
Estimate your savings with our debt consolidation calculators
See your balance transfer savings
How much could you save if you transfer balances to Discover?Calculate savings
Estimate your savings with a personal loan
And see how much faster you can pay off your debt.See your savings
Calculate your savings with a home equity loan
See how much a home equity loan can lower your monthly payment.Estimate savings
Check out these debt consolidation tips and resources
A balance transfer can help you save money on interest while you pay down higher interest debt from existing credit cards and loans. Read moreSee all Balance Transfer articles
When it comes to major financial goals, two of the biggest are paying off debt and building an emergency fund. Read moreExplore Personal Loan resources
Using the equity in your home, consolidate your debt and pay a lower interest rate on one monthly payment. Read moreSee all Home Equity articles
Get answers to your questions about consolidating debt
Can debt consolidation help me pay down debt faster?
Debt consolidation may help you lower your monthly payment or under certain circumstances decrease the amount of interest you pay, but this depends on your financial situation and your ability to make your monthly payments.
What kind of debt can I consolidate?
Whether you choose a loan or a balance transfer, you can consolidate credit cards, store cards and gas cards; high-interest loans; medical bills and more. Separately, you can also consolidate your student loan(s) by refinancing federal and private student loans into one loan with one monthly payment.
How do I consolidate credit cards?
You can consolidate your credit card debt two ways. You can transfer your other credit card balances onto one credit card with a balance transfer, or you can get a debt consolidation loan to pay off your balances.
How much can I consolidate with a private consolidation student loan?
Subject to credit approval, you can consolidate up to the aggregate amount of your education loan debt. Maximum limits may apply. The minimum consolidation loan amount is $5,000.
If I consolidate my debt, can you pay my creditors directly?
Yes, in most cases with With a debt consolidation loan, we can send funds directly to your creditors or you can receive a check in the mail to pay them off yourself. With a student consolidation loan, we will send funds directly to your current lenders. A balance transfer can also send funds to most credit card or loan companies.
What kind of interest rates can I get with a balance transfer?
A balance transfer offer has a low promotional or introductory rate. Rates can be as low as 0%, depending on the offers that are available to you.