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.

Balance Transfer

Balance Transfer

Transfer up to your available credit line

Transfer high-interest debt from credit cards, store cards, student loans, and more and save with a low promotional APR.

Learn more about
Balance Transfers
Learn more about Balance Transfers
Personal Loan

Personal Loan

Borrow from $2,500 up to $35,000

Lock in a fixed interest rate with a consolidation loan. There's no collateral required and no origination fees.

Learn more about
Personal Loans
Learn more about Personal Loans
Home Equity Loan

Home Equity Loan

Borrow from $35,000 up to $150,000

Using the equity in your home, consolidate or refinance debt with no closing costs and low fixed interest rates.

Learn more about
Home Equity Loans
Learn more about Home Equity Loans

The benefits of consolidating debt

See how debt consolidation can help you take control of your finances.

  • Save Money Icon

    Save money on interest

    • Lock in a lower interest rate with a consolidation loan
    • Get a low promotional APR with a balance transfer
  • Consolidate Monthly Bills icon

    Consolidate monthly bills

    • Simplify and streamline your finances
    • Consolidate your debt and make fewer payments each month
  • Eliminate Debt icon

    Eliminate debt faster

    • Put less money toward interest
    • Pay down your principal sooner
  • Timer icon

    Pay off debt over time

    • Choose your loan term or balance transfer promotional period
    • Create a pay down schedule with monthly payments that work for you

Here's how it works

Decide which debts to consolidate
01

Decide which debts to pay off

You can consolidate credit cards, store cards, gas cards, medical bills, and more.

Compare debt consolidation programs
02

Review your loan or balance transfer offers

Compare debt consolidation programs and apply for the one that's right for you.

Debt consolidation monthly payments
03

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.

Consolidation Loans

With a personal or home equity 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.

If you’re approved, you can pay off your consolidated debt by making monthly payments to the bank according to your loan repayment term.

Balance Transfers

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 after paying a transfer fee. Credit cards like Discover it offer low promo rates to help you pay off your debt while you save on interest.

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

Balance Transfer
Understanding Credit Card Balance Transfers

Understanding Credit Card Balance Transfers

A balance transfer can help you save money on interest while you pay down higher interest debt from existing credit cards and loans. Read more

See all Balance Transfer articles
Personal Loan
How to Pay Off Debt and Build an Emergency Fund-at the Same Time

How to Pay Off Debt and Build an Emergency Fund-at the Same Time

When it comes to major financial goals, two of the biggest are paying off debt and building an emergency fund. Read more

Explore Personal Loan resources
Home Equity
How Much Home Equity Do You Need to Consolidate Your Debt?

How Much Home Equity Do You Need to Consolidate Your Debt?

Using the equity in your home, consolidate your debt and pay a lower interest rate on one monthly payment. Read more

See all Home Equity articles

Get answers to your questions about consolidating debt

Can debt consolidation help me become debt free?

Debt consolidation may help you lower your monthly payment or significantly decrease your debt, 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 debt from credit cards, including store cards and gas cards; high-interest loans; medical bills; and more.

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.

If I consolidate my debt, can you pay my creditors directly?

In most cases, yes. 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. 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.