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.

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

You can save by locking in a fixed interest rate with a consolidation loan. There's no collateral required and no origination fees.

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Borrow from $35,000 up to $300,000 

Consolidate debt and get the cash you need with a home equity loan or a mortgage refinance with no cash required at closing and low fixed rates.

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 Refinance federal and private student loans

Choose a fixed or variable interest rate with zero fees. Flexible terms could lower your overall student loan payment amount each month.

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Learn more about Student Loan Consolidation >

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

Eliminate debt faster

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

Consolidate monthly bills

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

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.

Check out these debt consolidation tips and resources

Balance Transfer

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

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 Loan

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. 

See all Home Loan articles
Student Loan

7 Reasons to Consider Student Loan Consolidation

Explore 7 reasons to consolidate student loan debt and understand the benefits of consolidating student loans. Read more

See all Student Loans 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 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.