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.
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.
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
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.See all Home Loan 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.