Gino Rodriguez, Writer
@gino_rodriguez
Fees for debt consolidation are around 4% with a debt consolidation loan and 2.55% with a balance transfer credit card, on average. The fees you need to watch out for when consolidating debt are origination fees on loans and balance transfer fees on credit cards.
Fortunately, there are personal loan options with no origination fee and balance transfer offers with no transfer fee. Balance transfer credit cards could also have annual fees, late-payment fees and foreign transaction fees, among others. These types of fees are easily avoidable, though.
Fees for Popular Debt Consolidation Loans
| Lender | Origination Fee | APR Range | Loan Amounts |
| $0 | 7.99% - 25.99% | $5,000 - $100,000 | |
| 0% | 6.99% - 24.99% | $3,500 - $40,000 | |
| $0 | 6.99% - 24.99% | $2,500 - $40,000 | |
| No Fees Required | 8.99% - 25.81% | $5,000 - $100,000 | |
| 1.85% - 9.99% | 8.49% - 35.99% | $1,000 - $50,000 | |
| 0% - 5% | 11.25% - 24.5% | $5,000 - $40,000 | |
| 0.99% - 8.99% | 8.99% - 35.99% | $2,000 - $50,000 | |
| 0% - 8% (varies by state) | 7.99% - 35.99% | $2,000 - $36,500 |
Debt consolidation is good for people who find it difficult to manage multiple balances with high APRs. Another option for consolidating debt is through a debt consolidation company. With a debt consolidation company, you make a single payment every month, and they’ll distribute your payment to your creditors. The benefit of using a debt consolidation company is that they often negotiate with your creditors for lower rates and payments. The cost can be a couple of additional fees, including a set-up fee and monthly fees.
Be wary of debt settlement companies marketing themselves as debt consolidation companies, however. They have fees ranging from 15%-25% and can significantly damage your credit score.
For more information, check out WalletHub’s complete picks for the best debt consolidation loans and best balance transfer cards. You can then pre-qualify with multiple lenders at once by using our free pre-qualification tool.
Best Debt Consolidation Loans of 2023
Compare OffersPeople also ask
What is the average fee for debt consolidation?
The average fee for debt consolidation is about 4% if you choose to get a debt consolidation loan and 2.55% if you get a balance transfer credit card. You will need to take these fees into account, along with the APR on your new loan or credit card, when deciding whether debt consolidation is worth it.
The average APR for a debt consolidation loan is 14.47%. The average introductory APR for a balance transfer credit card is 0% for...
read full answerWhat are the cons of debt consolidation?
The disadvantages of debt consolidation are that it's hard to get a worthwhile rate with below-average credit, not all debts are eligible, and there is a possibility of fees. There is also the danger of debt settlement services posing as debt consolidation, which can lead to significant credit-score damage.
The pros of debt consolidation outweigh the cons, but it's important to consider both sides when you're thinking about consolidating.
5 Drawbacks of Debt Consolidation
-
...
What credit score do I need for a debt consolidation loan?
You need a minimum credit score between 580 and 680 to get a debt consolidation loan that offers reasonable rates, in most cases. The higher your credit score is, the lower your APR is likely to be - and the main purpose of a debt consolidation loan is to get a lower APR for your debt. If you also want to get a debt consolidation loan that does not charge an origination fee, so you...
read full answerDid we answer your question?