Ultimate Guide 9 min read Updated 2026-02-01

Debt Consolidation Guide 2026

Consolidate debt the right way. Options, pros/cons, and when it makes sense.

Consolidation Options

MethodRateBest For
Balance transfer0% introGood credit, <$10k
Personal loan8-20%Fixed payments
Home equity7-9%Homeowners, large debt
401k loan~6%Last resort only

When It Makes Sense

Good idea if:
  • Lower rate than current debt
  • Can afford payments
  • Won't rack up new debt
  • Saves significant money
Bad idea if:
  • Extends payoff significantly
  • Puts home at risk
  • Doesn't address spending

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