Debt Consolidation: How It Works and How to Do It

How our program helps:

  • Significantly lower your monthly payment
  • Reduce your debt to a fraction of what you owe
  • Be debt free in as little as 12 to 48 months

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Debt Consolidation: How It Works and How to Do It

Your step-by-step guide to consolidating debt.

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What Is Debt Consolidation?

Are you struggling to manage all of your debt obligations? Would you benefit from combining all of your debts into one monthly payment, potentially reducing the amount you pay in interest and fees? If you are experiencing financial hardship, debt consolidation may be right for you.

Debt consolidation is the process of turning multiple debts into one financial obligation. This is often done by taking on another line of credit, like a credit card or a personal loan, and using those funds to pay off existing debts. Another common consolidation tactic is to enroll two or more debts into a debt resolution program. Consolidation can help streamline your payments, make your finances less overwhelming and is a great bankruptcy alternative.

How Does Debt Consolidation Work?

Consolidation is usually done using one of three methods:

Debt Consolidation Loans

You can quickly pay off multiple debts using the money gained from a new loan, allowing you to focus on one monthly payment instead of multiple bills. This method is better for people with a healthy credit score, as a lower score could lead to a high loan interest rate.

Credit Card Balance Transfers

For as low as a 1-3% fee, you could transfer your debts from existing credit cards to a new card with a low or 0% interest rate. However, these rates are typically introductory and only available for a limited time, so it’s crucial that you have a plan set to pay the card off as quickly as possible.

Debt Resolution Programs

Debt resolution programs allow you to combine multiple debt obligations into a single, reduced monthly payment. These companies connect with creditors on your behalf to reach new terms and agreements, oftentimes allowing you to resolve your debt for less than you originally owed.

Working With a Debt Consolidation Program

If you are looking for ways to get out of debt and have the discipline to stick to your consolidation plan, you could see your debts reduced or eliminated in as little as 12-24 months. Benefits of consolidation include:

Simplified Payments: Merging multiple debts into one reduces the number of payments, due dates and account logins you have to remember. This can also reduce the risk of missing payments and being charged with late fees.

More Manageable Debt: If you’re feeling overwhelmed and losing track of multiple payments, reorganizing your debts through consolidation can help make things less confusing.

An Assigned End Date: Sometimes the best motivation to pay off debt is knowing there’s a light at the end of the tunnel. Most debt consolidation programs create a customized payment plan and a target graduation date, allowing their clients to better see their progress and work their way toward the finish line.

Significant Savings and Lower Monthly Payments: A benefit unique to debt resolution programs and companies is that their specialists will work with creditors directly to reach new terms and agreements, allowing clients to resolve their debts for much less than they originally owed. Less money owed means smaller monthly payments, keeping more money in your pocket.

How To Consolidate Debt With Accredited Debt Relief

We understand how stressful and overwhelming it is to be in debt, which is why our top priorities are to help you resolve your debts as quickly and efficiently as possible. Our team is ready to review your unique financial situation and provide you with the best debt relief solution possible.

You can get started with Accredited Debt Relief by applying online or calling us at 800-497-1965. We’ll then put you in touch with one of our Certified Debt Specialists, who will review your current financial needs and provide you with a specialized debt resolution plan. Our previous clients have been able to overcome their enrolled debts in as little as 12 to 48 months.

With an A+ rating from the BBB and our American Fair Credit Council (AFCC) accreditation, we’re committed to providing our clients with excellent service and serious savings. Learn more about your debt relief and bill consolidation options by contacting Accredited Debt Relief today.

When debt prevents you from accessing your basic needs, it’s time to get help.

Oscar and Courtney had already tried debt consolidation, but it wasn't enough to help fix their finances. Accredited Debt Relief cut their monthly payments by almost half, giving them a brighter financial future.

The Pros and Cons of Debt Consolidation

Depending on finances and credit history, debt consolidation may or may not be your best option. Consider the pros and cons to consolidating:


Simplified Debt Management: One monthly payment is easier to keep track of than multiple creditors, payment amounts and due dates.

Pay Off Debt Faster: If you consolidate your debt, you’re much more likely to pay everything off faster than if you continue to only make your minimum payments.

Fixed, Lower Payments: Clients who consolidate through a debt resolution program often receive a consistent, lower monthly payment. With a predictable deposit schedule set in place, you can create a budget that leaves room for other expenses.


Temptation to Spend: Debt consolidation on its own will not help you develop better budgeting or spending habits.

Doesn’t Always Reduce Your Debt: Some consolidation strategies do not reduce the total amount you owe — you’re simply moving the debt to a new location. If you use a debt resolution company to consolidate your debts, they may be able to reach new agreements with your creditors that allow you to resolve everything for less.

Debt Consolidation FAQ

Debt consolidation involves combining multiple debt obligations into one monthly payment to simplify the repayment process. Consolidation can be done through personal loans, credit card balance transfers and debt resolution programs.

Yes! Although it’s not guaranteed, many people save money and time with debt consolidation. For example, those who consolidate through a debt resolution program often receive a lower monthly payment and reduction in their overall debt.

If you have $7,500 or more in unsecured debts and are ready to commit to a single, reduced monthly deposit, you may be able to consolidate your financial obligations with Accredited Debt Relief’s program. Contact one of our Certified Debt Specialists to learn more.

Your credit score can be impacted if you consolidate your debt. However, your credit score can improve over time if you practice good financial habits, like making consistent monthly payments and reducing your credit utilization.

We recommend working with a top-rated debt relief company that has experience helping their clients reduce their debt. You can verify the trustworthiness of a company by looking for positive reviews from their customers and reviewing their accreditations.

Proven Results From Real Clients

Carl F.

Enrolled Debt: $43,922

Final Debt: $21,403

Savings: $22,879*

Enrolled: 2/10/2020

Graduated: 8/31/2021

Kelli M.

Enrolled Debt: $21,974

Final Debt: $12,797

Savings: $9,176*

Enrolled: 3/22/2020

Graduated: 10/21/2021

Ashley S.

Enrolled Debt: $24,954

Final Debt: $10,634

Savings: $14,320*

Enrolled: 1/1/2020

Graduated: 10/28/2021

* These examples do not include program fees. This is small sample of debt settlements our negotiation team has achieved for our clients. These settlements were obtained for clients who successfully met all of their program terms and received settlement offers. Results may vary, and there are no guarantees that all creditors will agree to settle. These examples are not representative of results in all cases.

Accredited Debt Relief: The Best Way to Pay Off Debt

Accredited Debt Relief has helped customers across the country consolidate and resolve their debts. With an A+ BBB rating, we offer customized financial solutions that can help you pay off your debt obligations quicker. Our experienced team can help lower your monthly payments and reduce what you owe overall. To learn more and receive a free, no obligation consultation, contact us today.

Learn More About Debt Consolidation

Debt Relief: Settlement vs. Debt Consolidation Loans

You can accomplish this through a debt consolidation loan or customized debt settlement program offered by Accredited Debt Relief, but which one is the most effective?

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5 Mistakes to Avoid When Consolidating Credit Card Debt

Consolidating your credit card debt can help simplify your monthly payments and fast track you to paying off your debt. Unfortunately, there are a few things that can derail your progress.

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What Is a Debt Consolidation Loan?

Debt consolidation is a common method of refinancing that involves paying off high-interest debt with a new lower-interest loan.

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