What Is a Debt Consolidation Loan?
A debt consolidation loan is a personal installment loan used to pay off multiple existing debts — credit cards, medical bills, store financing, and other unsecured balances — leaving you with one fixed monthly payment instead of many.
If your credit is damaged, you may still qualify through lenders who focus on current income and ability to repay, not just your score from years past.
Why Consolidate With Bad Credit?
High-interest revolving debt compounds quickly. Moving balances to a fixed-rate installment loan can:
- Replace variable minimum payments with one predictable amount
- Lower your average APR if you qualify for a better rate
- Set a clear payoff date instead of revolving indefinitely
- Simplify budgeting with a single due date
How Much Can You Consolidate?
Through 50kLoans, you can request up to $50,000 for consolidation. The amount you are approved for depends on total eligible debt, income, DTI, and lender policies. You do not need to consolidate the full $50K — many borrowers consolidate $5,000 to $25,000.
Steps to Consolidate Debt With Bad Credit
- Add up balances, APRs, and monthly payments on all debts you want to combine.
- Request your consolidation amount using the form above.
- Compare lender offers — focus on APR, term, and total repayment cost.
- Accept the best offer and use funds to pay off existing accounts.
- Make on-time payments on your new single loan going forward.
Rates & Savings: What to Expect
APR for bad credit consolidation loans typically falls between 15.99% and 35.99%. Consolidation only saves money if your new APR is lower than the weighted average on the debts you are paying off. Always compare total interest paid over the full term.
Debts You Can Typically Consolidate
- Credit card balances
- Store and retail financing
- Medical and dental bills
- Personal loans and lines of credit
- Collection accounts (varies by lender)