What is debt consolidation / payoff loan?
Debt consolidation means combining multiple debts into one new loan, typically with a lower interest rate or a more manageable monthly payment. Instead of juggling several balances and due dates, you make one payment each month toward your new consolidated loan.
How does debt consolidation work in the Relief app?
Relief helps you find eligible consolidation loan options based on your financial profile. Once you connect your accounts, we show you what you qualify for—no paperwork, no guesswork. If a loan looks right for you, you can apply directly through the app with our partner.
What types of debt can be consolidated?
Most unsecured debts can be consolidated, including:
Credit cards
Personal loans
Medical bills
Payday loans
Secured debts, like mortgages or auto loans, typically aren’t eligible.
Who is a good fit for consolidation?
Consolidation can be helpful if:
You have multiple debts with high interest rates
Your monthly payments feel overwhelming
You want to simplify your repayment into one fixed payment
You qualify for a lower interest rate than you’re currently paying
Will consolidating debt hurt my credit?
Your credit may dip slightly when you apply for a new loan (due to a hard credit check), but if you make payments on time and avoid racking up new debt, consolidation can improve your credit over time by reducing your credit utilization and simplifying your repayment.
Can I consolidate debt with bad credit?
To qualify for a consolidation loan through Relief, you’ll need a credit score of at least 660. If your score is below that, you won’t be eligible for a loan through our platform right now—but there are other ways to manage or reduce your debt, including Relief’s reduction request tool for delinquent accounts.
What’s the difference between consolidation and settlement?
Consolidation: You pay back what you owe, ideally at a lower interest rate.
Settlement: You negotiate to pay less than what you owe, typically for delinquent debt.
Relief offers both solutions depending on your situation.
Are there fees to use this tool?
Relief doesn’t charge you to explore your options. If you choose to move forward with a loan, the lender may charge origination fees or other standard loan costs, which will be clearly disclosed before you accept anything.