Domestic guarantee financing or lines of credit A debt consolidation reduction loan will pay out-of your own playing cards at once, rearranging your bank account to pay off the loan on a diminished interest rate over a longer time period. To help you qualify, you will likely you need a powerful credit score to make straight down interest cost than just your current bank card APRs. Yet not, particular debt consolidating money possess monthly installments that will be higher than simply your existing credit card debt: thus be certain that you really can afford the new monthly installments prior to you going.