Unsecured debt consolidation loans
An unsecured loan needs nothing as collateral, so your house and car stay out of it. Here is how it compares with secured and home equity options on rate and risk.
An unsecured debt consolidation loan pledges no property, and banks averaged 11.9% on 24-month personal loans in August 2026 (Federal Reserve). The first thing to do is call a specialist. Here are the options they walk you through.
The 16 lenders we reviewed lend from $1,000 to $100,000, so one loan can cover a card balance anywhere in that range. A home equity line averaged 7.61% at credit unions, but missed payments on it could lead to foreclosure.
What an unsecured debt consolidation loan means
With this kind of borrowing, you pledge no property to back what you owe. That does not make missed payments harmless. A creditor may sue you.
What happens after a court judgment depends on state law and what your state protects.
On $18,000 over four years at 11.9%, the payment comes to $473 a month (Federal Reserve). Your budget needs room for $473 every month for four years.
Call and the specialist checks a payment that size against your budget before you borrow.
Rates and limits
The 16 lenders we reviewed charge from 5.96% to 35.99%. They lend from $1,000 to $100,000.
NCUA data from Q2 2025 shows how much less secured loans cost (NCUA). A 36-month unsecured loan averaged 10.74% at credit unions.
A home equity line of credit at 80% loan-to-value averaged 7.61%. That means your home loans total up to 80% of what your house is worth.
So the lower rate comes from putting your house behind the loan. Before you accept any offer, call and we compare it with credit union rates and your cards.
Secured and home equity options
A HELOC lets you borrow against your house for a set period, often 10 years. HELOC stands for home equity line of credit.
After that period, you repay over 10 or 20 years. Those payments are often much higher (CFPB). Most lines carry a variable rate, which means the rate can change.
In Q2 2025, an 80% line averaged 7.61% at credit unions and 8.05% at banks. A five-year fixed home equity loan averaged 6.78% at credit unions and 7.39% at banks (NCUA).
The price of that lower rate is your house. Miss payments on an unsecured loan, and your credit suffers. Miss payments on a home equity line, and you could face foreclosure.
On $18,000 over four years, 7.61% would save about $1,775 compared with 11.9%. The specialist helps you weigh that saving against the risk to your house.
Which to choose
Pick unsecured for card debt under about $50,000 when your score gets a rate below your cards. Pick home equity only when the balance is large and the rate gap is wide.
You also need to be certain you can make the payment for the whole repayment period. Never use a car title loan for card debt.
Call and the specialist walks you through both routes with your own balances.
Related topics
Before you borrow
Can I get an unsecured personal loan to consolidate my debt?
Yes. Every lender we review offers this kind of loan. Approval depends on your score, your income and your debt-to-income ratio, and rates run from about 6% to 36%.
Is a HELOC a good option for debt consolidation?
It is the lowest rate most homeowners can get. It is also the riskiest choice, because your house backs your card debt and the rate is usually variable. It fits large balances and steady income, and nothing else.
Do secured loans hurt your credit?
No more than unsecured loans do. The credit check and the new account cause the same small dip. If you stop paying, a secured lender takes the property you pledged.
Can I get a secured loan for debt consolidation?
Yes. You can borrow against a home, a car or a savings account. Some credit unions offer share-secured loans against your own savings at very low rates, which help people rebuilding credit.
Get one lower payment today
Your card balances sit on several cards, and you can borrow with or without your house behind the loan. Banks averaged 11.9% on 24-month personal loans, while a 7.61% home equity line puts your house at risk of foreclosure. Call now and a specialist goes through your cards for free and compares both choices with you.