How do I put all of my debt into one payment?

CBS News

09-05-2025

Rolling multiple debts into one can have big benefits for your finances, and there are multiple ways to achieve that.It's easy to feel you're juggling too many monthly bills right now, especially if you've successfully managed your obligations in the past and are now struggling to keep up with the payments. And, while your spending habits may have something to do with it, that's likely not the only issue at play. Between today's elevated interest rates, inflation-driven living costs and the other economic challenges that are looming, a lot of people are finding it difficult to fit their debt obligations into their budgets now. The more accounts you have open, after all, the more interest you're paying, the harder it becomes to stay organized and the easier it is to fall behind.
That's a big reason why the idea of consolidating your debts into a single monthly payment has become so appealing recently. Rolling multiple debts into one can make it a lot easier to stay on top of what's owed. But with credit card interest rates hovering near record highs — averaging around 22% currently — and the average cardholder carrying about $8,000 in revolving debt, streamlining your payments can be more than just a convenience. It can also be a great strategy for reducing financial stress, avoiding missed payments and lowering the overall cost of your debt over time.
Turning five or six debts into just one manageable payment isn't something that happens automatically, however. You'll need to explore your options and make sure you're choosing the right approach for your financial situation. Below, we'll examine what to know about how to consolidate your debt and which strategies can help you make it work.
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How do I put all of my debt into one payment?
The process of turning multiple debts into a single monthly payment is called debt consolidation. At its core, it means combining several balances (usually high-rate debts) into one new loan so that you only have to manage one due date, one interest rate and one payment. There are several ways to achieve this goal, including:
Personal consolidation loans: Banks, credit unions and online lenders offer personal loans specifically designed for debt consolidation. These loans typically have fixed interest rates, fixed repayment terms and a single monthly payment. If you have good to excellent credit, you might qualify for an interest rate that's significantly lower than what you're currently paying, especially on your credit card debt.
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Balance transfers: Many credit card companies offer promotional 0% APR periods on balance transfers, typically lasting up to 21 months. By transferring high-rate credit card balances to a new card with a promotional rate, you can save on interest and focus on paying down the principal balance. These cards usually charge a balance transfer fee (typically 3% to 5% of the transferred amount), however, and the regular rate sets in after the promotional period ends. So, if you haven't paid it off at that point, you could be paying as much or more in interest as you currently are.
Home equity options: If you own a home with plenty of equity, you might consider borrowing against it with a home equity loan or a home equity line of credit (HELOC). These secured borrowing options often offer lower interest rates than unsecured options because your home serves as collateral, and you can use the funds to pay off multiple debts, essentially rolling them into one monthly payment. However, this approach puts your home at risk if you can't make payments, so proceed with caution.
Debt management: Credit counseling agencies offer debt management plans where they negotiate with creditors on your behalf, potentially securing lower interest rates and waived fees. You then make one monthly payment to the agency each month, which distributes the funds to your creditors. This approach essentially allows you to consolidate your debt without borrowing again, which can be a big positive for some, but it may not offer enough relief for others.
Debt consolidation programs: Enrolling in a debt consolidation program allows you to consolidate your debt in much the same way that traditional debt consolidation does. The main difference is that rather than taking out a loan from a bank or credit union, you work with a debt relief company's third-party partner lenders to secure the loan. While rates can be higher with this option, it does allow for more flexible borrowing parameters, as the partner lenders are accustomed to working with borrowers who may have higher debt-to-income ratios or other credit issues.
The bottom line
Debt consolidation can be a powerful tool for simplifying your financial life and potentially saving money through lower interest rates. Before proceeding with any consolidation option, though, it's important to carefully evaluate the total cost over the life of the loan, not just the monthly payment. A lower payment stretched over a longer term might feel more manageable — but it could result in paying more interest over time.
And, it's also important to remember that successful debt consolidation requires discipline and patience. The journey to financial freedom doesn't happen overnight and requires consistent effort and a solid plan. Still, the peace of mind that comes from having a single, manageable payment and a clear timeline for becoming debt-free is often worth the effort that debt consolidation requires.