Question 1

What is debt consolidation?

Accepted Answer

Debt consolidation combines multiple high-interest debts — credit cards, personal loans, medical bills — into a single monthly payment, typically at a lower interest rate. The goal is a simpler payment and less total interest paid over the life of your debt.

Question 2

Do I qualify?

Accepted Answer

Most of our partner programs require at least $10,000 in unsecured debt and verifiable income. We work with a range of credit profiles — from 500 to 750+ — so even if you've been turned down before, it's worth checking your options in 60 seconds.

Question 3

Will checking my options hurt my credit?

Accepted Answer

No. Our initial match uses a soft inquiry only, which has zero impact on your credit score. A hard pull only happens if you choose to formally apply with a partner lender after reviewing your offer.

Question 4

How much does Lighten Debt cost?

Accepted Answer

Lighten Debt is 100% free to use. We're compensated by our vetted partners when they help you, so you never pay us a fee — and you're never obligated to accept an offer.

Question 5

What kinds of debt can be consolidated?

Accepted Answer

Credit cards, store cards, personal loans, medical bills, payday loans, and some private student loans. Secured debts like mortgages, auto loans, federal student loans, and tax debt typically aren't eligible.

Question 6

How does a debt consolidation loan work?

Accepted Answer

A lender gives you one new loan large enough to pay off your existing balances. You're left with a single fixed monthly payment, usually at a lower APR than credit cards (often 7–18% vs. 22–29%). Terms typically run 24–60 months.

Question 7

What APR can I expect on a consolidation loan?

Accepted Answer

Rates depend on your credit score, income, and debt-to-income ratio. Borrowers with 700+ scores often see 7–12% APR; mid-credit (620–699) typically sees 13–22%. Even mid-tier rates beat 25%+ credit card APRs.

Question 8

Will a consolidation loan hurt my credit?

Accepted Answer

Short-term, expect a small dip (5–10 points) from the hard inquiry and new account. Long-term, most borrowers see scores improve as revolving credit utilization drops and on-time payments build history.

Question 9

What is debt settlement and how does it work?

Accepted Answer

Debt settlement negotiates with your creditors to accept less than the full balance — typically 40–60 cents on the dollar. You stop paying creditors directly and instead build up funds in a dedicated account that's used to negotiate lump-sum payoffs. Programs usually run 24–48 months.

Question 10

Does debt settlement hurt my credit?

Accepted Answer

Yes — significantly, at first. Because you stop paying creditors during negotiation, accounts go delinquent and your score can drop 100+ points. For people already behind, the credit impact may be smaller. Most clients recover within 2–3 years after completing the program.

Question 11

How much can I save with debt settlement?

Accepted Answer

Most clients resolve their enrolled debt for roughly 50% of what they owed before fees. After program fees (typically 18–25% of enrolled debt), net savings are often 25–40% of the original balance — but it varies by creditor and situation.

Question 12

Will I be sued during debt settlement?

Accepted Answer

It's possible. When you stop paying, creditors may sell or sue on the debt. Reputable settlement companies factor this risk into their negotiation strategy and prioritize accounts most likely to escalate. Always ask your partner how they handle lawsuits.

Question 13

What is a debt management plan (DMP)?

Accepted Answer

A DMP is a structured repayment program run by a nonprofit credit counseling agency. The counselor negotiates lower interest rates (often 6–9%) with your creditors and rolls your payments into one monthly deposit. You pay back 100% of what you owe, usually within 3–5 years.

Question 14

Does a DMP hurt my credit?

Accepted Answer

Minimal direct impact. Some creditors note 'paid through a DMP' on your report, but on-time payments and falling balances usually improve scores over time. Unlike settlement, you're paying balances in full — so there's no charge-off or collections damage.

Question 15

What's the difference between a DMP and debt consolidation?

Accepted Answer

A consolidation loan is a new loan that pays off existing debts. A DMP isn't a loan — it's a negotiated repayment plan with your existing creditors. DMPs are usually a better fit if you can't qualify for a low-APR loan but still want to pay back what you owe.

Question 16

Which option is right for me — loan, settlement, or DMP?

Accepted Answer

Roughly: a consolidation loan fits if your credit is fair-to-good (620+) and you can afford full payoff at a lower rate. A DMP fits if you can afford payments but rates are crushing you. Settlement fits if you genuinely can't afford full repayment and are willing to accept credit damage to resolve faster. We'll help you compare side-by-side.

Question 17

How fast can I get started?

Accepted Answer

The 60-second match happens instantly. Most partner lenders fund consolidation loans within 1–7 business days. Settlement and DMP programs typically begin within 2 weeks after enrollment.

Question 18

What if I have less than $10,000 in debt?

Accepted Answer

Most consolidation and relief programs aren't cost-effective below $10k. We'll point you to free resources — like balance-transfer cards, nonprofit credit counseling, and DIY APR-reduction scripts — that work better for smaller balances.

Straight answers, no small print.