Debt consolidation loans in Texas: your options and the rules that protect you

Your 4 options in Texas, at a glance

• Credit union or bank loan: a fit if you can join and have fair to good credit.
• Online lender: useful for seeing several rates at once. Rates vary widely.
• Nonprofit debt management plan (DMP): not a loan. One monthly payment to an agency that negotiates with your card issuers.
• Balance transfer card: can win with strong credit and a fast payoff plan.

How debt consolidation works

One new loan pays off several higher-rate debts, and you repay it in fixed monthly payments. It only saves money if the new APR, fee included, is lower than what you pay now and the paid-off cards stay paid off. For the full walkthrough, read what debt consolidation is and how it works, or put your own numbers into our Should I consolidate? calculator.

Option 1: Texas credit unions and banks

Texas credit unions rank near the top of local results for this search. Lendifi is not paid by any institution below; they are real options to check.

• PrimeWay Federal Credit Union (Houston) has a debt consolidation loan page.
• Community Resource Credit Union (Baytown area) offers a debt consolidation loan.
• DATCU (Denton and North Texas) has a debt consolidation loan page.
• Neighborhood Credit Union (Dallas area) says Texas residents can become members.

We do not quote rates, because we only publish one copied from the lender's own page on the day we update this guide. Check APR, fees, and membership rules directly. One rule applies to every federal credit union: the NCUA Board extended a temporary 18% interest rate ceiling on federal credit union loans to September 10, 2027 (NCUA). State-chartered credit unions follow state rules. Find more with the federal credit union locator.

Before you apply, ask for the APR with fees included, whether any fee comes out of the loan amount, whether there is a prepayment penalty, and whether the lender pays your card issuers directly.

Option 2: online lenders through a comparison

Lendifi is a comparison service, not a lender. When you use our form, your request may be passed to a lending partner, and we may be paid by that partner. You are not obligated to accept anything. We cannot promise an offer or approval, and any offer comes with terms set by the lender. You can read how we make money and our editorial policy.

Compare offers on APR, total cost, and payment with our guide to comparing personal loan offers. See also our personal loans page and debt consolidation loans page.

Option 3: a nonprofit debt management plan

A DMP is not a loan. A credit counseling agency negotiates lower rates or waived fees with your card issuers, you pay the agency once a month, and it pays your creditors. Enrolled cards are usually closed.

Texas regulates this closely. A person may not provide a debt management service to a consumer in Texas unless it is registered with the Consumer Credit Commissioner, wherever the company is located (Texas Finance Code Section 394.204). Fees are capped by Section 394.210 and adjusted for inflation. In its February 4, 2026 Texas Credit Letter, the OCCC set the caps at $144 for setup and, each month, the lesser of $14 per account or $72 (OCCC). With four accounts in a plan, the monthly cap works out to $56. With six or more, it tops out at $72.

A provider also may not lend you money or take a security interest in your property (Section 394.212). To find an agency, try the NFCC member directory or the U.S. Trustee Program's approved agency list, which covers pre-bankruptcy counseling and is not an endorsement of a plan. Confirm Texas registration with the OCCC before you enroll. For the difference between a DMP and debt settlement, see debt consolidation vs. debt settlement.

Option 4: a balance transfer card

A 0% intro card can beat any loan if you clear the balance before the intro rate ends and the transfer fee is smaller than the interest saved. See debt consolidation vs. balance transfer.

Texas rules that matter to you

Non-bank lenders charging more than 10% need an OCCC license. The OCCC says non-depository lenders that make, transact, or collect loans with a rate of interest greater than 10% must be licensed by the OCCC (OCCC). Chapter 342 applies to consumer loans above 10% a year made to someone in Texas, and banks and savings banks do not need the license (Sections 342.005 and 342.051).

Licensed lenders face rate brackets that move every July. Under the simple-interest structure in Section 342.201(e), a licensed lender may charge up to 30% a year on the first part of the cash advance, 24% on the next part, and 18% on the part above that. The statute ties the dollar cutoffs to a consumer price index, and the OCCC publishes them. For loans made from July 1, 2026 through June 30, 2027, the cutoffs are $4,600, $9,660, and $23,000 (OCCC Texas Credit Letter).

The cap is a ceiling, not a price. On a $3,000 loan for 24 months, the top 30% rate means a payment of $167.74 and $1,025.76 of interest. At 18%, the payment is $149.77 and interest is $594.48. That is $431.28 saved by comparing, on a small loan.

Fees are limited too. Section 342.201 allows a one-time administrative fee, and the OCCC's February 4, 2026 notice set the maximum for that fee at $130. Ask any lender for its fees in dollars.

This is general information, not legal advice. For a problem with a licensed lender, call the OCCC consumer helpline at 800-538-1579 or email consumer.complaints@occc.texas.gov (OCCC).

How to check a lender in Texas

1. Ask the lender for its NMLS ID. Licensed lenders often list it in the website footer.
2. Search it on NMLS Consumer Access. The OCCC's licensing portal says regulated lenders now apply through NMLS, so look for a Texas OCCC license and its status.
3. For older records, use the OCCC's ALECS Advanced Search: pick License, choose Regulated Lender, and search the business name. Some records show "Transitioned to NMLS."
4. Banks are on FDIC BankFind and credit unions on the NCUA locator.
5. Check that the name and address match. Scammers copy real lenders' names.
6. To see whether the OCCC has complaints on file about a lender, send a written request to public.information@occc.texas.gov (OCCC).

What to avoid in Texas

The OCCC oversees businesses that offer payday and auto title loans in Texas (OCCC). These are poor tools for consolidating debt. Also be wary of:

• Any company that wants a fee before you get a loan.
• A debt management company that is not registered with the OCCC, or that charges more than the caps above.
• Pressure to sign the same day.

See personal loan scams and red flags for more.

A note from our founder

This guide is built from Texas statutes and regulator pages, not from my own borrowing. When I paid off about $10,000 of credit card debt with a fixed-rate personal loan, I walked away from lenders whose sales pressure felt aggressive, and what I wanted was several real offers side by side.

In Texas, that means a credit union quote plus at least one other offer, compared on total cost. Other states: Utah and California.

Sources

• Texas Office of Consumer Credit Commissioner, Regulated Lenders (license required for non-depository lenders making loans above 10%; two Chapter 342 rate structures). Accessed October 13, 2026.
• Texas Finance Code Chapter 342, Sections 342.005 (applicability), 342.051 (license required; banks exempt), and 342.201 (maximum interest charge). Accessed October 13, 2026.
• OCCC, Texas Credit Letter 2026, Notice of Rate Bracket Adjustment and fee adjustments, February 4, 2026 (Section 342.201(e) brackets of $4,600, $9,660, and $23,000 for loans made July 1, 2026 through June 30, 2027; Section 394.210 debt management fee caps; Section 342.201(g) administrative fee of $130). Accessed October 13, 2026.
• Texas Finance Code Chapter 394, Sections 394.204 (registration), 394.210 (permitted fees), and 394.212 (prohibited acts). Accessed October 13, 2026.
• OCCC, File a complaint and Consumer Assistance Helpline (800-538-1579; complaint file requests). Accessed October 13, 2026.
• OCCC ALECS Advanced Search and NMLS Consumer Access.
• National Credit Union Administration, NCUA Board Extends Loan Interest Rate Ceiling, February 6, 2026, and Credit Union Locator.
• FDIC BankFind; National Foundation for Credit Counseling; U.S. Trustee Program, approved credit counseling agencies.

Reviewed by the Lendifi Editorial Team. Updated October 13, 2026.

Lendifi is operated by Apex Lead Group LLC. Lendifi is not a lender and does not make loans or credit decisions. We are an advertising-supported comparison service, and some links on this page are affiliate links through which we may earn a commission at no cost to you. Any rates, payments, or savings figures shown are estimates based on average market data and are not guarantees of approval or financing. Actual rates and terms are determined by the lender based on your full credit profile. See our Ad Disclosure for details.