Program business – Top 100 Programs http://top100programs.com/ Thu, 03 Mar 2022 13:00:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://top100programs.com/wp-content/uploads/2021/10/icon-8-120x120.png Program business – Top 100 Programs http://top100programs.com/ 32 32 Debt Consolidation Loan vs. Credit Card Refinancing: How To Choose https://top100programs.com/debt-consolidation-loan-vs-credit-card-refinancing-how-to-choose/ Thu, 03 Mar 2022 10:46:29 +0000 https://top100programs.com/?p=841 Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. 9.95% – 35.99% APR $2,000 […]]]>




Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


9.95% – 35.99% APR
$2,000 to $35,000** 550 2, 3, 4, 5*
  • Fixed APR:

    9.95% – 35.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    550
  • Loan amount:
    $2,000 to $35,000**
  • Loan terms (years):
    2, 3, 4, 5*
  • Time to fund:
    As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except CO, IA, HI, VT, NV NY, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Loan servicer:
    Avant
  • Loan Uses:
    Debt consolidation, emergency expense, life event, home improvement, and other purposes
  • Min. Income:
    $1,200 monthly


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.79% – 17.99% APR
$10,000 to $50,000 700 3, 4, 5, 6
  • Fixed APR:

    6.79% – 17.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    700
  • Loan amount:
    $10,000 to $50,000
  • Loan terms (years):
    3 to 6
  • Time to fund:
    Next business day
  • Fees:
    No prepayment penalty
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, home improvement, self-employment, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.99% – 35.99% APR
$5,000 to $35,000 600 2, 3, 4, 5
  • Fixed APR:

    4.99% – 35.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    600
  • Loan amount:
    $2,000 to $50,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as 1 – 3 business days after successful verification
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all states except DC, IA, VT, and WV
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan servicer:
    Best Egg and Blue Ridge Bank
  • Min. Income:
    None
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.99% – 24.99% APR
$2,500 to $35,000 660 3, 4, 5, 6, 7
  • Fixed APR:

    5.99% – 24.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $2,500 to $35,000
  • Loan terms (years):
    3, 4, 5, 6, 7
  • Time to fund:
    As soon as the next business day after acceptance
  • Fees:
    Late fee
  • Discounts:
    None
  • Eligibility:
     Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan Uses:
    Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


7.99% – 29.99% APR
$10,000 to $50,000 Not disclosed by lender 2, 3, 4, 5
  • Fixed APR:

    7.99% – 29.99% APR
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $10,000 to $50,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as 2 business days
  • Fees:
    Origination fee
  • Discounts:
    No
  • Eligibility:
    Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WY
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


7.04% – 35.89% APR
$1,000 to $40,000 600 3, 5
  • Fixed APR:

    7.04% – 35.89% APR
  • Min. credit score:
    600
  • Loan amount:
    $1,000 to $40,000
  • Loan terms (years):
    3, 5
  • Time to fund:
    Usually takes about 2 days†
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Loan servicer:
    LendingClub Bank
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


9.99% – 35.99% APR
$2,000 to $36,500 580 2, 3, 4
  • Fixed APR:

    9.99% – 35.99% APR
  • Min. credit score:
    580
  • Loan amount:
    $2,000 to $36,500
  • Loan terms (years):
    2, 3, 4
  • Time to fund:
    As soon as the next business day
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except NV and WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    $20,000
  • Loan Uses:
    Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.49% – 19.99% APR
$5,000 to $100,000 660 2, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)
  • Fixed APR:

    2.49% – 19.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $5,000 to $100,000
  • Loan terms (years):
    2, 3, 4, 5, 6, 7*
  • Time to fund:
    As soon as the same business day
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except RI and VT
  • Customer service:
    Phone, email
  • Soft credit check:
    No
  • Loan servicer:
    LightStream
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.99% – 19.99% APR1
$3,500 to $40,0002 660
(TransUnion FICO®️ Score 9) 3, 4, 5, 6, 7
  • Fixed APR:

    6.99% – 19.99% APR1
  • Min. credit score:
    660
    (TransUnion FICO®️ Score 9)
  • Loan amount:
    $3,500 to $40,0002
  • Loan terms (years):
    3, 4, 5, 6
  • Time to fund:
    Many Marcus customers receive funds in as little as three days
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan servicer:
    Goldman Sachs
  • Min. Income:
    $30,000
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


18.0% – 35.99% APR
$1,500 to $20,000 None 2, 3, 4, 5
  • Fixed APR:

    18.0% – 35.99% APR
  • Min. credit score:
    None
  • Loan amount:
    $1,500 to $20,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as the same day, but usually requires a visit to a branch office
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Must have photo I.D. issued by U.S. federal, state or local government
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.99% – 17.99% APR
$600 to $50,000
(depending on loan term) 660 1, 2, 3, 4, 5
  • Fixed APR:

    4.99% – 17.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $600 to $50,000*
  • Loan terms (years):
    1, 2, 3, 4, 5
  • Time to fund:
    2 to 4 business days after verification
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Does not disclose
  • Customer service:
    Phone, email
  • Soft credit check:
    No
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, home improvement, transportation, medical, dental, life events


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.95% – 35.99% APR
$2,000 to $40,000 640 3, 5
  • Fixed APR:

    6.95% – 35.99% APR
  • Min. credit score:
    640
  • Loan amount:
    $2,000 to $40,000
  • Loan terms (years):
    3, 5
  • Time to fund:
    As soon as one business day
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all states except IA, ND, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.74% – 20.28% APR10
$5,000 to $100,000 Does not disclose 2, 3, 4, 5, 6, 7
  • Fixed APR:

    5.74% – 20.28% APR10
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $5,000 to $100,000
  • Loan terms (years):
    2, 3, 4, 5, 6, 7
  • Time to fund:
    3 business days
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except MS
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Solely for personal, family, or household uses


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


8.93% – 35.93% APR7
$1,000 to $50,000 560 3 to 5 years 8
  • Fixed APR:

    8.93% – 35.93% APR7
  • Min. credit score:
    560
  • Loan amount:
    $1,000 to $50,000
  • Loan terms:
    3 to 5 years 8
  • Time to fund:
    Within one day, once approved9
  • Loan types:
    Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    A U.S. citizen or permanent resident; not available in DC, SC, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.94% – 35.97% APR
$1,000 to $50,000 560 2, 3, 5, 6
  • Fixed APR:

    5.94% – 35.97% APR
  • Min. credit score:
    560
  • Loan amount:
    $1,000 to $50,000*
  • Loan terms (years):
    2, 3, 5, 6
  • Time to fund:
    Within a day of clearing necessary verifications
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except West Virginia
  • Customer service:
    Email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, credit card refinancing, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.37% – 35.99% APR4
$1,000 to $50,0005 580 3 to 5 years4
  • Fixed APR:

    4.37% – 35.99% APR4
  • Min. credit score:
    580
  • Loan amount:
    $1,000 to $50,0005
  • Loan terms (years):
    3 to 5 years4
  • Time to fund:
    As fast as 1 business day6
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    $12,000
  • Loan Uses:
    Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
Compare rates from these lenders without affecting your credit score. 100% free!
Compare Now

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | 10SoFi Disclosures | Read more about Rates and Terms



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5 Best Debt Consolidation Loans of 2021 https://top100programs.com/5-best-debt-consolidation-loans-of-2021/ Thu, 03 Mar 2022 10:44:46 +0000 https://top100programs.com/?p=829 If you have several high-interest loans, debt consolidation can help you manage your finances by combining multiple debts into a single payment. We researched and selected the five best debt consolidation loans to help you get back on track and adequately manage your monthly bills. Our Top Picks for Best Debt Consolidation Loans LightStream – […]]]>



If you have several high-interest loans, debt consolidation can help you manage your finances by combining multiple debts into a single payment. We researched and selected the five best debt consolidation loans to help you get back on track and adequately manage your monthly bills.

Our Top Picks for Best Debt Consolidation Loans

  • LightStream – Best for Excellent Credit
  • SoFi – Best for Low Interest Rates
  • PenFed – Best for Small Debt
  • Fiona – Best for Bad Credit
  • Discover – Best for Credit Card Debt Consolidation

Best Debt Consolidation Loans Review

  • No fees for loan application, origination or prepayment penalty
  • No appraisals
  • Choose when you want to receive your money
  • Rate discount when you choose autopay
  • Minimum loan amount is $5,000
  • Autopay discount option only available before loan funding
  • Lowest rates require excellent credit

LightStream is our top choice for borrowers with excellent credit who don’t want to pay origination fees or prepayment penalties on their debt consolidation loan. The company offers personal loans up to $100,000 with funding available the same day of approval, and has one of the lowest annual percentage rates (APR), starting at 5.93% with an autopay discount.

LightStream also features a completely online application and a debt consolidation loan calculator with a soft credit check that won’t lower your score. With its Rate Beat Program, LightStream claims it will lower your rate by .10 percentage points if you are approved by a competing lender for an unsecured loan with the same terms.

LightStream holds the #1 spot on J.D. Power’s Consumer Lending Satisfaction Study of 2020.

  • Fixed rates from 4.99%-19.63% with autopay discount
  • No late fees on personal loans
  • Pay lenders directly
  • Funds are not available on the same day of approval
  • Loan terms start at three years up to seven years
  • Minimum loan amount is $5,000

SoFi offers credit card consolidation loans rates starting at 4.99% APR with AutoPay. Most lenders have interest rates up to 35.99%, but SoFi caps their competitive rates at 19.63% APR with AutoPay discount. If the customer declines the AutoPay option, interest rates will be higher.

SoFi’s personal loans have no fees, and customers can make payments and check their loan status on the SoFi mobile app, available for iOS and Android. The company also offers online prequalification with a soft credit pull, fixed rates for the life of the loan, and a fixed payment schedule.

SoFi takes the #4 spot in JD Power’s Consumer Lending Satisfaction Study of 2020.

  • APR starts at 5.99%
  • Apply and check application status online
  • The loan is funded 1-2 business days after approval
  • Loans are up to only $50,000
  • You need to be a member of the credit union to apply

PenFed personal loans start at $600, making it the best lender for someone with debt obligations under $1000. This lender has fixed interest rates, a debt-to-income calculator, and an online application. PenFed also has a mobile application for iOS and Android where members can check their loan status, make loan payments, mobile deposits, and transfer your money between accounts.

To become a member of the PenFed credit union, customers have to open a savings account with a minimum deposit of $5. After approval, the loan is disbursed within 1-2 business days. The APR rate at the time of loan approval is based on creditworthiness, a credit inquiry, and the length of the PenFed membership.

PenFed is not part of J.D. Power’s Consumer Lending Satisfaction Study of 2020; however, it made it to our top list for its low interest rates and no loan fees.

  • Works with any type of credit
  • Online application process
  • Online loan calculator
  • Credit requirements depend on the company selected
  • Some lenders will charge an origination fee of 1-6% of the loan amount

With partnerships with LendingClub, SoFi, Avant, and Marcus by Goldman Sachs, among others, Fiona stands out for providing debt consolidation options for people with any type of credit. Fiona also offers no application fee or prepayment penalty, a complete online application process, and customer service by email or phone.

Fiona loan offers include refinancing for secured and unsecured loans including auto, student loan, and mortgage refinance. The company also provides customers with a reference blog about debt repayment and other financial advice.

Fiona is not part of J.D Power’s Consumer Lending Satisfaction Study; however, some of its partners are on the 2020 list.

  • Several debt consolidation options: balance transfer, personal loans, home equity loans, student consolidation loans
  • Application assistance by loan specialists
  • Discover mobile application
  • Eligibility requirement of a minimum household annual income of $25,000
  • Late payment fee of $39

Discover offers a wide variety of options for debt consolidation. Customers can select a credit card balance transfer with a promotional interest rate, apply for a personal loan, or use their home equity for debt consolidation. Discover doesn’t charge any origination fees, and its personal loan rates are between 6.99%-24.99% APR.

Discover offers customer service 24/7 over the phone and has a mobile app for iOS and Android that allows customers to check their FICO score, access their bank account, make payments, and check balances, among other features.

Discover holds the #3 spot for J.D. Power’s Consumer Lending Satisfaction Study of 2020.

Other lenders we considered

National Debt Relief

  • Negotiate with creditors to settle outstanding debt
  • Online quote
  • Only work with clients that have at least $7,500 in debt
  • A fee of 15-25% of the debt amount

National Debt Relief didn’t make it to our main list because qualifying borrowers need to have at least $7,500 in high-interest debt. Also, they charge a fee of at least 15% of the debt amount. National Debt Relief is not a loan originator but instead a debt management service.

AM One

  • Helps with credit improvement if the loan is denied
  • US-based live support
  • Credit requirements depend on the company selected
  • No information about fees on the website
  • Credit requirements and APR depend on the company selected

There is not enough information about interest rates and loan fees on AM One’s website to include this lender in our top list. With AM One, interest rates and loan fees depend on the lender the borrower is matched with at the time of approval.

Upgrade

  • Funds within 24 hours after approval
  • No prepayment penalty
  • All personal loans have a 2.9% to 8% origination fee
  • The lowest rates require autopay and paying off a portion of existing debt directly

Upgrade didn’t make it into our main list because of its high origination fee and not ranking in J.D. Power’s Consumer Lending Satisfaction Study.

Best Egg

  • Approval in minutes
  • APR from 5.99%-35.99%
  • Below average in J.D. Power’s Consumer Lending Satisfaction Study
  • Origination fee of 0.99-5.99% of the loan amount

Best Egg is not part of our main list because of its high origination fee and below-average ranking in J.D. Power’s Consumer Lending Satisfaction Study.

Lending Club

  • Customized loan options
  • 15-days grace period after the due date to pay without penalties
  • Origination fee of 3-6% of the loan amount
  • Higher APR rates than other lenders, starting at 7.04%

Lending Club, a marketplace for debt consolidation loans, didn’t make it into our top selection because of its origination fee and higher interest rates than other lenders on our list.

OneMain Financial

  • Debt consolidation calculator
  • Loan specialist counseling
  • APR from 18%-35.99%
  • Late payment fees from 1.5-15% of loan payment
  • Origination fees from 1-10% of the loan amount

OneMain Financial is not part of our best personal loan list because of its high APR rates, origination fees, and late payment fees compared to other lenders on our list. Also, this lender scored a below-average rate in JD Power’s Consumer Lending Satisfaction Study.

Avant

  • Funded one day after approval
  • No prepayment penalty
  • Administration fee up to 4.75%
  • APR from 9.95%-35.99%

Avant didn’t make it into our top list because of its high interest rate and administration fee. Also, this lender rated below average in J.D. Power’s study about consumer lending satisfaction.

Marcus by Goldman Sachs

  • No fees
  • Loan options within 5 minutes
  • Loan disbursed within five days after approval
  • Rates from 6.99% APR to 19.99%
  • Not suitable for smaller debt

Marcus by Goldman Sachs isn’t on our top list because of their interest rates and longer waiting time for loan disbursement compared to other lenders.

Upstart

  • Loans from $1,000-$50,000
  • Check loan rate online
  • Only offers three and five years terms
  • FICO or Vantage Score of at least 600

Upstart didn’t make it into our best debt consolidation loans list because of their limited-term offering and below-average score on J.D. Power’s study. Upstart could be a good option for people with fair credit to excellent credit scores.

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Debt Consolidation Loans Guide

In this guide, you can find information about how debt consolidation loans work, step-by-step processes on how to apply, and other alternatives for debt management.

What is a debt consolidation loan?

A debt consolidation loan is an unsecured personal loan that combines several debts into one installment loan payment with a lower interest rate (APR). It’s designed to help borrowers manage credit card debt and unsecured debt with an outstanding balance and high APR rates.

There are different types of debt consolidation options:

  • Personal loan: unsecured loan to pay for existing debt, finance a big purchase, pay medical bills or cover home improvements or renovations
  • Balance transfer: when credit card debt is transferred to another credit card with a lower interest rate
  • Home equity loans and home equity lines of credit: lets the customer borrow money against its home equity. These are only tax-deductible when used for home improvements.

How does debt consolidation work?

Debt consolidation loans gather several debts into a new loan. The borrower uses the loan proceeds to pay other accounts, lowering their credit usage to one single lower monthly payment. Some financial institutions pay the lenders directly instead of depositing the loan money into a bank account.

How to get a debt consolidation loan

  1. Check your credit score. This will help you obtain quotes without incurring multiple hard credit inquiries. Equifax, Experian, and TransUnion are the three main credit bureaus.
  2. Make a list of all your debt and credit utilization.
  3. Check what interest rate you’re currently paying on your credit cards and other outstanding debt.
  4. Research lenders, their interest rates, loan terms and fees.
  5. Use a loan or a debt-to-income ratio calculator to get an idea of the rate you can obtain with your credit score and what payment options are the best for you.
  6. Decide on a lender that offers a lower interest rate — and lower payment — than what you currently have.
  7. If the pre-approved loan has a higher interest rate than what you’re currently paying for in your accounts, ask a co-borrower with good credit to co-sign it.
  8. Apply for a loan.
  9. Analyze your offer and accept it.
  10. Obtain the loan funds and pay your debt.

If your loan application is denied because of poor or no credit, the next step should be to improve your credit score and credit history. To fix your credit, you can find a credit repair service or research and improve your credit report on your own.

Does debt consolidation affect your credit score?

Yes, debt consolidation can have a negative or positive impact on your credit score. It all depends on the borrower making the right choices when it comes to loan selection. It’s important to know that debt consolidation is not a strategy to increase your credit score; however, it can prove to be beneficial in the long run if the borrowers make on-time payments and don’t incur any new debt.

Alternatives to debt consolidation loans

Instead of applying for a personal loan to consolidate debt, lenders and credit card companies offer other options to their customers.

Home equity loans (HELOCs)

Home equity loans and home equity lines of credit let the customer borrow money against its home equity. Home equity is the difference between the value or amount your home could be sold for and what you owe to the mortgage lender. With a loan, the home equity is disbursed in one payment, with a line of credit you can draw from the funds as needed. HELOCs come as loans or lines of credit. Both are only tax-deductible when used for home improvements.

Balance transfer credit cards

Moving balances from a card with a high APR rate to another credit card with a lower APR rate is an option to consolidate credit card debt. Many credit card companies offer no interest rates on their cards for 12 months, allowing customers to pay or lower their debt during that time.

Bankruptcy

Bankruptcy is a legal action taken by people or businesses unable to manage outstanding debt. It should be the last resource for dealing with creditors and debt issues. According to The United States Department of Justice, several repayment options are available when filing for bankruptcy.

The most common are:

  • Chapter 7: when a trustee takes control of your property to sell it or turn it into a profit to pay your creditors. Depending on the state you live in, and which federal laws apply to it, you’ll be able to keep some of your properties.
  • Chapter 13: A court approves a repayment plan where you agree to pay part of your wages to your creditors. A trustee will be appointed by the court to collect the money from you and make sure that the payment plan is completed.

Not all debt can be discharged by the court when you file for bankruptcy. Some of the debt that cannot be discharged is:

  • Child support
  • Student loans
  • Court fines
  • And most taxes

Bankruptcy will appear on your credit report for around ten years, making it more challenging to apply and be approved for credit in the future.

Try to avoid payday loans, which are loans given at a very high interest rate and have to be completely paid back when the borrower receives their next paycheck.

Debt Consolidation Loans FAQ

How do debt consolidation companies work?

Debt consolidation companies work with people to reduce their monthly debt by consolidating multiple debts into one. Some of these companies charge a fee of the debt amount to help their customers. Besides hiring a debt consolidation company, you can achieve debt consolidation through personal loans, balance credit cards, or home equity loans/lines of credit.

How to get a debt consolidation loan with bad credit?

There are companies, like Fiona, that work with customers with poor credit. For people with a bad or no credit history, APR rates are usually higher than those with excellent credit scores. Another option is to repair your credit and increase your credit score before applying for a personal loan.

Debt consolidation or bankruptcy, which is better?

Bankruptcy should be the last resort to managing your debt. Debt consolidation is a better option than bankruptcy and, with time, can help increase your credit score and improve its history. Bankruptcy stays in your credit report for up to 10 years.

What is the best debt consolidation loan?

In our selection of best debt consolidation loans, we recommend lenders that can help according to the needs of their borrowers. If you’re interested in paying no fees, we recommend LightStream. For lower interest rates, we recommend SoFi, and for bad credit, we recommend Fiona.

Where can I get a debt consolidation loan?

You can apply for a debt consolidation loan online using one of our recommendations, or you can also apply for a loan at banks, credit unions, online marketplaces, or through a debt consolidation agency like National Debt Relief.

How to get approved for a debt consolidation loan?

Before applying for a debt consolidation loan, check your credit score and debt-to-income ratio. Many borrowers require a minimum credit score of around 600 to qualify for a personal loan. You can research lenders, check rates, and apply for those who fit the criteria with that information. If your quotes come back with a high interest rate, consider applying with a co-signer, it can improve your chances of getting a better interest rate and lower monthly payment.

How We Chose the Best Debt Consolidation Loans

To select the best debt consolidation loans we took into consideration,

  • Lenders offering low APR Rates, a variety of loan repayment terms, access to loan specialists, an online application, debt calculator, fast funding, no application fees or a low origination fee
  • J.D. Power Consumer Lending Satisfaction Study: This study measures overall customer satisfaction based on application and approval process, loan management, offerings, and terms and closing
  • Companies with customer service available through phone, chat, or email

Summary of Money’s Best Debt Consolidation Loans of 2021

  • LightStream – Best for Excellent Credit
  • SoFi – Best for Low Interest Rates
  • PenFed – Best for Small Debt
  • Fiona – Best for Bad Credit
  • Discover – Best for Credit Card Debt Consolidation



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2021’s Best Debt Consolidation Loans: Top Lenders https://top100programs.com/2021s-best-debt-consolidation-loans-top-lenders/ Thu, 03 Mar 2022 10:44:27 +0000 https://top100programs.com/?p=826 This article is sponsored content. Interested in advertising with us? Click here. This young couple never imagined being where they are now three years ago. The hope with which they started their small eatery at the outskirts of Dallas had crashed, and they are now caught in an endless debt trap, unable to find a […]]]>



This young couple never imagined being where they are now three years ago. The hope with which they started their small eatery at the outskirts of Dallas had crashed, and they are now caught in an endless debt trap, unable to find a way out.

Incidentally, they are not the only ones facing such a dilemma. Thousands of people across the United States face the same fate. Americans, with only one type of debt, owe over $100,000 on average, and at least 60% of Americans are in deep debt.

In the past 30 years and a trifle more, debt has been on a prowl across the country, murdering the American dream almost with impunity.

The barista at your neighborhood coffee bar is forced to work an extra shift daily only to make ends meet. The single mom lives in a state of claustrophobia under persisting anxiety over how she will keep her child fed. You may even find the high school student next door unsure about whether he or she would be able to make it to college without walking into debt. Your neighbor may even tell you how they are often forced to borrow more to repay earlier outstanding loans.

This is the narrative that defines Americans today. It seems almost every soul you see rushing for work is carrying an invisible pile on their head — the stack of unpaid tax and credit card bills.

The boulder of debt has crushed the American dream, pulverizing people pervasively as it keeps rolling unchecked.

Yet, in this all-pervading gloom, the country offers you scope to live a life of total freedom from all debts. There are two options. You can live a spartan life and stay clear of expenses that may take you your whole life to pay back, or you can avail of the service and guidance of a reliable debt consolidation company, which will show you the path to freedom from debt.

We know and understand your desperation to come out clean from your debts and your aspirations to live a life of freedom hereafter. And we feel your best option is to walk into the office of a reputable debt consolidation company and walk out as a free man. In their efforts to navigate you to freedom from debts, these companies usually consolidate all of your outstanding debts and negotiate a settlement by paying a part of what you owe.

Your freedom from debts, however, will depend on which company you finally decide to work with. Therefore, you must do your due diligence before you select the debt consolidation company to bail you out of the debt traps, or else you may walk into a bigger risk and messy financial arrangements.

List of the Best Debt Consolidation Companies of 2021

  1. CuraDebt — Overall Best Loan Consolidation Company
  2. Accredited Debt Relief — Best for Consolidating Debt to Save Hundreds of Dollars
  3. National Debt Relief — Best for Credit Card Consolidation Loan
  4. Citizens Debt Relief — Best for Fast & Consolidated Debt Relief
  5. DMB Financial — Best for Debt Settlement with Easy Repayment Terms
Courtesy of Credit Pros

#1. CuraDebt: Overall Best Loan Consolidation Company

The financial WizKids, who set up the company in 2000, has been aiding individuals and small businesses to walk out of their debts since 1996. And since then, the company has, thus far, helped thousands resolve their debts and created awareness about the importance of saving.

In the past 21 years, CuraDebt has earned an unparalleled reputation for being the best. It is believed that your passage from financial hardship to comfort can never be easier, faster, and smoother if you are not working with CuraDebt for your debt consolidation and resolution. Although the company consolidates and settles all kinds of debts, it is known for its specialization in tax debts, which most debt consolidation companies refuse to dabble in.

The transparency with which it usually offers, the efficiency with which it handles clients’ debt issues, and the speed with which it takes its customers from financial bondage to freedom have all become fables in the business of debt consolidation and settlement.

Highlights

  • CuraDebt’s services and programs are indeed one of the widest in the market. The company consolidates and settles credit card debt, medical debt, personal loans for debt and payday loans, tax debts, and private student loans.
  • The company does not insist upon a specific minimum amount of debt for a client to qualify for receiving services or the debt settlement programs. It, on the contrary, offers free consultation on how it proposes to consolidate and settle the debts and explains in detail the company’s working modules.
  • While most debt relief providers do not offer their services to clients having tax debts, CuraDebt offers help to enable you to settle your Federal and State taxes.
  • At the core of its unblemished reputation lies an army of happy clients who were successfully aided to move on with life free from debts.
  • CuraDebt offers one of the best ease of consultations. You can talk to any of its consultants either over the phone or meet one in person at the company’s office in Hollywood. The consultation is free because CuraDebt understands the angst a debtor is already in. This policy speaks volumes about the company’s sensitivity for the millions poorly mired in debts of all kinds.
  • The company is a member of the American Fair Credit Council (AFCC) and is certified by the International Association of Professional Debt Arbitrators (IAPDA).

Pros

  • No upfront fees or enrollment fees.
  • Available across 50 states of the U.S.
  • Settles outstanding debt issues between 24 and 48 months.
  • Works primarily on a flat-rate fee structure.
  • Charges 20% of what you owe.

Cons

  • Offers no help in lawsuits, utility bills, auto, student, or government loans, mortgage or home loans, and other secured debts.
  • No mobile applications and dashboards.
  • Not accredited with the Better Business Bureau.
Courtesy of Credit Pros

#2. Accredited Debt Relief: Best for Consolidating Debt to Save Hundreds of Dollars

The runner-up position on our list goes to none other than Accredited Debt Relief. The Texas-based firm is one of America’s leading companies with years of experience in debt consolidation under their belt and is an A+ accredited business under the Better Business Bureau (BBB). The firm is also certified by the American Fair Credit Council (AFCC). Accredited Debt Relief understands the frustration and suffering of multiple crushing debts and predatory interest rates from loans. So, the company tries to offer specially tailored services based on the needs and nature of a client’s unsecured loans. The company operates on three core values:

  1. Clients should come first, and each should be given a uniquely optimized solution to handle their situation.
  2. The company must try everything it can to help increase the financial savings of the client.
  3. The company must maintain honesty and transparency with the client at all times. The client came for help in desperate times, so it is immoral to fleece them.

Following these guidelines, the company has helped settle over $500 million in debt for over 140,000 Americans. Accredited Debt Relief can help you reduce your total debt by a whopping 50% by consolidating multiple debts into one and by helping you become debt-free as early as 12 months. If you have a debt of $25,000 or more, Accredited Debt Relief can significantly cut down your monthly payments. With a debt of $25,000, you can end up paying as low as $408 per month at 0% interest on the minimum amount and become debt-free in 48 months.

Getting started is easy. Accredited Debt Relief will ask you about your debt and quote you for service charges and consolidation loan amounts. Consultation and saving estimates are free, and you do not even need to pay any upfront enrollment fee.

Customer reviews for this firm have been nothing short of stellar. Accredited Debt Relief’s website proudly shows an average score of 4.9 stars out of 5 by Trustpilot. One verified customer stated that it was, “The best call I have ever made,” while another customer called the whole experience with the company, “Quick and painless.” So, what are you worrying about? Get relieved of debt by Accredited Debt Relief today.

Highlights

  • Reduces your debt by a maximum of 50%.
  • Combines multiple debts into a single easy to manage one.
  • Saves you hundreds of dollars each month.
  • Get approved for debt consolidation even if you have an imperfect and minimum credit score.
  • Easy to apply, and it is as simple as getting a quote online.
  • Over one million people have applied, with 140,000 clients enrolled and $500 million in debt resolved.
  • Be debt-free in as little as 12 to 48 months.

Pros

  • BBB rating of A+ and accredited by the AFCC.
  • Free consultation and saving estimates.
  • No upfront enrollment fee.
  • 0% interest rate on minimum monthly payment.
  • 9-star review on Trustpilot.
  • Norton-secured website.

Cons

  • Only ideal for unsecured debts or debts above $10,000.
Courtesy of Credit Pros

#3. National Debt Relief: Best for Credit Card Consolidation Loan

Since its founding in 2009, National Debt Relief has been a consistently high-ranking debt consolidation and relief firm. It has not changed as of 2021, as we place National Debt Relief at our number three spot. The New York-based firm is an A+ business accredited by the BBB. National Debt Relief is also certified by the International Association of Professional Debt Arbitrators (IAPDA) and AFCC. Whether it is major credit card debt, bank loans, or medical debt, National Debt Relief has you covered and can lower your debt by up to a staggering value of 50%. The company only charges 15-25% of your total debt as fees, so they still lower your debt by roughly 30% even after paying National Debt Relief. You can achieve all of this in just a period of two to four years. You might be thinking that is a long time, but remember that paying off a large debt otherwise can often take decades, if not a lifetime. Initial consultation and savings estimates are free, so you can get a good idea of what you are getting before you need to shell out even a single dollar. Even then, no upfront payment is necessary.

Qualification is easy, provided you have a minimum debt of $7,500 that belongs to one of the qualified types of debt.

National Debt Relief has been featured as a leading debt consolidation firm multiple times by Top Consumer Reviews, Top 10 Reviews, and Consumer Advocate. It has almost a perfect 5-star review on TrustPilot based on 32,000+ reviews and 4.6/5 stars on Google based on over 2,000 customer reviews. One customer, Amber P., writes, “It has been a lifesaver. We were drowning in CC debt and National Debt Relief had helped us. I am so glad I called.” Bobby A. says, “National Debt Relief helped me settle my debts that were choking me.”

With such fantastic customer reviews and services, National Debt Relief is a no-brainer solution if the unrelenting weight of debt is crushing your life. No longer do you have to lie sleepless at night wondering if your house will be repossessed or if your credit score tanked, hamstringing future financial prospects. In a nation falling increasingly in the jaws of debt, National Debt Relief is welcome salvation for many Americans.

Highlights

  • Reduces your debt by a maximum of 50% or 30% after fees.
  • Choose between debt consolidation and debt relief, each one with its unique pros and cons.
  • Get your debt consolidated even if it is as low as $7,500.
  • Be debt-free in as little as 12 to 48 months.

Pros

  • BBB rating of A+.
  • Accredited by the AFCC and AIPDA.
  • Choose between debt consolidation and debt settlement.
  • Free consultation and saving estimates.
  • No upfront enrollment.
  • 5-star review on Trustpilot and 4.6 on Google.
  • Consistently high rated by reputed media sources.

Cons

  • Must fall in one of the eligible debt types to qualify.
Courtesy of Credit Pros

#4. Citizens Debt Relief: Best for Fast & Consolidated Debt Relief

At our number four spot is New York-based firm Citizens Debt Relief. Despite being a new company established in 2017, AFCC and IAPDA already accredited Citizens Debt Relief. The company is also a certified primary member of the Consumer Debt Relief Initiative (CDRI) in 2021 and an authorized partner of Consumer Affairs. Citizens Debt Relief functions on the four pillar philosophies of diversity, transparency, respect, and integrity. It ensures each customer is given optimal attention, help, and a fair chance to clear their debt.

Initial consultation and getting a quote is free, and Citizens Debt Relief suggests to every customer a five-step system to a debt-free existence.

1. Enroll. This is as simple as calling them or signing up on their website. You will be assigned a free consultation to examine your finances and credit history to see if you qualify for debt consolidation. There are no upfront fees until your debt is successfully consolidated and reduced.

2. Payment Plan. Citizens Debt Relief will help you set up one monthly payment plan according to your current budget and earnings. This helps optimize the installments while slowly paying off your debts and still living a decent life.

3. Communication with Your Creditor. Citizens Debt Relief will tell your creditors they are handling your debt.

4. Debt Reduction. After you have built up a sufficient amount of money in your trust account, Citizens Debt Relief will contact your creditors and try to negotiate a reduction in your debt. The firm has a history of dealing with a 40-60% debt reduction, which is fantastic.

5. Be Debt Free. Citizens Debt Relief will then pay back your creditors from the money you put in the trust account. One by one, your debt will reduce over time, and Citizens Debt Relief will claim its fees.

That is how simple it is. However, one thing to note is that while you are actively working to pay off your debts, Citizens Debt Relief will freeze all of your credit cards to avoid further spending. This is to prevent your debts from becoming even higher and unviable with the current payment plan. Citizens Debt Relief says that under ideal circumstances, customers can usually pay off their debt in 12 to 48 months, depending on how high their debt is.

If you do not mind your credit cards getting frozen, Citizens Debt Relief is an excellent option for any American to slowly but surely settle your debt while still living a dignified life. Sadly, however, Citizens Debt Relief does not offer its services in all 50 U.S. states. So, it is prudent to check their website and see if you qualify before moving forward with an application.

Highlights

  • Reduces your debt by 40-60%.
  • Pay off all of your debts from a single monthly payment.
  • Easy to join and get a free quote.
  • No impact on your credit score.
  • Be debt-free in as little as 12 to 48 months.

Pros

  • Accredited by the AFCC and AIPDA.
  • Authorized partner of CDRI and Consumer Affairs.
  • Free consultation and saving estimates.
  • No upfront enrollment.

Cons

  • Does not provide service to all 50 U.S. states.
  • Your credit cards will get frozen while you pay off your debt.
Courtesy of Credit Pros

#5. DMB Financial: Best for Debt Settlement with Easy Repayment Terms

Last but certainly not least is DMB Financial’s debt consolidation services. Based in Massachusetts, DMB Financial is a proud member of the North Shore and Greater Beverly Chambers of Commerce. DMB Financial is also an AFCC as well as an IAPDA-certified firm. DMB understands that unsecured debts can be a significant burden, and repaying minimum amounts does not get you anywhere close to settling your debts. It can lead to a lifelong debt trap. So, the company offers affordable solutions to debt consolidation and easy loan repayment terms.

Signing up with DMB Financial is easy and free. All you have to do is contact them via their website, email, or phone. A DMB Financial consultant will get in touch with you and organize a free consultation where they will review your case and check if you qualify. If you do, they will advise you on a set course for debt repayment. DMB makes customized debt consolidation plans for each customer for all of their unique needs. This plan will ask you to pay a monthly amount to a savings account set up by DMB Financial. As you pay back your debts, the money will accumulate in that savings account from which they will be delivered to your creditors. DMB Financial will also talk to your creditors on your behalf and reach a debt settlement so you can have a significant debt reduction. It can help you save thousands of dollars.

DMB Financial has helped over 30,000 customers consolidate and settle over one billion dollars worth of debt. DMB Financial has a 5-star BBB customer rating for its exceptional track record and is ranked among Inc company profile 5000. Customer reviews have also been great. Tia P. from Texas says, “They do exactly what they say they’ll do. It does take time but I have no complaints so far.”

Highlights

  • Reduce your debt by 40-60%.
  • Pay off all of your debts from a single monthly payment.
  • Get a free consultation and plan.

Pros

  • Accredited by the AFCC and AIPDA.
  • 5-star BBB customer rating and member of Inc 5000.
  • Free consultation and planning.

Cons

  • Does not provide service to all 50 U.S. states.
  • No mention of an estimated amount of debt reduction you can anticipate or how much DMB charges you as fees.

How We Chose the Best Debt Settlement Companies

We virtually handpicked the five best debt consolidation companies from a confusing multitude, spending weeks studying every company in the business. We started our search for the best by probing into their reputation and standing in the business. The other points we looked into while choosing the best debt settlement companies were:

  • Their rate of success in consolidation and settlement of debts.
  • Their areas of specialization. By this, we mean what kind of debts the companies work with. We found most of these companies deal with credit card debts, and only a few among them also settle student loans, medical loans, and unpaid taxes.
  • We ensured the debt consolidation companies were certified by the National Foundation for Credit Counseling or the Financial Counseling Association of America.
  • We checked their reputation in the market, reliability, and fees for their services.
  • We read the reviews and ratings they received from their clients, which helped us immensely in making our selection. We selected the best based on the client reviews and ratings.

Our selection was shaped largely by the quality of service a debt consolidation company usually offers. Companies that provide average or poor services are not the kind of firms we wanted to recommend. And obviously, we did not consider such companies. We tried to fish out the best and most effective ones who could consolidate and settle all of your outstanding debts and confer a decent credit score of over 750 or more.

The five companies that finally met our criteria are the best we could find. They are reputable, reliable, effective, have all necessary certifications, are well-reviewed and well-rated, and charge a reasonable fee for their services.

The Guide to Finding the Right Debt Consolidation Loan & Settlement Company

In the period leading to the economic downturn of 2008, a lot of debt consolidation and settlement companies worsened an already deteriorating economy. The situation warranted the creation of the Consumer Financial Protection Bureau (CFPB) and a host of checks and balances to protect both the debtors and the creditors from the growing unethical business practices of many debt consolidations and debt settlement companies. The reforms CFPB brought in made the business of debt settlement more transparent and helpful to people in need of the services.

Still, unfortunately, not all of the players of this sector abide by the rules in words and spirit. Only a few do, and they are the companies you should approach to settle your financial burdens. The key, therefore, lies in finding the right and ethical company.

This section of the article is designed to guide you in finding the company you are searching for. Here are some of the points you must consider before hiring the services of any company.

Verify the Reputation of the Company

The best way perhaps is to approach the Consumer Financial Protection Bureau (CFPB) for this. Write to the agency and ask them if there has ever been any complaint against the company you want to work with to settle your outstanding debts. You can also write to your State Attorney General asking the same question about the company in question.

Read the reviews given by clients about the company on some reputable third-party websites, and you will find many clients talking about their experiences of working with the company. These reviews will enable you to form an idea about the company’s working modules, efficacy, transparency, and honesty.

Upfront Fees

In 2010, the Federal Trade Commission prohibited all debt consolidation and settlement companies from taking any upfront fee from clients and from giving consultation over the phone. These companies can charge a fee only after serving you. So, check out this matter before hiring any company or buying any service.

Check Out the Company’s Track Record and Experience

You must know the company’s track records and experience before you hire it for the settlement of your debts. Always opt for a company with a good track record of success, and the success of a company depends on the experience of its counselors.

Settlement Time

Debt consolidation and settlement cannot be done overnight. The process takes time but not years on end. Usually, the process takes 24 to 48 months, and a company that takes more than four years is inefficient and should not be considered.

Benefits You Can Derive from Debt Consolidation 

When you use your credit card balance to buy anything, like a new home or a new car or take a personal loan for education, you walk into the murky world of debt, which often spirals into an unmanageable proportion unless you know the secrets of handling them. Debt consolidation offers you a unique strategy that can make the management of all of your debts simple. In fact, debt consolidation can bring you a host of advantages, which include:

  • If you are using more than one credit card, you can turn multiple debts into one and make the servicing easy. This system or arrangement will lighten the weight on your shoulder and may also make you pay less. Debt consolidation will not wipe out any portion of your debt but will spare you from remembering all of those multiple payment dates. With all of your debts turned into one source, you can concentrate on one date.
  • Debt consolidation may allow you to pay less interest. Unsecured debts, incurred especially from using multiple credit cards, make your debt pile up. Consolidation of all debts can reduce your interest payment by 4 to 7%, and that is a big advantage of debt consolidation.
  • The method can even improve your credit score up to 827, which is excellent.
  • Consolidating all of your debts into one will lessen the stress on you. You will then be able to enjoy life better.
  • For many, paying out the dues incurred from using credit cards stretches for years on end. The creditors do not mind the repayment stretching endlessly as long as the debtor keeps paying the interest. For them, it is an earning. So, the consolidation of multiple debts into one helps the debtors to pay out the outstanding significantly quicker.

FAQs: Debt Consolidation Loans with Low Credit Score

Q. How do debt consolidation and settlement companies work?

The primary aim of debt consolidation companies is to save your money in servicing your debts. They do it by combining multiple debts into one so you do not have to remember so many dates. You can repay all of your debts by paying the monthly installment only once every month.

Most debt consolidation companies also sell debt settlement programs. These companies negotiate with the creditors and wipe out your debt by paying only a portion of what you owe. In this process, you end up paying less, saving at least 30%.

Q Are the services of debt consolidation and debt settlement companies expensive?

Debt consolidation and settlement programs can be expensive if you, by mistake, walk into the traps of some shady companies. But, if you work with good and reputable companies, you can go through your journey to freedom from debts with a happy memory and a cherishing experience.

Usually, reputable companies are honest, and their business policies are transparent. Their service fee usually ranges between 18 and 25% of your enrolled debt. Even after paying the service fee, you will save a substantial amount of money after the consolidation and settlement of your debts.

But, buying the services of debt consolidation and settlement companies can be expensive if you work with small and lesser-known shady companies. Such firms will fleece you and will make you spend more for many of their hidden charges. So, beware of such companies and work with reputable firms only.

Q. Do debt consolidation programs affect the credit scores of individuals?

No, working with debt consolidation and settlement firms will not affect your credit score or lower it if you buy the services of a reputable establishment. Creditable firms do not resort to any dubious methods to consolidate and settle the debts of their clients, as their mode of function is transparent and legal. Working with them, on the contrary, may jack up your credit scores and reinforce your credibility. This, however, may not happen if you work with a questionable company.

Q. What are debt consolidation and debt settlement?

Debt consolidation and debt settlement are the two sides of the same coin. They are programs designed to help individuals and companies come out of their debts through honorable negotiation. Debt consolidation is a program designed to combine multiple debts, primarily incurred using more than one credit card.

Debt settlement is also a financial program designed to wipe off or settle outstanding debts by paying out a portion of the loan amount still owed by the debtors.

Both debt consolidation and debt settlement programs aim to save the debtors money and make repayment more manageable.

Q. Are there any alternatives to debt consolidation and debt settlement?

Technically, there is an alternative available. You can declare yourself bankrupt. The creditors can confiscate your assets, liquidate them, and distribute the cash among themselves. Declaration of bankruptcy is legal and will provide you immunity from lawsuits and those irritating collection calls.

Declaring yourself bankrupt may not always be a good option and never to most people. It may affect your credit scores, which will remain on record for at least ten years. Moreover, if you take this drastic step, you may have to begin your life all over again from scratch, as you may have to wash your hands of all of your assets and properties.

Q. Who should avail of the services offered by debt consolidation and settlement companies?

The answer is simple. Obviously, people who are into debts and have exhausted all means of repayment or settling their outstanding are the ones who would avail of the services offered by debt consolidation and settlement companies. You may have been regular in servicing your debts initially, but, with time and under some compelling situations, your regularity might have taken a beating. Personal loans may have assumed humongous proportions, and repayment has become a challenge. It is then you may need to avail of the services of debt consolidation and settlement companies.

Conclusion

Can there be anything more blissful and joyous than a life free of debts? We guess not. You, too, can have a debt-free life if you can simply change the way you look at money and use it. There are hundreds and thousands of families like Eric’s. His family is debt-free now but was not five years ago. He, too, was in deep debt but paid off $200,000 because he worked with a debt consolidation company. The company showed him an alternative way to live and changed how he looked at the money earlier.

To enjoy a life free of debts, you need to make a studied decision, walk into the office of a good debt consolidation company, and follow the experts’ advice to go through the journey to become 100% debt-free. And, in four or five years, you can enjoy the life Eric is now experiencing.

The five companies we have mentioned and reviewed in this article are the most qualified we found to become partners in your journey to a debt-free life. You can avail of the services of any one of the companies we have listed. They will take you out of your debts and help you regain control over your money, help to build wealth, and gain back the confidence you may have lost.



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How to apply for a Consolidation Loan for Paying Off the debt with low credit https://top100programs.com/how-to-apply-for-a-consolidation-loan-for-paying-off-the-debt-with-low-credit/ Thu, 03 Mar 2022 10:43:45 +0000 https://top100programs.com/?p=820 The idea of debt consolidation is explained as a way of managing debt that permits the consolidation of several debts into one payment. A single account could be easier to manage. Additionally, in the event that you are subject to greater interest rates because of financial or credit card debt, one account can help reduce your cost […]]]>

The idea of debt consolidation is explained as a way of managing debt that permits the consolidation of several debts into one payment. A single account could be easier to manage. Additionally, in the event that you are subject to greater interest rates because of financial or credit card debt, one account can help reduce your cost for taking out loans.

This Debt Help reports says, a most widely-known method to consolidate debt is to take out an unsecure debt consolidation loan. This is personal loans that are used to pay off more than one creditors. Although it isn’t easy to obtain this kind of loan with bad credit, there are plenty of alternatives to improve your chances of being approved for loan with credit. There are various other options to think about.

The advantages of a credit card that is not secured to consolidate debt

An individual could be eligible for the consolidation loan as due to a variety of factors. The most important advantages of a debt consolidation loan include:

  • Basic financing A credit card used for debt consolidation transforms several monthly installments into one. With only one lender and an annual bill to consider it allows you to make payments more frequently and avoid insufficient payments that may affect the credit rating.
  • Lower interest: It’s generally only recommended to obtain the installment loans to pay off debt when you can get the highest rates of interest for what you’re paying for current loans. If you’re paying between 16 and 20 percent on a credit cards and you’re in a position to get an installment loan with APR of 14 percent , you’ll save money in the final.
  • Fixed payment: Many credit cards for debt consolidation have fixed interest rates and an agreed upon period of repayment. This means that the monthly amount is the same every month. This isn’t true for regular installments on credit cards.

How do you be considered in a loan installment in order to help pay debt

Each lender has its specific criteria for those who are seeking consolidation loans. However, every lender will assess your credit score’s earnings, debt-to-income ratio, as well as the proportion to decide the probability to repay the loan. In most cases you’ll require a an average credit score of at least 600, however, there are some lenders that concentrate on the relief of debt for people with poor credit available and may accept credit scores of 600 or even lower. Be aware that the lower your credit score more expensive are the prices of interest.

Four steps to follow in order to get the loan needed to consolidate debts for people with bad credit

When you’re trying to pay off the debt you’re owed and think it’s possible to obtain an installment loan to aid you pay off your debt, you’ll need an credit score of at least around the mid-600s, an established track record of punctual payments, and an income to be taken into consideration. However, each lender has its specific set of requirements. Begin by following these steps to help you in locating the ideal personal loan that will help you consolidate the burden of debt and increase your chances of getting approval.

1. Be sure to monitor your score credit

The lender’s loan decision is based on your credit score. The less your credit score is, the more interest rates that lenders will allow the possibility of financing. If you’d like to get an installment loan in order to pay off debt, you need to meet the minimum requirements of the lender. The most common range is between the 600s and the middle, though some bad-credit lenders will take scores that are as low as 580.

A lot of banks offer tools that help you monitor and keep track of the credit scores of your clients. Once you know your credit score, it is easy to know which lenders will likely to cooperate along with the one you have. There are companies that specialize in lending to people with low credit scores however, many of them require guidelines for determining credit scores through their website.

Summary: Speak to your credit card or bank firm to see if they provide tools that allow you to examine your credit score without cost .

2. Shop all around

It is not recommended to take the first loan you receive. Instead, conduct your own study and then compare loan amounts, repayment terms and charges from a variety of sources, such as local banks, banks across the United States and credit unions as well as online-based lender. This can take some time, but it can make you save hundreds and necessarily paying thousands of dollars.

The best method to start is to look into online lenders since you can assess the rates of interest charged by your lenders by conducting a quick credit check that doesn’t change the credit scores. However, you should look at offers from your credit union or bank. If you’ve made relationships with institutions like bank or credit unions they could be more likely to overlook credit scores that are below the average.

The following information should be taken to your heart: Go over your options for loans with a range of lenders in order to choose the most suitable option for credit consolidation that best suits your requirements. Visit each lender’s website to find out more about their offerings and eligibility requirements.

3. Take a look at the secured loan

Personal loan for consolidating debt is typically not secure because they don’t require security of collateral. If you’re trying to obtain approval for an affordable credit consolidation that does not require collateral however, a secured loan might be worth looking into.

Secured loans need collateral like an automobile, as well as an asset like a home or another. The collateral must be large enough to pay for the loan in the event of borrower is in financial trouble. This is the reason why it’s usually easier to get secured loans than those that aren’t secured and may result in the most affordable rates of interest.

Lesson:To increase your loan approval rate and increase the likelihood of obtaining a lower interest rate, look on secured loans for personal.

4. Be patient for some time in order to improve your credit

In the event that you’ve tried all possibilities, you’re unable to locate the option that can assist you in saving money , it is possible to wait some time for a time for you to improve your credit score.

It’s the goal of your plan for you to settle your debts at the same date each month over a period of a few months. It’s recommended to concentrate on paying off the amount on your credit card, and then eliminating the unnecessary expenses for your monthly budget like subscriptions or eating out frequently.

“Make an immediate plan to make sure that you’re paying your debts every months,” says Steve Sexton Sexton Advisory Group’s CEO. Sexton Advisory Group. “Once you’ve made some progress over some time, you’re ready, request your credit union or bank to look over your progress and request an unsecured loan to consolidate. It is easier to get the loan via banks or credit unions compared against. One of the lenders online because they can prove that you’ve taken the required steps to settle your debt, and resolve the problem. “

It’s also a good idea to get a copy of your three credit reports, which you can do for free once a year — or weekly through April 2022 through AnnualCreditReport.com — and check for errors. If you spot any, you may dispute them through any of the credit agencies: Equifax, Experian and TransUnion.

Description: In order to improve your chances of getting lower interest rates Take these measures in order to improve your credit score: Be punctual in your payment and get rid of any credit card debt as soon as quickly as you can. After that, go through the credit report for any mistakes.

How can I obtain an unsecured consolid credit loan with bad credit

With all the loans accessible, it’s often difficult to choose the right location to start. Here are some great places to begin your look.

Credit unions as well as locally-owned banks

Credit unions and local banks generally take a look at the credit rating of your applicant when you are applying for a loan on your own, just similar to other lenders. But these local banks might give the borrower more flexibility in the event that their credit score isn’t great particularly if they’ve developed an excellent relationship with the bank.

If you’re able to prove that you’re a member of a local bank or account-holder in a credit union, it is possible to speak to an agent about loans to find out if you’re qualified for personal loans and also what terms and conditions apply if you’re qualified. The lending institution might look beyond your credit score and consider your financial history and also your personal circumstances and relationships to the bank or credit union.

Online lending

Internet-based lenders could be an excellent option to find credit consolidation loans when you have poor credit as they can better approve loans for those with poor credit than brick and mortar establishments.

If you’re an online loanprovider, you can:

  • rate comparisons which don’t affect your credit score.
  • Apply quickly and easy without trouble or requirement to visit the place directly.
  • Earn money over the course of a week or in just one full day.

“Most institutions which are online offer greater flexibility in providing these kinds of loan” Ash Exantus is the director of the Department of Financial Education of BankMobile the bank which operates through the web.

The reality is, online lending institutions typically offer high APRs for bad credit loans in order to fund the goal of reducing debt. Also, be aware of origination costs which can increase the amount of the loan, and limit the amount you can borrow.

Particularly, when you’re considering lenders online that provide consolidating credit, it’s crucial to determine if the business you’re studying lends directly or lends to third party lenders, Sexton states. “Working in conjunction with an external lender can result in more costs and fees so it is best to choose direct lending in order to avoid any costs. “

Are you thinking about applying for loans as well as consolidating loans for the purpose of improve your credit Here are some lenders to consider:

  • LendingClub is not require any additional credit score, however, it does allow borrowing with lenders who are co-borrowers. The APR is between 7.04 percent to 35.89 percent for loans that are used to consolidate debt. The range is between $1000 and the amount of $40,000.
  • Upstart does not have any minimum credit score requirements. The borrowers who meet the requirements can qualify for loans of up to $50,000 and an APR of 3.09 percent up to 35.99 percentage.
  • Avant doesn’t provide a minimal rating for your credit. The company declares that over 95% customers who seek loans have a score of 600. If you’re approved for credit, you could be eligible for a loan between $2000 to $35,000, and an APR that is between 9.95 percent to 35.99 percent.
  • OneMain Financial doesn’t specify a minimum credit score on their website, however they do have a experience working with people who have fair or poor credit. The APR range for loans available for debt consolidation with OneMain Financial is 18 percent to 35.99 percent. Customers can be eligible to receive loans of up to 1500 to up to $20,000.

One of the most efficient bad credit loan option in order to pay off debt

Lender Minimum credit score APR-based range
LendingClub Not stated 7.04%-35.89%
Upstart No minimum requirement 3.09%-35.99%
Avant Around 600 9.95%-35.99%
OneMain Financial Unspecified 18%-35.99%

What is the way to do with the debt consolidation loan you owe?

When you’ve received the money from your debt consolidation loan, it’s important to manage your money in a responsible manner. Here are some tips you can repay the loan without accumulating additional loan.

Create an annual budget

When you’ve been approved to take out a loan , you have to create an overview of your financial plan that outlines the way you’ll repay the loan on a monthly basis. You must also ensure that you’re able to cover the loan in full.

“Know in advance the amount you’ll be required to pay every month. ” Exantus recommends. “If the amount you’ll have to cover isn’t aligned with your budget, then it’s not the best choice to take the consolidation of a loan. “

You may also reduce your spending on purchases that aren’t required to ensure you have enough money to cover the loan each months.

All outstanding debts are been paid complete and in the due date.

When you’ve received your money which comes from the consolidation loan, transfer it to your account. It is the first thing to do pay off all your financial obligations.

“Some individuals will be able to access the cash and use it for other reasons or fail to pay back the whole sum,” states James Lambridis Director of DebtMD. “This can lead to more financial trouble. “

Automate payments

After you’ve secured the loan, you must consolidate your debt. Consider whether your lender allows auto-pay. Some offer a few and some offer discounts when you select your autopay preference. It’s an excellent option to cut down on the expense of interest rates when you’re a credit breaker that has led to excessive costs. Additionally, it helps in maintaining your financial course. This is especially important when it comes to your credit score since paying your bills on time on your credit score is among the most efficient methods to increase the credit score you are able to achieve.

Find an answer to any problem in relation to spending

Then you’ll be able to spot and address any financial problems you might have. If you don’t address the financial issues that led to the problem at the beginning, you could get back into debt, Sexton recommends.

Also, it’s important to ensure that you don’t pull out your credit card when they’re cleared as it’s not a good idea to end up in the same spot.

Alternatives to a debt consolidation loan

The option of debt consolidation might not be the most appropriate option for all. If you’re not eligible for a consolidation with less than the current one it could be beneficial to consider different alternatives.

Do-it-yourself fixes

There is many options to change your financial plan without needing to work with third-party companies. To start borrowing, it’s an option to

  • Check the budget you’ve set. Examine the costs you’re paying on your earnings and pinpoint the areas where you can reduce costs and make more money to pay back the loan.
  • Examine the conditions of your loan. If you’re struggling to make the minimum monthly payments Your lender may be willing to lower the rate of interest or offer assistance to the contrary.
  • Make changes to the due date. It is possible to plan the dates you must meet all due dates at once. Although this isn’t as effective as consolidating debt , it can help you manage your debts more effectively.

Debt management plan (DMP)

National Foundation for Credit Counseling (NFCC) is an independent financial counseling company with members across the nation which provide debt management programs (DMPs).

In the sense that DMPs are a different kind of debt consolidation intended for those who have weak credit. In the DMP program, you pay each month a one-time payment to the company that will cover multiple expenses in the course of the month.

The agency , then will then pay the creditor directly through your account (generally at a cheaper cost). Most debt management programs take between 3 and 5 years to end.

However this technique generally results in a note on your credit report that you’re on debt management programs. While the note will not affect your credit score, prospective lenders might be reluctant to offer any loan.

Home equity

In the event that you have an asset that you own and an amount of equity You may be eligible to use the equity of your house to reduce your debt that you are carrying. The mortgage of your home isn’t a loan to consolidate loans, however it may allow you to take advantage of lower interest rates since it is secured with the house.

Take note that, even though you’ve got equity in your home this could allow you to obtain financing and may assist you in obtaining lower interest rates. However, there is the possibility that it could lead to. If you’re in a position to not pay the monthly bills and you don’t have enough cash to pay the expense, you may be forced to sell your house in the process of foreclosure. It’s best to consider this option only if you’re certain that you’ll be able to repay your loan.

strategies to use the equity in the home you live in to fund financing:

  • Equity loans for home owners. Sometimes referred to as a second mortgage, or credit to the equity of the house The house equity loan can be described as a lump sum fixed-rate, fixed-rate loan which allows homeowners to manage the equity they have in their homes to secure the collateral.
  • Home equity lines of credit (HELOC). A HELOC is a different kind of finance that is backed by the value that your house is worth. Instead of paying an amount of money in one payment and having an interest rate that is fixed, you can apply for the same credit line to a credit card. It allows you to access cash at any time you require it up to a maximum amount of borrowing. Once you’ve paid of your balance you’ll be able to take the entire amount at a later date.
  • A refinance that cash-out. In a refinance, you are able to cash out when you get an additional mortgage which is greater than the amount you are required to pay for your house. Then, you can make use of the rest of the money in order to repay the loan.

What do you do if you are in a difficult situation?

The debt consolidation loans and the other alternatives that were mentioned earlier are suitable for people who qualify to receive a rate of interest which will be lower. If you’re struggling with debt and are unable to afford your monthly installment, it may be a good idea to look into debt counseling and bankruptcy, or debt resolution.

Although they’re far from optimal, they do help.

Credit counseling

Credit counseling company could be as a the mediator between lenders and customers. A credit counselor will help you understand the contents of your credit report and suggest steps to improve your credit score and reach the financial objectives you have set. Some credit counseling companies offer a limited selection of services absolutely free.

When you’re having difficulty managing your credit score, debt counseling could assist you in creating the right debt management plan. Credit counseling firms usually deal with banks that offer low rates of interest than those are currently being paid.

Debt settlement

Settlement of debt is a step further than managing your debt. Companies that provide debt settlement services like National Debt Relief and Freedom Debt Relief will assist you to settle your debts at a lower cost than what you are required to be paying.

The problem is that you’ll usually need to fund your bank account with the debt settlement firm before they begin negotiations with your creditors. It is generally at the expense paying your monthly bills and can lead to your debt going in default.

In the event that you fail to pay your debts on in time, it will affect your credit score even more. It could take many years to correct.

There are a variety of advantages to take into account when paying off debts, Exantus says. “If your credit score is a mess and you’ve made the decision to let the credit go unpaid, this should not be considered to be an issue since, in the end, it could let you save money as you’ll end up making a larger payment to your bank that you initially paid , in the event that the firm who consolidates debt didn’t take action. “

Keep in mind that reaching the desired goal of having the credit card having a zero balance will not result in payment that is due or other negative marks to be removed off the credit report. The credit card debt will remain on the balance of negatives report on the credit report for up to seven years after the date it’s declared in insolvency (though it will impact your credit score lesser, and will decrease in time).

The solutions to debt settlement are often charged fees, often regardless of whether or not the company is able to negotiate successfully to reduce the amount of debt.

Bankruptcy

When you’re facing financial difficulties and debt settlement isn’t likely, bankruptcy could be the only alternative. Based on the type of bankruptcy is filed, you might be required to place your assets under the watchful eye of the bankruptcy court . You will accept that the most significant portion of your assets be surrendered or even all of your belongings.

Be sure that you’re aware that bankruptcy won’t erase debts , such as the need to pay for student loans as well as the child support debt. It will also be on your credit report for up to seven to 10 years. This means that it could take years before being eligible to various kinds of credit.

In the final analysis, filing for bankruptcy may provide you with another chance for improvement in your financial position. If you persevere and remain focused, your credit score will rise.

When you’re thinking of filing bankruptcy, talk to an attorney that is trained in bankruptcy and can provide advice on the most suitable method to take.

Do not lend to lenders who have a tendency to be prey

In the event that you’re contemplating the possibility of getting the loan to consolidate debt it is important to know that certain lenders may be insecure. This is especially the case for lenders who deal with people with low credit scores. They usually offer high interest rates and with costs.

Internet-based companies such as OppLoans such as OppLoans, for example provide three-digit rates on APR. However, they’re close to the same price as payday loan companies with rates which range between 1251.43 percent to 1251.43 percent.

A loan with this type of interest is costly and can lead you to fall further into the financial burden. Furthermore, lenders that are predatory do not fulfill the goal of the credit consolidation loan, which is to reduce credit card.

“Sometimes it’s difficult to recognize the lenders that are predatory when it comes to an unsecured consolidation loan particularly in cases where you’re not creditworthy.” Exantus says. “Anybody who promises to give you something might appear successful. It is essential to understand the small print. Don’t sign any contract without knowing the terms of the contract, and the fees you’ll be to pay. “

The word “predatory loan” refers to loans that favor the lender, but at the expense to the borrower Sexton declares. The warning indications include:

  • A rate for interest for your score on credit is thought to be too unbelievable to be true.
  • This lending institution is is urging to get your act in order.
  • An institution that is trying to convince you to take out the most expensive or risky credit.
  • This lender wants to convince you to provide truthful information in your application.
  • The fee or terms are subject to change during the date of the closing.

The most important element is the final result

Whichever route you decide to use to get rid of debt, it is essential to figure out the best way to accomplish your goal. It’s sad to not be finding a suitable credit card to pay off debt or you’re currently making bankruptcy filings or paying off your debts. However, don’t let your discouragement deter you from making a decision. If you can avoid becoming a victim of collection make sure you do it.

Remember that using a credit card to consolidate debt isn’t an option for a long time. They don’t solve the issue of the main reason for you to be in debt at all in the first place. If you choose to use an installment loan to consolidate debt, make sure that you take other steps to ensure financial stability, such as setting up your budget and reducing your expenditures, and seeking opportunities to earn money. It is important to ensure that balances on accounts after they have closed and paid off.

Be cautious about applying for any loan you’re eligible for to pay off debt as quickly as feasible. A loan that has a high rate of interest to repay debts can allow you to switch one issue for the next.

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Best Debt Consolidation Loans For With Bad Credit [2022 Update] – Blog https://top100programs.com/best-debt-consolidation-loans-for-with-bad-credit-2022-update-blog/ Thu, 03 Mar 2022 10:43:37 +0000 https://top100programs.com/?p=817 In today’s busy world, you need to make things as easy as you possibly can. One way to do that is by using debt consolidation to manage your outstanding monthly payments. You can pay everything off in one easy payment each month, making it easier to settle your outstanding balances and keep track of your […]]]>



In today’s busy world, you need to make things as easy as you possibly can. One way to do that is by using debt consolidation to manage your outstanding monthly payments. You can pay everything off in one easy payment each month, making it easier to settle your outstanding balances and keep track of your multiple debts.

Some people may do this using the best debt consolidation loans, which is what we are going to discuss in this article. The benefits of this approach are outstanding. For example, you may be able to take advantage of a lower interest rate on your debt consolidation loans. So, let us learn more about the best services to consider for debt consolidation.

Our Picks of the Best Debt Consolidation Loan Services of September 2021

  1. MoneyMutual – Overall Best Debt Consolidation Loan Services 
  2. BadCreditLoans – Best Bad Credit Loans 
  3. CashUSA – Instant Approval For Cash Advance 
  4. PersonalLoans – Low Credit Score For Personal Loans

#1. MoneyMutual: Short-Term Cash Advance

 

Our first service is an extensive network of lenders that specialize in short-term loans. Here, you will find over 60 lenders that can help with loans, whether your goal is debt consolidation or just to get some extra money for an expense.

You begin by going to their site and filling out the pre-qualifier questionnaire. Then, lenders that are capable of lending to you will contact you, with no regard to your credit score.

Overall, this site allows you to connect with lenders to obtain the financial assistance you need. The best part is you can get access to your funds, after approval, in as little as one business day.

This company is legitimate, and you will feel confident in working with them. They first opened their doors in 2010, and their mission is to get Americans the money they need with as little stress as possible.

They act as a middleman of sorts — they gather your information and send it out to a huge lending network, who then come to you with debt consolidation loan offers and interest rates. Best of all, everything is done online, so you can easily do it from the comfort of your home.

After you have chosen the loan that makes sense for you, you will carefully go over the Terms & Conditions. Then, you will accept the loan funds if it is suitable for your needs.

The payment loan amount, interest rates, and loan terms are all specific to your lender, not the MoneyMutual network itself. So, make sure you read them thoroughly and carefully before you agree to anything.

Features

Users of the MoneyMutual network love the site for its clean design and user-friendly interface, but that is just one of the many features this site offers.

Here are some of the best features of MoneyMutual: 

  • Short-term loans up to $5,000
  • Funds deposited in 24 hours or less
  • Easily compare terms, rates, and amounts from many lenders in one place
  • Over two million satisfied clients and counting
  • Pre-qualifying form takes only five minutes to fill out

You are also going to love the many loan types MoneyMutual offers. We know you are here because you want the best debt consolidation loans, but knowing what they offer could help you in the future. The loan types include:

  • Installment Loans: This is what many of you will be applying for when it comes to debt consolidation loans. You will pay this back on a scheduled day every month, and they are great if you have a steady income, such as from employment or government benefits, a pension, or self-employment. Read over the terms with care, and make sure you are aware of any interest payments you will have to make based upon the loan’s repayment dates.
  • Bad Credit Loans: If you have a bad credit score, but you need a debt consolidation loan, MoneyMutual may be able to help. They look at factors other than your credit score to determine if you are eligible. Of course, you will be paying higher interest rates, but as long as you are employed, you will have an easier time getting a loan with MoneyMutual.
  • Cash Advances: Cash advances are for when electronic payments are not accepted to fulfill a debt. We generally advise staying away from these unless the need is dire, as the interest rates and fees are astronomical.
  • Payday Loans: These short-term loans are designed to help you make it to your next payday and are good if you need a bit of extra money for an unexpected expense. These are usually required to be paid upon receiving your next paycheck, so be prepared to authorize the lender to debit your account on its due date.

These loans are high-interest and loaded with fees. So, make sure paying off this debt will not be an issue when it comes due. Otherwise, you could get trapped in a cycle of debt.

Pros

  • Free service
  • Fast and easy approval
  • Funds transferred directly to your bank account within 24 hours
  • Educational resources available on the website

Cons

  • Not all loan services are available in every state/territory of the U.S.
  • Often comes with high interest

Customer Experience 

From reading customer reviews, we found an overwhelmingly positive response to MoneyMutual’s services. One user described this platform as a “lifesaver” when he was in dire need of quick funds. In addition, customers loved the ability to obtain a loan despite having a bad credit score. Overall, users have been satisfied with the services provided by MoneyMutual, as it has assisted many in overcoming their financial woes.

=> Click here to visit the official website of MoneyMutual 

#2. BadCreditLoans – Best Bad Credit Loans

BadCreditLoans says, “we can help when others can’t.” This is very encouraging if you need some financial help in the form of a loan but do not know where to turn. This platform is designed for people who do not have very good credit or have no credit at all. Those who have struggled in the past can rebuild and get a second chance with these small loans, as they can be a great way to improve your credit score.

These loans can be used for many things; however, you should only use them for necessary expenses, such as medical bills or, in this case, consolidation of debt. Moreover, BadCreditLoans is a lot like MoneyMutual in that it is a marketplace of lenders.

The loans offered are not directly from BadCreditLoans. Instead, it connects you to a massive network of lenders, and they send you offers to consider. You simply have to complete the pre-qualifying application to see what lenders are available to you.

However, be sure to approach these loans with care. The interest rates on bad credit loans are higher, and fees could be bigger than those for people with good or fair credit scores. Plus, these loan amounts are not as high as other lenders. But, if you want to consolidate your debt relief and your credit score is not great, this organization is going to be your best bet.

They have been in business since 1998 and are a legitimate business, and they even offer tribal lending on top of traditional loans.

However, tribal loans are also high-risk because they follow tribal laws set forth by Native American loan companies operating on tribally owned land instead of federal laws that virtually all lenders need to follow. So, make sure you read the terms carefully if you opt to go this route.

Features

Here are a few of the great features we noted while using BadCreditLoans.

  • Loans available in amounts from $500 to $10,000
  • Quick approval and funding
  • Simple and quick application process
  • Money reaches your account the next business day
  • Compare offers from several lenders

We also took note of the site’s Education Center. This is where you go if you do not know anything about loans, as they talk about the myriad of loans consumers can apply for, such as auto, student, and business, among others. In addition, they discuss loan scams, which everyone should be informed about, especially if you have a poor credit score. Also, you can contact them using the number on their website for further guidance, and we loved how easy the company made it to speak to them.

It is also worth noting the customer service reps are quite helpful and knowledgeable about the site. However, queries about your loan have to go to the lender providing that loan, not BadCreditLoans.

The main offering of BadCreditLoans is personal debt consolidation loans, and they take care not to put those with poor credit scores in a bad spot. For example, we noted that someone with a FICO score of 500 or less would not be loaned more than $1,000.

And, with personal debt consolidation loans, you can use them for any reason at all. However, you should not get tempted to use your loan on anything except debt consolidation.

To qualify for a loan, you must:

  • Be 18 years old
  • Have a valid email
  • Provide documentation that you are a U.S. citizen
  • Provide work and home phone numbers
  • Have a checking account in your name
  • Have proof of regular income, whether it is a government benefit, such as disability/Social Security, self-employment, or full-time employment

Another thing we love about using BadCreditLoans is how short the process of getting your debt consolidation loan is, as it can be broken down into four easy steps.

Step 1: You will start by filling out a request form that indicates your interest in taking out a loan. Here, you will share your birth date, the reason for the loan, and your credit score. You will also provide banking and employment information, as well as phone numbers for your work and home.

Step 2: You will carefully review the offers lenders have sent to you. Make sure to take your time and read the terms carefully. Do not be afraid to ask questions before you sign.

Step 3: You will accept the debt consolidation loan after carefully reading it over, and you will then sign with an e-signature, indicating you understand the loan agreement terms and you agree to pay it back.

Step 4: You will get your money in just one business day, and from there, you can use it to consolidate your debt into one simple payment.

Pros

  • Compare multiple lenders at once
  • Free service
  • Multiple contact methods
  • May help you build your credit
  • Provides quick loans for those with poor credit

Cons

  • Loans are small, especially for those with poor credit
  • Marketing messages may be sent to you
  • High interest rates

Customer Experience

Customers have raved about the service provided by BadCreditLoans, stating their appreciation for the ability to receive a loan quickly even with a bad credit score. Moreover, users like that they feel confident providing their personal information, as this platform values and protects user data, thus ensuring privacy.

In addition, customers have reported the site is very user-friendly and professional, and the platform clearly explains each step of the process of obtaining a loan. This provides customers with a seamless experience in times of financial need.

=> Click here to visit the official website of BadCreditLoans

#3. CashUSA – Instant Approval For Cash Advance

With CashUSA, you simply have to submit a short application, and then let them do the rest. If you qualify for a loan, lenders will then flock to you in a matter of minutes and bring offers with them based on the info you entered.

Once again, CashUSA is another loan marketplace with a network of lenders coming together to provide people who need to borrow money many options. Just like MoneyMutual, it is good to think of this as a “go-between,” as they bring forth all of the loans.

In addition, we discovered no credit score checks are performed on borrowers with CashUSA. This is ideal if you have a poor credit score, but bear in mind higher interest charges and service fees are inevitable if you go with this company.

Loans start at $500 and cap off at $10,000, and interest starts at 5.99% and stops at 35.99%. Also, remember that CashUSA is not a loan provider or servicer. Therefore, you will have to contact your loan company directly to ask them any questions/address any concerns you may have about the loan.

Features

Like the other sites in this article, CashUSA has some pretty nice features, including:

  • Loans offered from $500 to $10,000
  • Quick approval
  • Funds deposited directly into your bank account
  • Loans can be used for anything
  • Bad or no credit holders accepted

There are many lenders working for you, and this is possibly the best feature of them all. It is easy to cast a wide net and see what offers are available, which is much easier than calling a dozen or so places and having to write down all of that information. They will also only direct you to lenders that are approved to do business in your state.

Another great feature is the ease of the process from start to finish. You start by filling out a quick form, which just asks for basic info, such as zip code, birth year, and SSN’s last four digits. Then, you complete the full form, which asks for more information, such as name and email, employer info, military status, income, and financial institution information.

Once that is complete, you submit the form, and then the offers start rolling in. Once you have found a loan that makes sense to you, simply click on it, and review the contract closely. If you decide it is suitable for you, you will provide whatever info that particular lender needs, receive your funds the next day, and start repaying the loan.

Another thing we liked is that this platform is completely free to use. Therefore, you do not need to pay anything to use the CashUSA network of lenders. There will be no extra fees tacked onto your loan agreement, nor do you have to enter a credit card number to use the site.

Another interesting feature is the loan amounts. This network offers lower loan amounts than other companies we have reviewed, presumably because they accept borrowers with bad or no credit.

However, loans only go up to $10,000, and the maximum term for a loan is six years. This is for those with both good credit and bad credit. While a smaller loan means it is easier to pay back, it may not be enough for debt consolidation loans.

Next, you will find that just about everyone is capable of being qualified. There are so many lenders working with the CashUSA network that you are almost guaranteed to be approved. However, there are some basic eligibility requirements you will have to meet, including:

  • Must be at least 18 years old
  • Must have a checking account in your name
  • Must have an email address and phone number
  • Must have at least $1,000 in monthly income
  • Must be a citizen or permanent resident of the U.S.

Next, we liked that the loan is free to be used for any purpose. However, if you are taking out a loan with the help of CashUSA or any of our featured lending networks, make sure it is for a good reason. Remember, you are here because you want to consolidate your debt, not add to it.

Therefore, you should not use these loans for frivolous reasons, such as taking a vacation or buying things you do not truly need. You should also look for other ways to get money before taking a loan out, such as working extra hours or finding a side gig.

However, you are free to use the loan as you like, and it is great if you need something that banks do not typically finance, such as purchasing new furniture or costs associated with moving.

Next, we liked that CashUSA makes repayment easy, as it is a breeze to repay the money you have borrowed using the lender’s automatic withdrawal method.

You simply enter the details of your bank account, which is how your funds get deposited. This may also be used for autopay, and the funds will be withdrawn automatically. So, you never have to miss a payment, and you ensure the loan is repaid on time.

Pros

  • No minimum credit score required
  • Free service
  • Safe, secure, and convenient site

Cons

  • Minimum income of $1,000 to qualify
  • Interest rates tend to be high

Customer Experience 

With CashUSA, customer reviews revealed an appreciation for their excellent customer service. Users have stated their experience with customer support revealed the representatives were professional, attentive, honest, and took the time to make sure they understood every part of the process. Moreover, they liked that the customer support staff  were readily available to answer any questions or concerns in a timely manner.

=> Click here to visit the official website of CashUSA

#4. Personal Loans – Low Interest Rates For Personal Loans 

Our final lending network is Personal Loans. Like the other networks, they match borrowers who need money to lenders that will approve them.

They are headquartered in Utah and provide loans to those with fair to excellent scores. However, if you have a bad credit score, we encourage you to look elsewhere.

They also require you to have no accounts over 60 days late, no recent or active bankruptcies, and no credit history of late fee payments.

Features

Personal Loans is a free service, and for that, we are grateful. After all, you are going to be paying interest and other fees associated with getting a loan, so getting something for free helps out.

The rates are fair, too. This company caters to people with fair to excellent credit scores, so the rates tend to reflect that.

Furthermore, the loans can be used for any reason. Whether your goal is debt consolidation or something else, you can use the loan for it. As we have said before, however, only use it for things you need, not things you simply want.

Funding also happens fast, as you will get your money by the next business day. Then, they deposit it directly into your bank account.

Lastly, we loved the customer service. If you have any concerns or queries about the Personal Loans service, you can contact them using their email or phone number. Customer service reps are available Monday to Friday from 6 AM to 7 PM, Pacific Time.

Remember, though, they cannot answer questions about your specific loan, but they can answer any questions you have about the site itself.

There are a few requirements you have to meet if you want a debt consolidation loan with Personal Loans, including:

  • Having proof of income, whether it is full-time employment, Social Security or disability payments, or self-employment
  • Being 18 years or older
  • Having a valid Social Security number
  • Being a U.S. resident or permanent citizen
  • Having checking account in your name
  • Having a fair to excellent credit score, no recent charged-off accounts, and no recent/active bankruptcies

Pros

  • Loan terms from 3-72 months
  • Great interest rates, especially if you have a good credit score
  • Loans up to $35,000
  • Extensive lending network accessible
  • Works with actual credit unions/banks to provide loans

Cons

  • Not available to bad credit holders

Customer Experience 

Overall, customers have been satisfied with the service provided by Personal Loans. They have stated they received an excellent and competitive APR, and they received their funds directly in their bank account within 24 hours, making this platform perfect for anyone in rapid need of cash.

Moreover, customers were happy with the easy to use website and simple application process. From applying and being approved to browsing through lenders, accepting an offer, and receiving their funds, users have had a seamless experience with Personal Loans.

=> Click here to visit the official website of Personal Loans

Buying Guide For Debt Consolidation Loans

Are you new to debt consolidation? Check out our guide below, as we have laid out the benefits and the risks, plus the multiple debts people most commonly consolidate.

Understand the Benefits

  • Pay Less Interest: If you can consolidate multiple debts with high interest ( in the double digits) into a single loan with an interest rate of 10% or less, you will likely save hundreds of dollars compared to paying each loan individually.
  • Easy Repayment: It is difficult to keep track of many credit card debts or loan installments every month, especially if they come due on different days. You can streamline the process by paying one debt consolidation loan payment, and it becomes easier to stay on top of your loan installments.
  • Boost Your Credit Score: You may see a boost in your credit score if you decide to consolidate your debt. By paying off your credit card debt using a debt consolidation loan, you bring down your credit score-use ratio, and your credit history of on-time payments could improve as you make a single, one-time payment every month.

Understand the Risks

  • Upfront Fees: You will likely have to pay upfront costs associated with the loan upon taking it out. These could come in the form of origination fees, closing costs, or balance transfer fees. However, make sure these fees do not outweigh any savings you hope to gain as part of your debt consolidation efforts.
  • Collateral May Be Required: Depending on the lender, you may be asked to provide collateral. Remember, though, this collateral may be seized if you fall behind on your loan payments.
  • Debt Cost Could Be Raised: Your likelihood of saving money using a debt consolidation loan depends on the structuring of that loan. If you have an interest rate similar to the loans you are already repaying but select a longer loan term, you are going to pay more interest charges over time.

Debts People Commonly Consolidate

By refinancing using a lender that offers debt consolidation loans, you could pay less interest over time. However, it should be noted that if you do refinance or consolidate, the terms of the loan could be reset, and the overall cost could increase. So, make sure you review all terms of your loan carefully, so you do not end up spending more.

  • Student Loan Debts: If you have many student loans you are dealing with, consolidating those can give you peace of mind and a single, monthly payment. Some lenders offer consolidation loans at competitive interest rates, some of which are much lower than the interest rates for student loans.
  • Credit Card Debt: You can do a debt consolidation credit card balance using a 0% APR balance transfer credit card, personal, or home equity loan. The best way to consolidate credit card debt is to find a funding source with a lower interest rate than what you currently pay. Personal loans are an excellent way to go about this, as they often come with interest rates that are much lower than your everyday credit score card. If choosing the 0% card option, you will find out if and when the interest rate changes.
  • Medical Debt: If you have incurred many medical bills, consolidating your debt into a single monthly payment can make life easier. If your insurance or doctor’s office does not offer repayment plans, or if the installments they do have are too expensive, a personal loan may be your solution. Personal loans come with lower interest rates compared to credit score cards, and it could allow you to stay away from bankruptcy thanks to expensive medical bills. A 0% APR credit card is also an option, but only if the credit card debt can be repaid before the interest rate goes up.

Is Debt Consolidation Right for Me? 

You may feel like debt consolidation is the way to go, and some of you may be excited about applying for a loan and opening up a new chapter in your quest to pay down debt. But, before we go into that, make sure this method of eliminating debt is right for you.

Here are some factors to consider:

  • What does your credit score look like? If you have a good credit score, you will get a better interest rate and better loan terms. Typically, this starts at 670 for FICO scores.
  • What interest rate is your current debt consolidation loan? On average, you can expect to pay about 9.41% on a personal loan, says data from Experian. Meanwhile, the typical credit score card charges about 16% for interest. So, if you can get a personal loan for a lower interest rate than what you are currently paying, consolidating that debt could help you save some money on interest.
  • Have you formulated a plan for the repayment of your loan? One thing to think about is how you plan on repaying your debt. Credit score cards are tempting because they offer “revolving credit score,” meaning the moment you pay off part of the balance, you can use it once it is freed up and the payment has been applied. So, if you keep using the card even though it has been paid off, and you are only paying the minimum amount due instead of the full balance, you are always going to be in debt. So, make sure you are ready to stick to a plan of repayment, so you can climb out of debt.

FAQs About Debt Consolidation Loan Services

Q. Will Debt Consolidation Hurt My Credit Score? 

At first, it may appear to hurt your credit score. To get a debt consolidation loan, for instance, there will need to be a hard pull done on your credit score.

In addition, opening a new line of credit will temporarily lower your score. But, with your continued on-time payments and your lowered credit score utilization ratio, you should see your scores climb.

Q. Are Debt Consolidation Loans Easy to Get? 

Yes, but it depends on your credit score. Physically getting the loan is easy, as you can do it right from your computer or mobile device. However, the biggest issue with getting a debt consolidation loan is the borrower’s credit scores.

Having a good credit score will make it easy to get a loan with a lower interest rate and terms. Meanwhile, those with bad credit scores will have to contend with higher interest and lesser loan amounts.

Q. What Debt Consolidation Companies Are Legitimate? 

All of the companies featured on the lending networks listed in our article are safe ways of getting debt consolidation loans. These are legitimate companies, but they do vary when it comes to the terms and conditions of the loans and their interest rate.

It is best to go with a local bank or credit union if you would like to pursue a debt consolidation loan, but we know that is not always feasible.

However, you can rest assured that local banks, credit unions, and the loan companies listed on Personal Loans, BadCreditLoans, MoneyMutual, and CashUSA are all safe to use.

Q. Can Debt Consolidation Help with Payday Loans? 

The answer to this is yes. With payday loans, you must pay back the debt consolidation on your next payday. But, some borrowers are not able to do this, and, thus, more fees are incurred. As a result, the cost of borrowing keeps going up.

Payday loan debt consolidation can help by combining these high-interest loans into one payment using a personal loan. Personal loans for debt consolidation feature lower fees and APR compared to payday loans, whose interest is incredibly high (400% in some cases). Therefore, they make it easier for borrowers to get out of debt.

Q. Why Are Personal Loans for Debt Consolidation Helpful? 

Personal loans for debt consolidation are helpful in a variety of ways. For starters, it helps you pay everything with one single, handy payment every month.

Second, debt consolidation loans are typically lower when it comes to their interest rates, which saves you money.

Third, it is a great way to get out of debt that continues to roll over, such as payday loans that can compound if they are not paid back on the due date.

It is also an excellent way to raise your credit score, provided you can avoid using your credit card debt/taking out additional loans as you pay off the debt consolidation loan.

Debt Consolidation Loans: Conclusion

As you can see, it is easy to get a debt consolidation loan if you need it. However, you must be ready to change your spending habits. These loans can only work if you are willing to stop using your revolving line of credit/opening up other loans in the process.

So, if you are ready to change your spending and pay off that debt once and for all, and bring up your credit score in the process, a debt consolidation loan could be for you. However, make sure to read all terms and conditions of your loans for debt consolidation carefully before signing. Good luck!



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Best Debt Consolidation Loans in March 2022 https://top100programs.com/best-debt-consolidation-loans-in-march-2022/ Thu, 03 Mar 2022 10:42:09 +0000 https://top100programs.com/?p=808 Editorial Independence We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. American consumers had a total of $820 billion in credit card […]]]>



We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

American consumers had a total of $820 billion in credit card debt at the end of 2020, according to the Federal Reserve Bank of New York. Although total debt obliglations were lower in 2020 than in the years before, consumer debt (credit cards, auto, and personal loans) still accounted for 5.4% of American households’ disposable income. 

If you have a lot of high-interest debt, such as credit card debt, personal loans, medical loans, or payday loans, a debt consolidation loan could be a good option. If you consolidate this debt into a single loan with a lower interest rate than your existing debt, you can save on interest, pay off your debts faster, and streamline your finances with one monthly payment. 

Keep in mind that a debt consolidation loan only makes sense if you can get an interest rate that’s lower than the current interest rate of your existing debts. You should also take into account any fees. Always comparison shop between multiple lenders to get the best rate possible, then run the numbers yourself to see if a debt consolidation loan makes sense for your personal situation. 

If you’re looking for a place to start, here are our picks for the best debt consolidation loans. 

Best Debt Consolidation Loan Rates in February 2022

INSTITUTION CURRENT APR LOAN TERM RANGE MIN. LOAN AMT. MAX LOAN AMT. MINIMUM CREDIT SCORE REQUIRED
LightStream 2.49% to 19.99% (0.50% autopay discount included) 2 to 7 years $5,000 $100,000 Not specified
SoFi 5.74% to 20.28% (0.25% AutoPay discount included) 3 to 7 years $5,000 $100,000 680
Payoff 5.99% to 24.99% 2 to 5 years $5,000 $40,000 640
Best Egg 5.99% to 35.99% 3 to 5 years $2,000 $50,000 640
Marcus by Goldman Sachs 6.99% to 19.99% (0.25% AutoPay discount included) 3 to 6 years $3,500 $40,000 Not specified
Discover 5.99% to 24.99% 3 to 7 years $2,500 $35,000 Not specified
Rocket Loans 5.97% to 29.99% (0.30% AutoPay discount included) 3 to 5 years $2,000 $45,000 540

How We Chose These Lenders

This list does not represent the entire market. We began by analyzing the most commonly reviewed and searched-for debt consolidation loan rates. We only included lenders that offered loans marketed specifically as debt consolidation loans. However, it’s worth noting that other lenders offer personal loans that can be used for debt consolidation purposes too. Then, we cut out any lenders based on the following criteria:

  1. We eliminated lenders that don’t make it easy to find essential loan information like APRs, fees, minimum and maximum loan amounts, and available loan terms on their websites without entering an email or other personal information. Many lenders prominently display this information on their sites, making it easy to compare to other lenders. If you are in the market for a debt consolidation loan, we’d recommend a transparent lender that doesn’t require personal information for a rate comparison.
  2. We ruled out any lenders whose max APR exceeds 30%. Since the goal of a debt consolidation loan is to consolidate your existing high-interest debt into a single loan with a lower interest rate, we believe that it makes sense to feature lenders whose average interest rates are lower than the average credit card interest rate. Keep in mind that the rates listed on lender websites are only general ranges with the minimum and maximum rates. The rate you qualify for will likely fall somewhere between and will depend on factors like your credit score and loan term. The only way to know the exact rate you’ll get is to prequalify or apply for a loan. 
  3. Our list only features direct lenders rather than intermediaries or loan marketplaces. We also ruled out credit unions, which have unique membership requirements and limit the number of people who could easily consider them for a loan. Credit unions can offer competitive rates to those who qualify; check your local area or use a credit union locator to compare rates.
  4. Also, none of these lenders charge any fees or penalties for early payments or otherwise paying off your loan early. We don’t think you should ever have to pay a fee to get out of debt faster. We will never recommend a personal loan that includes such a fee or penalty.
  5. Finally, we eliminated any lenders that did not have an A rating or higher with the Better Business Bureau. 

The above rates and loan information is accurate as of February 14, 2022. The NextAdvisor editorial team updates this information regularly, though it is possible APRs and other information changed since it was last updated. Some lenders may offer a rate discount if you pay with AutoPay. If the advertised rates include an AutoPay discount, it will be clearly marked. Also, some loan offerings may be specific to where you live. Keep in mind that the longest loan terms and largest loan amounts may only be available to borrowers with the best credit.

Lender Overview

LightStream

Overview: A division of Truist Bank, LightStream offers fee-free debt consolidation loans with no fees for borrowers with good to excellent credit.

Pros: LightStream charges no fees on its loans and offers the Rate Beat program, which will offer a rate 0.1% lower than rates from competing lenders for the same loan term, with certain conditions. LightStream also offers a $100 Loan Experience Guarantee, where if you’re not satisfied with the service you received and explain why in a questionnaire, the company will send you $100.

Cons: LightStream requires you to go through the entire application process (including a hard credit inquiry, which can affect your credit score) to know the exact rate you’ll get, making it hard to shop around and compare with other lenders.

LIGHTSTREAM
Current APR 2.49% to 19.99% (0.50% autopay discount included)
Loan Term Range 2 to 7 years
Loan Amount $5,000 to $100,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score None specified
Minimum Annual Income None specified
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

SoFi

Overview: SoFi offers no fees, a way to prequalify online, and other perks. But loan eligibility is limited to those with good credit scores and who are currently or soon-to-be employed or have another source of income. 

Pros: SoFi charges no origination fees or late fees (although you’ll still be on the hook for interest on late payments). SoFi offers an unemployment protection program that will pause your payments and provide job placement assistance if you lose your job.

Cons: SoFi has stricter eligibility requirements than other lenders on this list. In addition to credit score requirements, you also have to be currently employed, have sufficient income from other sources, or have an offer of employment that starts within 90 days to qualify for a loan. Finally, SoFi loans are not available to residents of Mississippi. 

SOFI
Current APR 5.74% to 20.28% (0.25% AutoPay discount included)
Loan Term Range 3 to 7 years
Loan Amount $5,000 to $100,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score 680
Minimum Annual Income None specified, but employment or alternative income is required
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Payoff

Overview: Payoff by Happy Money specializes in debt consolidation loans and has lower credit score requirements than some other lenders on this list. You can also prequalify online without a hard credit check. 

Pros: Payoff has a minimum FICO credit score requirement of 640, which is considered in the “fair” range by Experian. This makes Payoff more accessible to those who may not have good or excellent credit. Keep in mind, though, that credit score isn’t the only determining factor lenders use when deciding whether to grant you a loan. Payoff members also get free monthly FICO score updates.

Cons: You need to have at least three years of established credit to qualify for a Payoff loan. In addition, Payoff loans aren’t available in Massachusetts, Mississippi, Nebraska, and Nevada.

PAYOFF
Current APR 5.99% to 24.99%
Loan Term Range 2 to 5 years
Loan Amount $5,000 to $40,000
Prepayment Penalty None
Origination Fee 0% to 5%
Minimum Credit Score 640, and three years of established credit
Minimum Annual Income None specified
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Best Egg

Overview: Best Egg offers debt consolidation loans with a quick application process and the option to prequalify online. Like Payoff, Best Egg offers loans to borrowers with “fair” credit (640 and above). 

Pros: Best Egg has a quick online application process, allowing you to receive funds in as little as one business day. 

Cons: Although Best Egg offers loans to those with fair credit, getting the lowest APR advertised requires you to have an annual income of at least $100,000 and a minimum FICO credit score of 700.

BEST EGG
Current APR 5.99% to 35.99%
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $50,000
Prepayment Penalty None
Origination Fee 0.99% to 5.99%; at least 4.99% for loan terms longer than four years
Minimum Credit Score 640; 700+ for the lowest APR
Minimum Annual Income $100,000 minimum individual annual income for the lowest APR
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Marcus by Goldman Sachs

Overview: Marcus, a subsidiary of Goldman Sachs, offers fee-free debt consolidation loans for borrowers with good-to-excellent credit. 

Pros: Marcus offers an on-time payment reward where if you pay your loan on time and in full every month for 12 months, you can get an interest-free payment deferral for one month. Marcus also charges no origination fees, sign-up fees, or late fees. 

Cons: Although Marcus doesn’t specify a minimum credit score needed to qualify for a loan, it does say you’ll need good or excellent credit (700-850) to get the lowest rates.

MARCUS BY GOLDMAN SACHS
Current APR 6.99% to 19.99% (0.25% AutoPay discount included)
Loan Term Range 3 to 6 years
Loan Amount $3,500 to $40,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score None specified; borrowers with scores of 700-850 can get lower rates and larger loan amounts)
Minimum Annual Income None specified
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Discover

Overview: This popular banking and credit card company also offers debt consolidation loans with no origination fees, flexible repayment terms, and same-day decisions in most cases. 

Pros: Discover charges no origination fees, and no other fees, as long as you pay on time. Discover offers a same-day decision in most cases, as well as an option to pay off creditors directly. If you change your mind about needing the loan, you’ll pay no interest if you return the loan funds within 30 days. 

Cons: You need a minimum household income of $25,000 to qualify for a Discover loan. In addition, you can’t use the loan to pay off a secured loan or directly pay off a Discover credit card. 

DISCOVER
Current APR 5.99% to 24.99%
Loan Term Range 3 to 7 years
Loan Amount $2,500 to $35,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score None specified
Minimum Annual Income $25,000 household income
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Rocket Loans

Overview: Rocket Loans, a subsidiary of mortgage company Quicken Loans, offers debt consolidation loans for people with “poor” credit, although you may pay higher interest rates. 

Pros: Rocket Loans requires a minimum credit score of 540, making it a viable option for people with “poor” credit. Rocket Loans offers online preapproval as well as same-day funding.

Cons: The maximum interest rate for Rocket Loans is on the high side of the spectrum for this list, although the minimum interest rate is on the low side. Keep in mind that the exact interest rate you’ll get depends on your credit score, and those with poor credit will typically get higher rates. Rocket Loans only offers two loan terms: 3 years and 5 years. 

ROCKET LOANS
Current APR 5.97% to 29.99% (0.30% AutoPay discount included)
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $45,000
Prepayment Penalty None
Origination Fee 1% to 6%
Minimum Credit Score 540
Minimum Annual Income $24,000
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

What is Debt Consolidation?

Debt consolidation is when you consolidate multiple sources of debt — for example, credit cards, personal loans, payday loans, or medical bills — into a single loan. Some common reasons for consolidating debt include:

  • Simplifying your finances by combining your debt into a single monthly payment
  • Consolidating high-interest debt, like credit card debt, into a lower-interest loan
  • Consolidating debt with a variable interest rate into a fixed-rate loan
  • Reducing your monthly payment by getting a longer loan term
  • Being able to budget better with fixed, monthly payments

The two most common ways of consolidating debt are balance transfer credit cards and debt consolidation loans. With a debt consolidation loan, you take out a loan to pay off your existing debt and pay off the new loan over a fixed time period. A balance transfer credit card comes with an introductory 0% APR, making it a good move if you qualify for one of these cards. Whether you use a balance transfer credit card or a debt consolidation loan, it is essential to make a plan to pay off the consolidated debt before the loan term ends or an introductory APR expires.

What is a Debt Consolidation Loan? 

A debt consolidation loan is a type of personal loan taken out for the purpose of consolidating debt. Although many lenders offer products specifically called debt consolidation loans, they’re typically the same as personal loans and have the same loan terms and APRs, just under a different name. Some debt consolidation loans might offer benefits geared toward those looking to consolidate debt, such as the option to pay your lenders directly through the loan provider, saving you a step. 

Debt consolidation loans typically fall into two categories: secured and unsecured. Secured loans require you to put up an asset — such as a home or car — as collateral, which the lender can seize if you default on your loan. Unsecured loans don’t require collateral. Because secured loans are less risky for the lender, they typically have lower APRs and credit score requirements. However, be careful when taking out a secured loan; if you fall behind on your payments, you could lose your collateral. In general, you want to avoid trading any unsecured debt for secured debt since that increases your risk. 

Benefits of a Debt Consolidation Loan 

A debt consolidation loan can help you pay off debt and improve your financial health when used correctly. Some benefits of a debt consolidation loan include:

  • Lower APR. If you have high-interest debt like credit card debt, you may be able to consolidate your debt into a loan with a lower APR. A lower APR means you’ll pay less interest over the life of the loan, and you may even be able to pay off your debt faster as a result. Keep in mind the exact rate depends on factors like your credit score and debt-to-income ratio, so you’ll need to prequalify for a loan or get a quote to see your rate. A debt consolidation loan is likely not a good idea if you can’t get a lower APR than your current one. Also, be aware that fees may cut into your savings; before taking out a debt consolidation loan, always crunch the numbers to see how much you can save.
  • Regular, fixed-rate payments. If you have lots of credit card debt with no plan to pay it off, a debt consolidation loan can help. With a debt consolidation loan, you’ll make regular monthly payments with a fixed payoff date to help you budget better. You’ll also get a fixed interest rate, as opposed to a variable APR with credit cards, eliminating any surprise changes in interest charges. 
  • Streamline your finances. If you have multiple sources of debt, such as several credit cards or personal loans, combining them all into a single monthly payment can simplify your finances and help you better keep track of your payment deadlines. A single missed payment on a credit card or loan can result in hefty fees or a significant drop in your credit score. A debt consolidation loan can help you avoid missing payments by reducing the number of separate bills you need to pay.

Keep in mind, a debt consolidation loan will only help you if you go in with a plan to pay off the debt. Before taking out a debt consolidation loan:

  • Calculate the interest and fees to make sure you’re saving money
  • Build the loan payments into your budget
  • Keep track of payment deadlines to make sure you don’t miss a payment. 

Debt Consolidation Loan vs. Balance Transfer Credit Card 

One popular alternative to a debt consolidation loan is a balance transfer credit card. A balance transfer credit card is a credit card that offers a 0% APR introductory period, which typically ranges from 6 to 20 months. You can use a balance transfer credit card to consolidate debt by putting your existing debts onto the credit card and paying it off before the introductory period expires, thus paying no interest on the balance. (Though you may have to pay a balance transfer fee, usually around 3%.)

The biggest draw of a balance transfer credit card is paying off the balance before the introductory period expires and, consequently, paying no interest at all. Having a plan to pay off debt is even more important when using a balance transfer card, or you’ll be stuck with high APRs once the introductory period ends. The best balance transfer cards are typically available only to those with good or excellent credit, making them less accessible than personal loans for those with poor or fair credit.

Personal Loan Balance Transfer Credit Card
• Installment loan
• Fixed interest rate for the loan term
• More options for those with poor or fair credit
• May charge an application fee, origination fee, prepayment penalty, and other fees
• Credit card
• 0% APR introductory period, then high variable APR
• Fewer options for those with poor or fair credit
• May charge a balance transfer fee, a monthly credit card fee, and other fees

Alternatives to a Debt Consolidation Loan

In addition to balance transfer credit cards, there are several other alternatives to debt consolidation loans or personal loans for consolidating debt. These include:

Home Equity Loan or HELOC

You can tap into your home equity for immediate cash with either a home equity loan or home equity line of credit (HELOC). A home equity loan is a secured installment loan where you borrow a lump sum and pay it back, with interest, over a fixed period. A HELOC is a revolving line of credit that works like a credit card, where you can withdraw as much cash as you need (up to the credit limit) during the draw period and pay it back during the repayment period.  Home equity loans and HELOCs use your home equity as collateral and may have lower rates than unsecured personal loans or credit cards. Be aware, though, that if you default on the loan, the lender could foreclose on your house. 

Cash-Out Refinance

Similar to a home equity loan or HELOC, a cash-out refinance also lets you use your house as a means of accessing cash. The process just works differently. With a cash-out refinance, you take out a new mortgage with a larger value than your current mortgage, pay off your old mortgage with the money, and keep the difference as cash. Since mortgage rates are relatively low right now, a cash-out refinance may be a better deal than a home equity loan, HELOC, or personal loan. 

Credit Counseling

If you’re struggling with debt, many credit counseling agencies offer services to help you make a debt repayment plan and get your finances back on track. Credit counseling is different from debt settlement, where for-profit companies negotiate with your creditors in an attempt to get them to settle your debt for less than the total amount owed. Debt settlement companies typically charge hefty fees for their services, and settling your debt for less than the original amount can severely hurt your credit score. Credit counseling is typically offered for free or for a small fee by nonprofit organizations. 



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News – Lockdowns: Continued consolidation of the big banks market – Further aided by big government https://top100programs.com/news-lockdowns-continued-consolidation-of-the-big-banks-market-further-aided-by-big-government/ Fri, 25 Feb 2022 17:26:15 +0000 https://top100programs.com/news-lockdowns-continued-consolidation-of-the-big-banks-market-further-aided-by-big-government/ We have long chronicled America’s devolution to big government and big business fascism. Revolving door: Big Gov and Big Biz are definitely linked There’s So Much DC Cronyism – Private Sector Wants It Against Government How did Big Tech get so big? Massive government cronyism Recent government lockdowns and takeovers – imposed under the guise […]]]>



We have long chronicled America’s devolution to big government and big business fascism.

Revolving door: Big Gov and Big Biz are definitely linked

There’s So Much DC Cronyism – Private Sector Wants It Against Government

How did Big Tech get so big? Massive government cronyism

Recent government lockdowns and takeovers – imposed under the guise of the Chinese virus – have only accelerated this terrible ongoing convergence.

Of course, Big Pharma has grown. Because the government was paying them tens (hundreds?) of billions of dollars to develop ineffective and dangerous vaccines – and many, MANY recalls. And then force us at gunpoint to take them.

World’s Largest Healthcare Companies 2021: Big Pharma and Insurers are Profiting from the Pandemic

Big Pharma and the Big State: The Neverending Story

This is how Big Pharma wins

Big Tech has certainly grown exponentially – and engaged in massive market consolidation. Because with We the People forced at gunpoint by the government to never leave the house – what else was there to do but waste online?

Big Tech continues shopping spree, sweeping antitrust scrutiny

With a $560 billion war chest, big tech is on a pandemic M&A spree despite political backlash

Big Tech spent a lot of money in 2021 on lobbying and buying competition

Oh: And of course the Big Government bureaucrats weren’t going to miss out on the Big Pharma-Big Tech profit that their authoritarianism was going to make inevitable.

Congress invests heavily in pharma and tech stocks – April 27, 2020

For the past two plus years, ruled by the government, it has been VERY good to be a big company. The big banks have not missed the largesse of cronyism.

The Great Bank Consolidation and Accelerating Branch Closures Across America:

“The rate of branch closures has doubled during the pandemic.”

2021: the golden year of banking consolidation

It must have been a REAL good year for it to be “golden” – given the many years of bank consolidation that followed the Big Bank-crony Big Government Dodd-Frank Act of 2010.

How Dodd-Frank is killing small banks and choking the US economy

Dodd-Frank law strangles small banks

Dodd-Frank Kills Community Banks

Why compete with smaller private sector banks – when you can easily pressure them in DC?

And now, having murdered the small banking sector, the big banks are asking big government to go after their only remaining competitors: Payday lenders:

“A business that lends customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck.”

These lenders serve people with very low incomes – and very bad or no credit. To whom the big banks will lend – NOTHING.

Payday lenders only appeared in numbers after the Big Government-Big Bank cabal succeeded in murdering the small banks – which used to lend to these low income, bad credit people.

And now bipartisan DC is looking to de facto assassinate payday lenders. Yes, embarrassingly, the Republicans are also in DC’s Big Bank game.

Would DC Republicans stop voting for DC Democrat Socialism?:

“The DC assimilation of the GOP continues (to reveal itself). And some Republicans brag about it….

“‘Grothman introduces the bipartisan Veteran and Consumer Fair Credit Act (VCFCA):

“‘Congressmen Glenn Grothman (R-WI) and Jesus “Chuy” Garcia (D-IL) today introduced the bipartisan Veteran and Consumer Fair Credit Act (VCFCA).’

“What is VCFCA? It’s a socialist price cap bill. That is, a rate cap on loans.

Bad ideas never die – because governments keep reimposing them.

It’s not like we don’t have previously tried government price cap several times:

“Price caps are – as always, everywhere and for everything – a terrible idea.

“‘Price caps are a bad idea’

“‘Price Control – Bad Idea, Whether Temporary or Permanent’

“’Capping energy prices? Another bad idea

« ‘Cap and Trade Primer: Eight reasons why cap and trade is hurting the economy and cutting jobs’

“‘The price cap on health insurance is a bad idea’

“Control of drug prices: bad idea”

“‘Why electricity price caps are a bad idea’

“Why?

“‘Price controls cause shortages:

“’Imposing price controls to deal with inflation is as illogical as trying to deal with rising pressure in a boiler by manipulating the needle on the boiler pressure gauge. It’s no less self-destructive, too….

“The consequence of price controls which is the most central, most basic and most important from the point of view of the explanation of all the others is that price controls cause shortages.”

A shortage of payday loans and their lenders – is EXACTLY what the big banks want.

So Big Government is looking to give it to them.

Because why compete – when government can eliminate competition?

It is even more the kind of fascism that is our future.

Photo by Mike Mozart, Attribution 2.0 Generic (CC BY 2.0).



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Alternatives to Debt Consolidation Loans https://top100programs.com/alternatives-to-debt-consolidation-loans/ Fri, 25 Feb 2022 08:00:00 +0000 https://top100programs.com/alternatives-to-debt-consolidation-loans/ Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. After you receive the funds from this loan, they are used to pay off your other debts. If you pay off the loan on time, get a […]]]>



Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. After you receive the funds from this loan, they are used to pay off your other debts. If you pay off the loan on time, get a lower interest rate, and don’t incur any additional debt that you can’t handle, you might be able to pay off your debt faster and save a ton of money on interest.

However, while using these loans is a good way to consolidate payments and hopefully lower the interest rate on your debt, there are several debt consolidation loan alternatives for people who don’t. may not qualify for a debt consolidation loan or those looking for lower interest rates. .

Debt Consolidation Loan Alternatives

A debt consolidation loan is not for everyone. Since debt consolidation loans are unsecured personal loans, lenders may have stricter eligibility criteria or the loans may not be large enough for the types of debts you are trying to consolidate. Here are some debt consolidation loan alternatives:

  1. Balance Transfer Credit Card: A balance transfer card allows you to transfer debt from other credit cards – usually credit cards from other companies only – or use a balance transfer check to combine other forms of debt into one 0% interest rate. This promotional low rate period typically lasts 12-21 months, and a good to excellent credit rating is required for approval. Once the introductory period is over, you will be responsible for paying the card’s standard interest rate on the remaining balance. Additionally, most cards will charge you a balance transfer fee on the total amount you transfer, usually 2-5%.
  2. Home equity loan or HELOC: Home equity loans and home equity lines of credit (HELOCs) allow you to borrow against the equity in your home. While a home equity loan has fixed monthly payments at a fixed interest rate, a HELOC works like a credit card and has a variable interest rate. Both can be used to consolidate high-interest debt, but you risk losing your home if you can’t pay them off. Also, both require you to have some equity in your home. In comparison to debt consolidation loans, home equity loans and HELOCs often have longer repayment periods, larger loan amounts and lower interest rates.
  3. Refinancing by collection: A cash-out refinance replaces your existing mortgage with a brand new mortgage for more than your current outstanding balance. You can withdraw the difference between the two balances and use it to improve your home or consolidate your debts. As with using a home equity loan or HELOC, you risk losing your home if you cannot repay your new loan.
  4. Debt settlement: Debt settlement takes place when you negotiate with your lender to pay less than what is owed to settle the debt. You can negotiate with the debtor yourself or pay a fee to a debt settlement company or lawyer to negotiate on your behalf. Even if you, a lawyer, or a business successfully negotiate a settlement, your credit score can take a hit.
  5. Bankruptcy: Filing for bankruptcy involves going to federal court to have your debts canceled or reorganized to give you time to pay them off. While you can pay off your medical debt, personal loans, and credit card debt in the event of bankruptcy, paying off your student loans and tax debt is incredibly difficult. Before choosing this alternative, keep in mind that your credit score will take a hit; it may take years for him to recover.

The bottom line

While using a debt consolidation loan to merge your high-interest debts might make financial sense if you can get a lower interest rate, it’s not your only option. In some cases, choosing an alternate route may be a better choice. For example, you might be able to get a lower rate by taking out a home equity loan, since it’s a secured loan backed against your home.

However, it is also important to know the risks involved in choosing such an alternative. Shop around the different options and compare interest rates, repayment terms, and the trade-offs you’ll make with each before continuing.

Learn more:



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The main reasons why you can benefit from debt consolidation https://top100programs.com/the-main-reasons-why-you-can-benefit-from-debt-consolidation/ Wed, 02 Feb 2022 14:37:53 +0000 https://top100programs.com/the-main-reasons-why-you-can-benefit-from-debt-consolidation/ The consumer world we live in today leads some people to deal with bad credit. If you belong to this category of people, you probably need a bad debt consolidation loan. A bad credit consolidation loan can offer you a financial loan to combine all your credit cards with payday loans and high cost or […]]]>



The consumer world we live in today leads some people to deal with bad credit. If you belong to this category of people, you probably need a bad debt consolidation loan. A bad credit consolidation loan can offer you a financial loan to combine all your credit cards with payday loans and high cost or high interest loans.

In short, debt consolidation loans for bad credit can help you consolidate all your loans into one, saving you time while reducing your fees and interest. In other words, this type of loan is completely stress-free. There are, of course, other benefits of debt consolidation, which will be our topic today, and which we will explore in more detail below. Let’s go.

Top Benefits of Debt Consolidation Worth Trying

As mentioned above, debt consolidation is stress-free and time-saving, but there are other benefits to consider, such as:

1. Improve your credit score

When you pay off all of your debts with a debt consolidation loan, they will all be listed as “paid” on your credit card report, which can dramatically improve your credit score in the long run. A bad credit debt consolidation loan gives you the ability to control your high-cost finances by combining your loans into one simple example. Here’s how you can improve your credit score with such a loan:

  • Less fees, less interest, less late fees;
  • Negotiation with creditors to reduce repayments;
  • Refinancing;
  • Reduce interest rates by consolidating all debts into one loan.

2. Control your debt

Once you get overwhelmed with debt, you can start missing your monthly payments, which leads to bad credit. If your debt gets out of hand, you’ll just need more and more money to pay it off, but with such a bad credit score, you won’t be able to easily access personal finance from your traditional bank. This is precisely where a bad debt consolidation loan comes in, giving you a chance to regain full control of your finances.

3. Lower interest rates

If you find yourself in a situation where you have to pay several debts at once, chances are that at least some of them are from your credit card. Credit cards always have a higher interest rate than other available loans, and those rates tend to get even higher when you fail to make a payment on time. Therefore, a credit card consolidation loan can reduce that high interest on your debt, giving you the option of paying off the loan at a much lower rate.

Image courtesy of Unsplash



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Debt consolidation loans from 4.04% https://top100programs.com/debt-consolidation-loans-from-4-04/ Fri, 21 Jan 2022 05:32:57 +0000 https://top100programs.com/debt-consolidation-loans-from-4-04/ A debt consolidation loan essentially combines all your different debts (such as credit card debt and personal loan debt) into one loan with one repayment. This makes it easier to manage your debts, but before consolidating your debts, there are a few things you need to consider first. On this page: What is a debt […]]]>



A debt consolidation loan essentially combines all your different debts (such as credit card debt and personal loan debt) into one loan with one repayment.

This makes it easier to manage your debts, but before consolidating your debts, there are a few things you need to consider first.

On this page:

What is a debt consolidation loan?

A debt consolidation loan is a type of personal loan that allows you to consolidate many types of debt (such as credit card debt, personal loan debt, etc.) into one loan so that you don’t have to only one monthly repayment to be retained with a potentially lower rate. interest rate.

While this method can make it easier to manage multiple debts, it can also backfire if you end up stretching your debts with a longer loan term and therefore end up paying more interest than if you just repaid. your debts in the initial term(s) of the loan. This is more often the case if you consolidate your debts into a home loan, but it can also happen with personal loans if the term of the new debt consolidation loan is longer than the original term of the loan.

Advantages of consolidating your debts with a personal loan

  • Consolidating all your debts into a single loan makes it easier to manage your debt because you only have one monthly repayment to make.

  • You could potentially get a lower interest rate.

  • Consolidating all your debts into one loan means you may have fewer account maintenance fees to worry about.

Disadvantages of consolidating your debts with a personal loan

  • If you fail to make the repayments on time, you could end up increasing your debt amount due to additional late fees and interest.

  • You may have to pay a termination fee to get out of any existing loan.

  • If you don’t meet your repayments, you could hurt your credit score.

The Dos and Don’ts of Debt Consolidation Loans

  • DO shop around and compare debt consolidation loans to find one with a competitive interest rate and terms that work for you. Remember to look at the comparison rate when comparing loans, as it often better reflects the cost of the loan as it factors in fees.
  • DO look for a debt consolidation loan with flexible features, such as the ability to make additional repayments without being financially penalized and a flexible repayment frequency.
  • DO remember to consider all costs before consolidating your debt into one loan. There are set-up fees, prepayment fees, loan application fees, potential breakage fees for existing loans, and other fees. You may even find that it is not financially prudent to consolidate your debts, as it could cost you more than if you continued to repay your current loans.
  • DO set up direct debits so you never forget your monthly or fortnightly repayment. You can easily set up automatic transfers through your online banking app to your lender. You can time your automatic payments to coincide with payday, so your debt is paid off in the background and you don’t even have to think about it.
  • DO NOT include your debts in your mortgage (at least think VERY carefully before doing so). Mortgage repayments have very long loan terms (25-30 years) and stretching your short-term debt over such a long loan term could result in you paying thousands of additional dollars in interest and fees.
  • DO NOT move to a longer loan term without considering the financial implications. While this may reduce your monthly repayments, you could end up paying significantly more interest and fees over the term of the loan than if you had just paid off the debt within the original time frame.
  • DO NOT take on more debt. If you already have credit card debt or personal loan debt, don’t ask for more credit cards or payday loans to get out of it. Going into even more debt to pay off your existing debt may sound like a “stopgap solution,” but it can trap you in a spiral of debt. If you are really struggling to settle your debts, there are other options which we will discuss later.

Other Ways to Consolidate Your Debt

Besides consolidating your debts through a personal loan, there are two other common methods of debt consolidation:

Credit card balance transfer

For those of you who have credit card debt on multiple cards, you can consolidate all of that debt onto one card using a balance transfer.

Under this method, your credit card debts will be transferred to a card with a lower interest rate or even 0% interest rate for a limited time (the promotional or honeymoon period) which can be between three and 26 months. In theory, you should aim to pay off all your debts without incurring any additional interest for this honeymoon period.

But if you fail to repay all the debt before the end of this period, any debt that has not been repaid will then be charged at a rate of return, which is generally much higher than most interest rates. credit cards. For example, most credit card interest rates are around 17%, while the average return rate is 20% and can even reach 24% in some cases. A review by ASIC found that 30% of balance transfer users ended up increasing their debts by 10% or more because of it – not really the ideal outcome when the purpose of a balance transfer balance is to get rid of your debt, not to go any further. this.

Debt consolidation in your home loan

The other popular method of debt consolidation is to consolidate all of your debts into your mortgage. To consolidate all of their existing debt into their mortgage, many homeowners refinance their home loan into a larger loan or request an increase to their existing home loan. In this way, all their debts are gradually paid off thanks to the regular repayment of their mortgage.

One of the advantages of this strategy is that most home loans today have very low interest rates, between 1 and 3%, compared to interest rates on personal loans and credit cards. , which are around 17%. While it may seem obvious to consolidate your credit card and personal loan debt into your low rate home loan, it can backfire because mortgages have very long loan terms, typically between 25 and 30 years. . Stretching short-term credit card and personal loan debt over such a long loan term means you could end up paying thousands in additional interest and fees over the life of the loan.

If none of these methods appeal to you and you prefer to tackle your debt without consolidating it, there are other debt reduction strategies such as the “snowball strategy” or the “avalanche strategy”.

The two cents from Savings.com.au

Debt consolidation has its merits as it can make managing your debt much easier as there is only one loan repayment to worry about, rather than juggling multiple loan repayments on different debts. If debt consolidation isn’t for you, there are other debt reduction strategies you can try, such as the snowball method or the avalanche method discussed above.

If you don’t see any of these options working, don’t be afraid to contact your current lender and ask what financial hardship options they offer. Don’t take on more debt trying to manage your current debt. Payday loans and credit cards may seem like a “stop-gap solution”, but taking on even more debt to manage your current debt will only lead you into a spiral of debt – it’s just a recipe for a desaster.

Once you have managed to get yourself out of debt, it is extremely important to sit down and analyze what led you to this debt so that you do not fall back into the same situation. Set a budget and consider reducing your credit cards so that you are not tempted to pay future expenses with your card. If you’re the type of person who has trouble controlling impulse spending, cutting your cards is probably a good idea.



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