Debt Consolidation Loans
If you have multiple payments to different lenders, like credit cards or loans, you can apply for a debt consolidation loan to consolidate all your debt into one lower monthly payment.
Debt Consolidation Loans
What Is Debt Consolidation?
Debt consolidation – not to be confused with debt settlement – is just like it sounds. It’s a simple way to use a personal loan to consolidate multiple unsecured debts (like credit cards, medical bills, payday loans) into one monthly bill. For example, instead of making payments to multiple creditors, you make a single payment to the debt consolidation loan’s lender instead.
Because personal loan rates can be lower than credit card rates (which have an average of around 15% APR), it’s possible to save a lot of money in interest rate payments. By extension, this could help lower monthly payments and/or pay down debt faster.
The best way to compare apples to apples is to get personalized rates for your current situation. It’s effortless – almost like searching for a flight or hotel.
Debt Consolidation Loans Pros
- Potentially lower interest rates vs. credit cards
- Easy application process
- Less risk since an unsecured personal loan isn’t tied to an asset
- Funds usually come through quickly
- Potential credit score increase
Debt Consolidation Loan Lenders
View here some banks and financial companies offering debt consolidation loans:
Check Into Cash
- Speed: 60 seconds qualification process with funds released in 24 hours
- Flexibility: Choose payday loans repaid on next payday or installment loans or repaid in few months
- Nationwide Reach: Online payday loans are available in 22 states
- Gold Standard: Consistent “best practices” standards for the personal loan industry according to the Community Financial Services Association of America (CFSA).
Fiona Personal Loans
- Get matched with prequalified loan offers
- Save time comparing pre-approved loans in one place
- Check your loan options with no impact on your credit score
- Get your money as soon as next business day
Monevo
- Save time: Get connected and compare loan providers in under a minute
- Credit Score: Check your options to take a loan with no impact on your credit score
- Transparency: Easily review all the lenders that work with Monevo
- Award-winners: The company has won several international awards
Upstart Loans
- Get loans at very low interest rates
- Process your application very quickly to get funds in 1-2 days
- It takes only minutes to apply and get rates with their automated service
- Available across most states
Debt Consolidation Loans Cons
- Sometimes lenders charge origination fees. Double-check the numbers & do a bit of “comparison shopping” to make sure you get the best offer available.
- Teaser rates require a high credit score (somewhere between 780-850). Note that it’s pretty easy to get rates personalized to you.
- There aren’t many options available (if at all) for credit scores below 600.
