Debt Consolidation

Information verified correct on January 21st, 2017

Want to consolidate your debts and cut your payments? Here are some of the intricacies you need to consider.

Streamlining your bills, managing your finances, reigning in spending and simplifying your finances – it can feel overwhelming but the process could be simpler than you might think. Imagine rolling all your debts into one so you have just one balance you can make progress on. If you’re having trouble managing your existing debt, consolidating it could be a good idea, provided you know what the process entails. You have multiple options to choose from and it’s in your best interest to weigh the pros and cons of each.

NetCredit Personal Loan

NetCredit Personal Loans

NetCredit offer you the chance to borrow money as alternative to bank personal loans. As you borrow more your credit score increases and your interest rate becomes lower.

  • Min. Loan Amount: $1,000
  • Loan Term: Varies upon State
  • Turnaround Time: 1 business day
  • Total Costs: Depends on your credit score.
  • Build your credit score - Must be 21+
  • No security needed
  • Confidential and secure!

    How do I consolidate my debt with a personal loan?

    With a personal loan for debt consolidation, you can borrow as much money as you need to pay off your existing debts, and then work on paying back the loan. One company, one monthly repayment: no more wondering who to pay first.

    The biggest advantage to a personal loan for consolidating your debts is saving on interest. If you have several credit cards for example, each with an APR of 12% or even more, you could save significantly if you were paying down that debt on personal loan with a 7% interest rate. With a lower interest rate and only one balance to keep track of, it may be easier to wipe out your debt for good.

    But of course, a consolidation loan is like any other loan: if you fail to make repayments, you will begin to accrue interest on your loan.

    How can I find the right option to consolidate my debt?

    Finding the right alternative to consolidate your debt requires you to examine features when making your comparisons.

    • Eligibility. Some lenders provide debt consolidation loans only to individuals with good and excellent credit scores. Some require that you earn a minimum amount every year to qualify.
    • Interest. All types of debt balances attract interest, which lenders commonly advertise as annual percentage rate (APR). Bear in mind that even a seemingly small difference in percentage can have a significant effect of the total interest payable, especially if you’re borrowing a large sum.
    • Fees. Prepare to pay fees in different forms. Examples include loan establishment fees, late fees and prepayment penalties.
    • Loan term. How long you take to repay your loan dictates how much you pay as interest. While a longer loan term would have lower payments, it would also have you paying more interest.
    • Secured or unsecured. While a secured loan can bring with it a lower interest rate when compared to its unsecured counterpart, it also comes with an element of risk. Getting a secured loan to pay off an unsecured loan, as a result, may not be a good idea.

    What kinds of debt can you consolidate?

    Make sure that the debt you want to consolidate has a higher interest rate than the loan you qualify for; so that you actually can see savings in interest payments. People normally consolidate these kinds of debts:

    • Credit card debt. Having multiple credit cards requires that you keep track of making timely payments towards each, which can be cumbersome. As well, some credit cards charge noticeably high APRs.
    • Personal loans. If you have multiple personal loans you can think about bringing them under a single umbrella. Depending on your existing financial situation and creditworthiness you may qualify for a competitive interest rate.
    • Private student loans. While consolidation of federal student loans is not possible, students can consolidate private education loans.

    Personal loans for debt consolidation

    Rates last updated January 21st, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Max. Loan Amount Minimum Credit Score Turnaround Time Requirements
    NetCredit Personal Loan
    You could borrow up to $10,000 and get an interest rate personalized to your credit score
    $10,000 300 1 business day Varies based upon state of application Go to site More
    LightStream Personal Loans
    You could borrow up to $100,000 with rates starting from 1.99% fixed.
    $100,000 680 Varies You must have a good or excellent FICO and be an American citizen or a permanent resident of the US. Go to site More
    SoFi Personal Loan
    Borrow up to $100,000 with a competitive APR and no fees.
    $100,000 660 Varies You must be a U.S. citizen or permanent resident 18 years or older. Go to site More
    PAVE Personal Loans
    Use your 680+ credit score to get a loan for up to $25,000
    $25,000 680 Varies You must be a US citizen, 680+ credit score and have a full time job. More
    Avant - Personal Loan
    Borrow up to $35,000 with APRs ranging from 9.95% – 36.00%
    $35,000 660 1-2 business days You must have at least a fair credit score (580 or more). Showing proof of a steady income. You must be a US Resident over 18 years old. Go to site More

    Personal loan lender matching services

    These matching services connect consumers with personal loan lenders. It is important to note that these services do not make credit decisions and they are not lenders, loan brokers or agents for any lender or loan broker. They can help link you up with a lender that might be able to help you access a loan.

    Rates last updated January 21st, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Max. Loan Amount Minimum Credit Score Turnaround Time Requirements
    PersonalLoans.com
    An online loan matching service that connects you with lenders.
    $35,000 Varies by Lender 1-2 days You must be employed, 18+ with a bank account. Go to site More
    TrustedPersonalLoans.com Personal Loan
    Trusted Loans give you flexibility to pay for your credit, once or twice each month.
    $10,000 330 As soon as tomorrow 18+, have an open bank account, be employed or have regular income Go to site More
    LendingTree Personal Loan
    What everybody ought to know about LendingTree and the personal loans it provides.
    $35,000 639 If you apply during working hours on a business day you can get access to approved funds within 24 hours. You must be an American citizen or a permanent resident of the US, You must be at least 18 years of age and You should have a regular source of income Go to site More
    Accredited Debt Relief
    Accredited Debt Relief can help you lower your monthly payments and interest rates or get out from serious debt. They offer free consultations at 1-877-569-5675.
    Varies based on lender No minimum Varies based on lender 18 years of age or older, legal resident of the United States and additional terms may apply based on services and products used. Go to site More

    open field flag debt consolidation

    Is there anything to consider before applying?

    Choosing to go the debt consolidation way does not mean you no longer have to make efforts to keep your finances in check. Some people who opt for debt consolidation don’t have solid plans in place, and many still don’t pay enough attention to saving. If you’re consolidating your debt it’s important that you pay close attention to the new credit you’re accumulating. You should try to formulate and stick to a budget. If you’re getting to pay lower payments than you do as of now find out if it’s because of a lower interest rate or an extended loan term. If you’re making smaller payments on account of a longer loan term, remember that you’ll end up paying more in interest.

    What other options do I have for debt consolidation?

    The best type of debt consolidation option for you depends on the kind of debt you have along with how much you owe. Your primary alternatives include:

    • Credit card balance transfer. If you have existing credit card debt that attracts high interest you can look at getting a credit card that comes with a promotional balance transfer offer. These cards charge little to no interest on balance transfers for introductory periods, letting you consolidate credit card debt easily.
    • Secured loans and lines. There are lenders that let you borrow against the equity you’ve built in your home, the value of your car or certificate of deposit. By getting a secured loan you can get a lower interest rate. The downside is you risk losing your asset if you cannot repay the loan in the timely manner.
    • Student loans. Students cannot consolidate their federal loans with other debts, which include private school loans. However, you can work on consolidating private education loans with other types of debt. You can do this during the six months grace period after you graduate or after your loan gets to the payment stage.

    Have more questions about consolidating your debt?

    What is debt settlement?

    This refers to negotiating with a lender or more to reduce the balance you owe. After the settlement, the lender would render your debt as paid in full.

    Can I get a debt consolidation loan if I have poor credit history?

    Some lenders provide debt consolidation loans to individuals with less than perfect creditworthiness. In these cases, the APR you qualify for may not be as low as for someone with better credit.

    Can I transfer my existing debts to a loan that a friend or relative takes?

    No. You can transfer your existing debts only to new loans that you take in your own name.
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    US Personal Loans Offers

    Learn about our information service
    TrustedPersonalLoans.com Personal Loan

    Trusted Loans give you flexibility to pay for your credit, once or twice each month.

    LightStream Personal Loans

    You could borrow up to $100,000 with rates starting from 1.99% fixed.

    NetCredit Personal Loan

    You could borrow up to $10,000 and get an interest rate personalized to your credit score

    SWIFT Personal Loans

    With a 5 minute simple application, SWIFT connects you with lenders that will offer you terms that are reasonable, affordable, and trustworthy.

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