What to Ask Before Meeting a Home Remodeler
Save time and effort by ruling out deal breakers with your contractor before an in-person session.
learn moreWhat is a Debt Consolidation Loan?
A debt consolidation loan is a personal loan that can provide a simple and more affordable way to combine multiple debts, like credit card balances and medical bills, into one convenient monthly lump sum payment.
This kind of loan typically comes with lower interest rates and lower monthly payments. So, if you’re struggling to pay all your day-to-day expenses as well as what you owe to creditors, a debt consolidation loan can be a great way to free up some extra cash and live a more comfortable, hassle-free life.
It can also save you money on interest and even help you pay off your debt faster.
How Does a Debt Consolidation Loan Work?
A debt consolidation loan works by giving you a new loan that you can use to pay off your outstanding debts instantly.
Then, rather than making multiple monthly payments to many different credit card companies, banks, and bill collectors, you simply make a single debt consolidation loan payment.
While debt consolidation loans don’t erase your debt, they do help you pay it off in a smarter, more affordable way. That’s because they usually come with lower, fixed interest rates that won’t increase, and of course, there’s no annual credit card fees.
Benefits of a Debt Consolidation Loan
One easy monthly payment.
Interest rates — that won’t change.
No origination fee. No annual fee.FAQs
Taking out a more manageable debt consolidation loan that you’re more likely to pay back every month may boost your credit score over time. That’s because credit score is tied to a number of factors, the two most important being the probability you’ll pay your bills and how much of total available credit you’re using, among others. Making regular and on-time debt consolidation loan repayments checks both of these boxes.
It is important to note that you may see a small, temporary dip in your credit score initially when taking out this kind of loan due to the necessary credit check during application and because closing credit card accounts can reduce the total amount of credit you have available. The latter can have a negative effect because less available credit and high balances means that the amount of credit you’ve utilized will be higher, which lenders see as a drawback.
It is important to note that you may see a small, temporary dip in your credit score initially when taking out this kind of loan due to the necessary credit check during application and because closing credit card accounts can reduce the total amount of credit you have available. The latter can have a negative effect because less available credit and high balances means that the amount of credit you’ve utilized will be higher, which lenders see as a drawback.
Thanks to lower interest rates and lower monthly payments, debt consolidation loans can be a good way to free up more money each month for daily expenses if you’re struggling with cash flow. They also combine all of your credit card payments and outstanding bill balances into one easy lump sum payment, so you don’t have to juggle a million different payment deadlines. Ultimately though, your personal financial situation will impact whether debt consolidation is right for you.
It’s easy to apply and get pre-qualified for a debt consolidation loan of up to $35,000 today! To apply, you’ll need the following information:
- Full Name
- Address information
- Social security number
- Your income information
- Your employment status
Debt consolidation is the process of combining multiple debts into one more affordable monthly payment. So instead of paying each individual credit card company or bill collector, you just pay back the single, simple debt consolidation loan. Debt settlement is for people who haven’t been able to pay their debts for a considerable time, and it involves trying to negotiate with creditors to either waive the debt or accept a smaller payment amount.
More Debt Consolidation Resources & Articles
What is Debt Consolidation?
Debt consolidation combines several loans or debts — usually credit card debt — into one low payment. This can lead to lower interest rates and lower monthly payments.
learn more.jpg)
Back to School: Financial Aid Checklist
Whether you’re a parent or an eager student getting ready to head back to school, don’t let your spirits…
learn more
4 Things To Think About Before Applying For A Personal Loan
Personal loans are one of the most efficient ways to get cash in your pockets quickly and responsibly.…
learn more