Statistics show that the average American household carries $90,000 of debt. This amount likely consists of multiple loan accounts, from unpaid credit card debt to student loans. However, most people don't know that you can reduce your monthly payments, adjust the repayment term length, and drag down interest rates by taking out a personal loan for debt consolidation.
This is a popular debt reduction method. If executed properly, consolidating your existing loan accounts will clear your current debt payments, help you save money on interest payments, and acquire repayment terms more suited to your lifestyle.
Want to learn more about the concept behind debt consolidation? Visit Any Credit for more information about refinancing debt for faster repayment.
One-size-fits-all loan accounts do not exist. Debtors would do well to compare the best debt consolidation loans on the market, assess their offers, and see which plan would help them achieve financial freedom the quickest. Check out these options to get started:
BestEgg trumps all the other debt consolidation loans on the market. They accept clients with a fair credit score and consolidate up to $50,000 worth of debt at a maximum repayment plan of 60 months.
Not many institutions can match these terms—especially when lending to clients with credit scores below 660. Although, note that BestEgg prioritizes clients with high credit scores.
Plus, BestEgg does not charge early payment penalties. That means good income clients can pay off their total loan amount ahead of time without incurring extra charges or interest payments.
For flexible repayment terms, turn straight to LightStream. They have personal loans with a maximum value of $100,000, and clients can extend their term length up to 84 months.
At the same time, LightStream also caters to low-volume borrowers. You can get a debt consolidation loan for as little as $600 and refinance it for 24 months.
Plus, clients don't have to worry about excess annual fees, origination charges, or prepayment fines.
Are you struggling to pay off your credit cards? You're not alone. Statistics show that the average American carries around $6,000 worth of revolving credit card debt. If your total debt comes from multiple cards with insanely high-interest rates and steep penalty fees, try consolidating credit card debt with Payoff.
They offer a better interest rate scheme than most commercial banks, and you won't incur late fees if you miss your dues. Although, we strongly discourage skipping your monthly payment.
Marcus by Goldman Sachs offers one of the lowest interest rate options and repayment terms on the market. Their rates are lower compared to most credit cards, the loan accounts don't have excess fees, and borrowers have direct-to-creditor payment options. The only downside is that borrowers need at least a 660 credit score to qualify for a debt consolidation loan.
Prosper offers joint loan applications that borrowers can utilize to get better repayment terms. For example, if you have bad credit records, co-apply with a willing relative who has higher scores and better income than you. Apart from the streamlined application process, joint loans also have a less drastic impact on your debt-to-income ratio.
Clients who have bad credit scores and need emergency funding can reach out to Upstart. What sets them apart from the rest is their speedy application process. Apart from the low minimum credit score requirement, they finish processing most applications in just one day. That means even a delinquent payer can get next-day funding for a $50,000 loan.
Bad credit debtors who can't qualify for other popular consolidation loans can try OneMain Financial. They don't have the best rates and you can only borrow up to $35,000, but their terms beat payday loans and extra credit cards. Plus, they don't charge excess fees if you pay off your loan ahead of time.
This list includes only a few of the best debt consolidation loans to choose from, so don't limit yourself to just one or two options. Strive to find a personal loan that matches your individual needs. Ensure the consolidated monthly payments only consume a small portion of your income and that the new account has overall better repayment terms.
If your credit score or income hampers your debt consolidation loan application, consider alternatives such as debt settlement. The success of any debt reduction strategy depends on a case-by-case basis. Do not blindly take out a new loan account without adequate pre-assessment and consultation.
Looking for alternative ways to pay off your debt? Any Credit has multiple resources on the best ways to manage all your loan accounts and achieve financial freedom. Check out the rest of the Any Credit website now!