Unfortunately, debt is something that most people in the United States struggle with. In fact, it’s such a common issue that the average adult with a credit card has around $5,850 in debt on it – which is not something to overlook lightly.
In addition, nearly 40% of households in the U.S have revolving debt monthly, because they can’t afford to pay off their commitments. If you’re struggling to pay back cash that you owe, whether it’s a large or small amount, you’re likely to want to find a solution to your problem – but what can you do about it?
Could a debt consolidation loan help?
If you’re struggling to keep up with several debts, you may find that consolidating them could help. Often, by combining all of them into one loan, you’ll be able to have a lower interest rate to deal with, as well as only have one payment to make instead of multiple ones.
Personal loans, medical bills, and credit card balances are just a few kinds of high-interest debts that these loans are often able to help with. Typically, this is the perfect option for those who want to consolidate their high interest debts into one with a smaller interest rate. Plus, these kinds of loans can often have better terms too, which is something that almost anyone can benefit from.
With a debt consolidation loan, you might be able to pay off your debts faster and save cash.
What if I have bad credit?
Fortunately, whether your credit’s good or bad, there’s a good chance that you’ll be able to find a debt consolidation loan that works for you.
Shopping around and comparing
With so many different lenders out there who could help you, you may be wondering which one to go with. In most cases, it’s important not to just pick any company, though. Often, taking time to do your research and seeing what options are available to you can be the best way to find the right deal for you. Once you’ve found a range of lenders that look like they might be a good choice, the next step is to compare them.
You’ll often be able to save quite a bit of time by using a loan comparison tool. These can search for the different loan options and compare them to find the right ones for you.
In most cases, you’ll need to enter certain information to be able to use these tools to get the compared options, such as:
- Your state of residency
- Your credit score
- Why you want to take out the loan
- How much you need
Who are the best debt consolidation lenders?
When it comes to fast funding, many consider Avant to be the best debt consolidation loan company. However, LendingClub is often a good idea for those who have good credit, or those that need a loan of up to $40,000. On the other hand, if you’d prefer to have a better connection with your lenders, Personal Loans may be the ideal company for you.
Main benefits of debt consolidating
If you’re dealing with multiple debts, you may know that it’s not always an easy task to keep on top of all the different payments that you have to make. Many find that it can be much easier to keep on top of their payments if they only have one loan to handle.
Reducing your monthly payments
Paying off one long term loan with a low interest rate can help to reduce your monthly payments by a considerable amount, which is perfect for those who are struggling to meet their repayments.
Better for your credit
Since you’ll still be paying off the amount that you owe, debt consolidation can often keep your credit intact, rather than damaging it further.