For many people who are struggling to pay off multiple high interest debts, consolidation is the ideal solution. Generally, a debt consolidation loan can help you to roll all your debts into one – and there are often a number of benefits that can come with this. However, if you’re planning to consolidate your debts, you may be wondering which lender can offer the right service for your needs.
What are the benefits of a debt consolidation loan?
With so many people opting for consolidation loans, you may be wondering how it could help you to take out one. Often, there are a number of advantages that can come with consolidating debt, such as:
Making your debt more manageable
Most would agree that by combining all of their debts into one, it’s much easier to keep on top of their outgoings. If you’ve found yourself struggling to remember the different payment dates or just want to make the entire process simpler for yourself, consolidating might be the ideal solution.
Lowering your interest rate
In most cases, consolidation loans will have a low interest rate, which is likely to be a major benefit for you if you’re currently dealing with several debts with high interest. By consolidating, you’ll often cut out quite a big chunk of the overall interest that you pay – and who wouldn’t want that?
Reducing your monthly payments
In many instances, the lower interest rate will also help to lessen the amount of cash you pay out each month, too. Because of this, it can often be a good idea for those who are struggling to meet their repayments.
You may be worried that consolidating your debts into one loan will have an impact on your credit score. However, it won’t typically make an impact – since you’re more or less still paying off what you originally owed. In some cases, you may find that it’s actually better for your credit to consolidate. Credit scoring models often see these kinds of loans as being better than revolving credit card balances.
Who are the best consolidation loan providers?
Want to know which debt consolidation loan companies offer the best deals in the United States? Here are a few of the providers across the country that you might want to consider checking out.
Marcus by Goldman Sachs
Often considered to be one of the best overall lenders in the U.S thanks to the fact that they generally offer competitive interest rates and have no fees (such as prepayment, origination, and even late fees), it’s not hard to see why many people choose to consolidate their debts with Marcus by Goldman Sachs.
Additionally, you’ll often be able to take out a loan in between $3,500 and $40,000 too. However, with a minimum credit score requirement of 660, it may not be much of an option for those with bad credit.
Discover Personal Loans
With no origination fees and competitive rates on loans ranging from $2,500 to $35,000 for those with good credit, this might be the ideal option for you if you have a high credit score.
As another company with a requirement of at least 660 on credit scores, their policies may not be as widely available as some others out there, but their low interest options are something that can be great for those with a higher score.
Don’t have good credit? OneMain Financial is one of the best providers in the country for bad credit. Often, they’ll accept some borrowers with poor credit and have no minimum credit score requirement, either.
While you may have to pay a higher interest rate at OneMain Financial than with other companies, if you can’t get an approval because of bad credit, this might be your best option. Generally, loans are available from $2,500 to $30,000.