Struggling to keep up with several debts and want to find a way out of the tough financial situation you’ve found yourself in? Don’t worry; you’re not the only one out there who’s had to deal with this issue. Fortunately, many of those who have been in similar circumstances to yours have been able to make a difference in their lives thanks to debt consolidation.
What is debt consolidation?
Often, these kinds of loans are able to help individuals who want to make their debts more manageable. Essentially, all you do is replace your multiple unpaid balances into one debt, reducing the different payment dates, lenders, etc. from however many debts you were handling down to one.
In most cases, this can make everything much easier to keep track of, which in return can often help to simplify your life and reduce the stress that can come with trying to manage multiple debts at once. However, you may find that there are other benefits to consolidating your debts, too.
For example, most of these kinds of loans come with a low interest rate. If you move all your high-interest balances onto a loan that plays host to this feature, you’re likely to save quite a bit of cash on your repayments. From having a smaller amount to pay overall on your debts to reducing your monthly payments, it’s not hard to see why this can be such a benefit.
How to consolidate debt
If you’re ready to make a change in your life and sort out your finances, taking out one of these kinds of loans might be ideal solution; but how do you roll all your unpaid balances into one debt?
Typically, you can’t do it alone. Often, you’ll need to take out a personal loan to consolidate your debts (from medical bills to unpaid credit card balances) – and luckily for those who want to combine their debts, there are a number of different companies that may be able to help you out with this.
How to find the right debt consolidation company
While there are likely to be numerous lenders out there who will be willing to give you a loan to sort out your finances, it’s often a wise idea to take the time to find the right one for your needs.
These types of companies can often vary in several ways, from the loan amounts that they offer to the additional fees charged (such as the application or origination fee). For this reason, shopping around and doing your research can often be the best way to ensure that you’re making the right decision by choosing to go with a certain lender.
Debt consolidation loans to consider
To help you to make the best choice for your needs, here are a few of the leading debt consolidation loan providers from across the United States.
- Marcus by Goldman Sachs – This company is often considered to be one of the best all-round loan providers, and one of the best lenders without any additional loan fees
- Prosper – You may find that the minimum amount of certain companies are more than you actually need for your consolidation loan, but since many would agree that Prosper is one of the best providers for a low minimum loan amount, you may find that you won’t have this problem when opting for one of their policies
- Discover – If you’d rather have a longer loan term on your new, consolidated debt, you may want to consider choosing Discover as your lender
- LightStream – Many find LightStream to be one of the best lenders for those who want to get a loan with a co-signer option