Consolidate debt can grow pretty quickly, especially when you are trying to manage a lot of them at the same time. If you are struggling with loan repayments, medical bills, and credit card debts, you should probably start looking into debt consolidation companies.
With Consolidate debt, you don’t need to continue paying all the bills until you clear them. You may get into bigger bills when you do that. You only need to apply for a single loan that will cover all the bills. You will then use that money to pay off all your bills and start paying the new loan in monthly installments. Remember, you will only be making one payment at the end of the month.
You can access consolidation loans from specialist companies or lenders who offer personal loans, but the rate will depend on your credit cards score. In some cases, you may pay more than you were initially supposed to settle because of your current score. You may also save a lot in the long run at certain interest rates.
Debt consolidation companies and debt settlement are sometimes used interchangeably, but they mean different things altogether.
Debt consolidation allows you to pay off your debts with a single loan, and then you will be paying for that loan in monthly installments.
Loan debt settlement, on the other hand, makes your debts easier to manage. You won’t be paying to all your lenders; instead, you will be paying the money into a fund. With debt settlement, someone else negotiates for the reduction of your debt. Although the negotiator will charge you, you can still save a lot of cash from debt settlement. You should, however, take note that debt settlement can affect your credit cards score negatively.
One of the best debt settlement companies is National Debt Relief. This company will advise you on how to reduce your loan debt. They will offer you even if you decide not to use their services.
If your credit cards score is good, you can access a low APR. The APR can be as low as 6% and as high as 18%.
Although Discover offers a wide range of financial services, debt consolidation is one of the prominent ones.
The company’s loan features the following
Discover is a reputable bank in the United States, and the company focuses on helping manage their money well, save, and get out of debt. They will offer you a fixed interest rate on your consolidation loan and even pay your creditors for you. In the end, you will save some money on interest rates and pay off your loan faster than you would have.
You should, however, note that the previous high-interest rates you paid prior to the debt consolidation companies will not be refunded.
Although Discover does not charge origination and prepayment fees, they charge late fees. This means that as long as you pay your loan on time, you won’t incur any fees.
You can access up to $35,000 in unsecured loans for debt consolidation. However, if you are ready to offer a guarantee for the loan, you can access up to $200,000.
Marcus can offer customers up to $40,000 in personal loans for debt consolidation. Customers who have good credit cards scores have a higher chance of qualifying for loans at lower rates. Customers with bad credit scores may be eligible, but the rates are incredibly high.
Marcus has an easy-to-use application platform, and you can get a lot of information about their products before you apply. You can even check the rates and others with the pre-application calculator. The company’s repayment terms are also flexible. You should, however, note that the loan term influences your interest rates.
You can complete the entire application online. If you encounter a problem during the application process, you can call the company’s support team to help you out. That means you don’t need to visit their office at all.
InCharge is based in the United States, and it’s objective is to help people manage their finances responsibly. The company offers credit counseling services. They also help people to consolidate their debts.
They help their customers to understand how to manage their finances for the long time. Such that, even when they get out of them, they will never accumulate a lot of debt that will require consolidation again.
Avant makes the loan application procedure easy. You can also track your loan repayments with the tools they have made available. Avant will also not penalize you for making overpayments. The company does not operate from a physical location, but it is always available via phone and email to help customers.
Avant also has a tool to help you check your eligibility. Fortunately, this procedure will not affect your credit score.
LightStream offers personal loans at highly competitive rates. Their loan terms are also longer than the terms offered by several other lenders. You don’t need to visit their office to get your loan approved; they will approve your online application.
They offer fixed-rate loans, and you don’t need to worry about late fees or origination fees. That means that if you settle your loan every month, you will know precisely when you will pay off your loan.
Wells Fargo is a reputable bank that offers a wide range of financial services, including debt consolidation. They will help you to consolidate any debt. They can provide you with up to $100,000 in loans.
Lending Club has a relatively simple application process. And you can get up to $40,000 when you apply. You can easily know when you will settle off your loan since they have a fixed rate and fixed repayment period. They have a strict loan application criteria, and they also have tools to ensure that people do not borrow beyond their means.
Prosper is a peer-to-peer lending platform, and it offers a wide range of loans, including debt consolidation loans. Prosper offers borrowers loans at impressive rates at a fixed time. This helps borrowers to plan their finances.
Even if you have a low credit score, you are likely to access loans from the company because they have a low credit score requirement. When your loan is approved, you will be required to settle a fee.
Payoff allows you to consolidate your credit card debts at a reasonable interest rate. However, their loan terms are short. The company charges an origination fee, but you won’t settle late fees or prepayment fees.
Debt consolidation is a good way of getting out of debt consolidation loan, but there are risks attached to it. It may not be as risky as filing for bankruptcy, but you should still be cautious when you want to consolidate your loan. Lots of lenders request for collateral, and you may need to use your home as a guarantee. If you are unable to settle the loan on time, you risk losing your home.
If you have a bad credit score, the interest rate may also be higher, and this means you will pay more.
You must only deal with a company that complies with FTC regulations. You should also check the accreditations of the company. The accreditations are displayed at the bottom of the company’s website.
One of the prominent accreditations is the one offered by the American Fair Credit Council (AFCC) formerly TASC. This council advocate for the rights of customers. A debt consolidation loan company can only be AFCC accredited if it complies with all the regulations of the FTC. This accreditation is renewed every year.
Another accreditation that you should look out for is that of the International Association of Professional Debt Arbitrators (IAPDA). This association provides certifications for debt specialists. The employees of the company need to be trained in debt management practices for the company to receive the IAPDA certification.
The United States Organizations for Bankruptcy Alternatives (USOBA) also offers certifications for companies that meet their rigorous certification processes.
There are certain information that the debt consolidation companies must disclose to you before you sign up with them. They must make you aware that you are still responsible for your debt. This is essential because debt collection companies may still call you to collect the debt. They must also tell you the length of the program, your consumer rights, and the cost of the program.
Companies are not supposed to charge you upfront for their services. There are also supposed to give you an estimate of the total amount they will charge for the duration of the service they will provide so that you don’t get any surprises.
Debt consolidation companies should also not put pressure on you to reveal your personal information.
You should also know that debt consolidation companies that promise to stop collection companies from contacting you are not entirely honest with you. Collection companies also have the legal right to contact you since your debt is not cleared yet.
Some debt consolidation companies will refer you to a credit counselor if your debt is less than $7,500, and it is unsecured. The certified credit counselor will discuss your income, expenses, and savings and help you to draw a budget. They will also help you to manage your finances by giving you personalized tips and guidelines.
More people are accumulating medical bills due to the high cost of health care. This is why many people have been asking if it is easy to consolidate medical bills? The answer is yes. You can consolidate medical bills just like you do with other types of bills.