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Best debt consolidation loans of 2024

Posted on by Truedebt Freedom

Best Debt Consolidation Loans of 2024

A loan that is taken from any of the lenders at comparatively lower interest rates for paying off multiple current or outstanding loans is known as a debt consolidation loan. With the aid of this loan, an individual or a business can attain financial stability as it can consolidate multiple loan payments into one single monthly loan payment. 

Some of The Top Debt Consolidation Loan Companies in the USA are listed below: 

S. No.CompanyEst. APRLoan TermLoan AmountMin. CS
1True Debt Freedom6.99-35.992-7 Years$10k – $100k690
2Discover7.99-24.993-7 Years$2.5k – $40k660
3Happy Money11.72-17.992-5 Years$5k – $40k640
4Lending Club8.98- 35.992-5 Years$1k – $40k600
5Achieve8.99- 35.992-5 Years$5k – $50k620
6SoFi8.99-29.992-7 Years$5k – $100k710
7Upstart7.80- 35.993-5 Years$1k – $50k300
8Light Stream7.49-25.492-7 Years$5k – $100k695
9Universal Credit11.69-35.993-5 Years$1k – $50k580
10Avant Personal Loan9.95- 35.991-5 Years$2k – $35k550
11Prosper8.99-35.992-5 Years$2k – $50k560
12Prosper8.99-35.992-5 Years$2k – $50k560
13Best Egg8.99-35.993-5 Years$2k – $50k640
13Citi10.49-19.491-5 Years$2k – $30k720
14Lending Point7.99-35.992-4 Years$2k – $30k680

As per the above represented data and information, the Best Debt Consolidation Loan providers in different categories are as follows: 

Upgrade

The borrower who has a credit score as low as that equivalent to 580 can access Upgrade as an option of the lending partner.

Happy Money

By selecting Happy Money, the borrowers will get the best option for flexible repayment terms. Borrowers can choose this for consolidating their debts as it provides loans in the range of $5k to $40k for the term of 2 years to 5 years. 

 

Achieve

This lender can facilitate the borrowers in directly paying off their debts of credit cards as it offers options of directly paying off the creditors and also offers rate discounts. 

Lending Club

This lender will act as the best option for peer-to-peer lending, as it offers loans for debt consolidation at the maximized limits and flexible requirements for qualification.

Light Stream

If you are searching for a lending partner with lower interest rates, then Light Stream is the right choice. As it provides competitively lower interest rates which can ultimately be the low-cost option for the loan borrower. 

True Debt Freedom: If the borrower is in search of a partner that can offer a higher amount of loan, then True Debt Freedom can be the best option for them. It provides loans that range from $5k to $100k. It can be the best option for individuals or businesses who want to consolidate a huge sum of money or debt. 

Universal Credit: This lending platform acts as a comparing platform between the multiple offers 

Discover: This lender is the best option for people who can repay the amount in 30 days as if done so then it will not charge any interest. 

Citi: This lending partner can be selected in order to get the best personal loan for debt consolidation. The offerings made by Citi come with Zero late payment, application, prepayment, and origination fees. The loan taken through Citi will be of lower cost as it also offers low maximized APR and multiple discount options on loans.

How to Get a Debt Consolidation Loan

Posted on by Truedebt Freedom

In the current situation, it is becoming very tricky for an individual to manage their finances. Continuous piling up of expenses, debts, bills, etc. is becoming overwhelming and hard to manage for everyone. So, to manage all this hustle, individuals are advised to get a debt consolidation loan.

The process of combining all the outstanding bills, debts, etc. into a single loan at a comparatively lower interest rate is known as debt consolidation. Adoption of this strategy will not only facilitate you in managing finances smoothly but will also let you save money during a longer period. So, if you want to consolidate all your debts into a single one, then here I’m providing you with a step-wise guide for the process:

Assess your debts: First of all, assess all your current outstanding debts, be it credit card bills, personal loans, or any other dues. Sum up the total amount of debt along with the interest rates you are paying on them.

Check your credit score: This step is vital as most lenders consider the credit score prior to approving the debt consolidation loan and deciding the interest rates. So, it is very important to know your position before applying for a loan. You can review your credit report for any discrepancies by getting it free from major credit bureaus.

Research about lenders: Now, research the market for a reputable lender that provides loans for debt consolidation. List out multiple suitable lenders then to get the best option compare their loan terms, fees, and interest rates on loans. For getting a perfect lender, you can consider online lenders, as well as traditional banks also, as they do have variable rates and requirements.

Calculate your budget: Now, to select an appropriate loan term and monthly budget that fits your pocket, you have to calculate your budget. For calculation, you can consider factors such as vital expenses, saving goals set by you, and your monthly income.

Collect required documents: After that, you have to collect the necessary documents that will be needed by the lenders to get some information about you such as your employment history, income proof, and other fiscal documents. The major requirements documents may include but are not limited to bank statements, tax returns, and pay stubs. This step will facilitate you in streamlining your process of application.

Apply for the loan: Now, it is time to apply for a debt consolidation loan online. You can submit your online application for a debt consolidation loan, once you select the perfect lender as per your requirements. During this, you will have to provide information about your income, outstanding debts, and fiscal history. In the market, some of the lenders will provide you with offers of pre-approval, this will let you get an ideation about the interest rates and the loan amount you will be receiving.

Review the loan terms: As you have received all the terms and conditions of the loan from your lender, so it is time for you to go through them and review them carefully. While reviewing the terms and conditions of the loan you need to check loan terms, fees involved, and your interest rate. It is advised to get a proper understanding of all the terms and conditions before accepting the loan offer from the lender.

Consolidate the debts: Once your loan gets approved, utilize the funds provided by the lender to pay off all your existing and outstanding debts. After the consolidation, you now have only one payment to be managed every month. This will facilitate you in potentially depriving your interest rate and streamlining your finances. This is the fastest and safest method to get a debt consolidation loan.

Monitor the progress: So, it is now time to constantly keep a check and monitor the progress for paying off the loan of consolidation. You can consider keeping track of savings on interest, balance remaining, and improvements in credit score over the period of time for the process of progress monitoring.

FAQs

No, it is easier to get a debt consolidation loan if you have maintained a good credit score and have a stable income. On the contrary, it can become challenging for individuals who possess a higher ratio of debt-income and a bad credit score. 

The basic requirements for getting a debt consolidation loan must include a stable income, manageable levels of debt, and a good credit score. Along with that, some lenders might also check your employment history and ratio of debt to income.

Yes, initially you can observe a dip in the credit score as lenders conduct a hard credit inquiry and you get a new account of credit. But with the passing of time and timely repayment of loans, your credit score will get improved.

Yes, debt consolidation loans are provided by many banks but the terms of the loan and the criteria for eligibility varies for each bank. That is why it is advised to compare the different options and select a suitable and appropriate one as per your requirements.