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SoFi® vs LendingClub

Wednesday, July 17th

2024 Debt Relief Company Reviews

SoFi<sup>®</sup> Review 4 Star Rating


4 Star Rating
  • Debt relief through personal loans
  • Loans available from $5,000 to $100,000
  • Rates may include origination fees of up to 7%
  • Flexible repayment terms spanning from 2 to 7 years
  • Most loans funded same or next day
  • Available in all states except Mississippi
  • Live customer support 7 days a week
  • "A+" BBB rating
  • Thousands of 5-star ratings from happy clients

SoFi, with over two million members and $50 billion in loans, offers debt relief through personal loans ranging from $5,000 to $100,000. Repayment terms range from 2 to 7 years. Funds are typically available quickly, sometimes within a day. Signing up for autopay can lead to interest savings, and SoFi provides a unique job loss protection feature for extra peace of mind. Despite potential origination fees, SoFi's top-notch reputation, including an "A+" rating from the BBB and thousands of five-star ratings on Trustpilot, makes it a reliable choice for debt relief via loans that can be used to consolidate payments to creditors.

LendingClub Review 4 Star Rating


4 Star Rating
  • Debt relief via personal loans
  • Funds can be sent directly to creditors or to your personal bank account
  • Borrow up to $40,000
  • Terms of 2-5 years
  • No prepayment penalties
  • Origination fees of 3-8%
  • Available to residents of all states + DC
  • Funded $90B+ in loans for over 4 million members since 2007
  • "A+" rated and accredited by the BBB
  • Tens of thousands of 5-star reviews

LendingClub is a lender you can trust if you need a loan to pay off high-interest debt. You can borrow up to $40,000 and either have it deposited into your bank account or sent directly to your creditors. These debt relief loans are available nationwide, and after a short application process you'll be shown several options that meet your desired criteria for loan repayment term, monthly payment amount, and total borrowed. LendingClub does a fantastic job of taking care of its customers, with many repeat borrowers among the thousands offering this company a perfect 5-star score. While you'll have to go elsewhere if you're looking for credit counseling or debt negotiation/settlement, LendingClub is a great choice if all you need is a loan to get your finances back on track.

Who Provides the Best Debt Relief?

It's safe to say that, in today's economy, Americans are drowning in debt. From credit cards (a $6,000 balance per household, on average) to mortgages, from student loans to car payments, even unpaid income taxes and beyond, we're all feeling the pinch of inflation, the ongoing after-effects of the pandemic, and a myriad of other stresses on our wallets.

Fortunately, there's a solution. Debt relief programs can be a valuable resource for individuals struggling with overwhelming debt, providing a structured pathway to regain financial stability. Whether you're dealing with job loss, unexpected medical expenses, or simply overspending (we've all been there!), debt relief is out there.

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Debt Relief Company FAQ

Debt relief is a process that helps people get out from under their ever-mounting financial obligations. This can be accomplished through Debt Negotiation, Debt Settlement, Debt Consolidation or Repayment Plans, among other strategies.
You'll need to have a certain amount of debt to be eligible for debt relief, which varies according to which relief service you choose. Some require a minimum unsecured debt of $7500, while others specify that you need to owe at least $10,000. Also, some debt relief providers aren't licensed in all 50 states - so you may be eligible for debt relief but the service you're considering isn't available in your state.
Believe it or not, many debt relief services are free! Most providers give you a no-cost consultation, analyzing your financial situation and making recommendations tailored to your needs. But, there are some fee-based services, especially if you want someone to negotiate with creditors on your behalf.
Many of the strategies used by debt relief providers can be done on your own, yes. But, in the amount of time it would take you to get up to speed and learn what those strategies are, you could be paying hundreds (or thousands!) of dollars in interest. It's almost always a smarter financial move to have the experts do the work for you.
The first step is usually the complimentary consultation, where a representative will go over your debt situation and find out your goals, needs and timeframe. From there, it will depend on which approach you decide to take - but, for the most part, the debt relief service will be in charge of contacting your creditors and working out the details for reducing what you owe.
No two consumers are alike - and debt relief strategies vary as well. Some services offer relief through a personal loan, allowing you to pay off high-interest debt with a lower-interest arrangement, so naturally your situation will change as soon as your loan is funded and used to reduce your monthly payments. On the other hand, if your service is negotiating with your creditors to reduce or eliminate what you owe, that can take several weeks to months.
Most of the time, there isn't. A few debt relief services offer a 100% customer satisfaction guarantee, allowing you to cancel your plan without fees or penalties. Read the fine print of any contract before you sign up, so you'll know exactly what's promised - and what isn't.
Debt relief may sound too good to be true, but it's a legal, well-known method for reducing the debt burden faced by many consumers. Although some fly-by-night services pop up from time to time, most companies offering debt relief have been in business for a decade or longer. You can always check for a company's listing with the Better Business Bureau for further confirmation that it's a trustworthy option for debt relief.
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Continued from above...

Let's consider some of the ways that debt relief programs can be structured, so that you'll have an idea of which one might be best suited for your particular situation. First up is debt consolidation. This involves combining multiple debts into a single, more manageable loan with lower interest rates. It simplifies payments and may reduce the overall interest paid. Consolidation is usually accomplished through a personal loan: interest rates may be on the higher side compared with other types of borrowing, but still lower than what you're likely paying on a typical credit card balance. This type of debt relief doesn't necessarily come with any hands-on help: you apply for the loan and use it to pay down your high-interest debt, but that's about it. It might not be the best fit if you need help restructuring your finances or want advice on how to not get in over your head again in the future.

Next, you may have the opportunity to enroll in a debt management plan, or DMP. Offered by credit counseling agencies, DMPs involve negotiating with creditors to lower interest rates or waive fees. Participants make consolidated payments to the agency, which then distributes them to creditors.

A similar debt relief strategy is debt settlement, which involves negotiating with creditors to settle debts for less than the full amount owed. While this can significantly reduce debt, it may negatively impact credit scores and involve tax implications. You can attempt to do this on your own, or you can work with a service that works on your behalf.

But, there are a few things to be aware of with debt relief. Unfortunately, the industry has its share of scams targeting vulnerable individuals. Be wary of companies promising quick fixes or asking for hefty upfront fees. Always research companies thoroughly and verify their credentials. Also, enrolling in certain debt relief programs may negatively affect your credit score initially, and debt settlement in particular can have both legal implications and tax consequences. You may need to get the input of a financial advisor or attorney to make sure you understand all of the possible ramifications before you commit.

But, don't let that scare you away from debt relief as a whole. The right program can get you on the road to financial recovery, and there are plenty of trustworthy ones out there too. Here are some tips to help you make an informed decision:

  • Consultation. Many debt relief companies offer free consultations to assess your financial situation and recommend suitable solutions. Take advantage of these consultations to ask questions and clarify any doubts.
  • Services offered. Which approach does the provider take to debt relief? Are you taking out a personal loan, getting step-by-step guidance and counseling, or having your outstanding debts negotiated on your behalf?
  • Fees. Some companies may hide fees in the fine print or charge exorbitant rates for their services. Before signing any agreements, ensure you understand all fees involved and compare them across different providers.
  • Reputation. Take the time to research various debt relief options, comparing their pros and cons, and look at the overall sentiment from previous and current clients. Look for reputable companies with positive reviews and accreditations from organizations like the Better Business Bureau.

Debt relief programs can provide a lifeline if you're drowning in debt, offering strategies to regain control of your finances. However, it's crucial to approach them with caution, thoroughly researching options, watching out for red flags, and selecting reputable providers. The experts at Top Consumer Reviews have evaluated and ranked some of the most well-known options out there today, to help you embark on the journey towards a debt-free future.

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