Tuesday, December 3rd
2024 Debt Relief Company Reviews
LendingClub
- 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
Back in 2007, LendingClub entered the financial industry with a novel concept: use peer-to-peer lending to benefit everyday investors and borrowers alike. Although the company has moved away from that investment model and now serves as a more traditional banking institution, there's been no loss in popularity: over 4 million clients have accessed $90+ billion in funding through LendingClub.
Offers loans to pay off higher-interest debt
As you might guess, this institution approaches debt relief through personal loans. You can borrow anywhere from $1,000 to $40,000, with terms spanning 2-5 years and no prepayment penalties. Just be aware that their rates include origination fees of 3-8% that will be taken from the proceeds of your loan. That means that if you need $20,000 to pay off a particular debt, your loan amount will need to be higher to account for the fees, so that you still wind up with that $20K.
Can pay your creditors directly
While you won't get any credit counseling with this particular debt relief option, LendingClub does make it a little easier to use your loan to pay off your creditors: unlike some institutions that provide personal loans to consolidate debt but leave the actual transfer of the funds up to you (which may not be a good idea if you're tempted to use the money for some other purpose!), LendingClub offers to send your loan funds to the creditor(s) you designate in the loan process. It's not required, and you can still get all of the loan proceeds deposited to your bank account instead, but we appreciate that extra layer of help for people seeking debt relief.
Available nationwide
It's easy to find out if you'll qualify for a debt relief personal loan through LendingClub. These loans are available to residents of all 50 states and Washington DC, so there's no residency requirement. Once you click on "Check Your Rate”, you'll enter the basic details that allow LendingClub to verify your identity, perform a soft pull on your credit, and make a preliminary loan offer: name, email address, street address, phone number, annual pre-tax income, desired monthly payment amount, and so on.
Get matched with several loan options
Once LendingClub has been able to confirm who you are (they won't even ask for your SSN unless they can't locate your credit profile with your name/phone/DOB/address details), you'll be able to see any loan offers that match your criteria. If you see a loan with terms that you like, you can continue on to the full application (which does involve a hard pull on your credit). Pay attention to the To-Do checklist in your dashboard: you'll be asked to submit documents to get your loan approved (like verification of income), and the quicker you get those done, the sooner the funds will be sent to your bank account or your creditors (or both).
Very positive feedback from clients
Customers are generous with their praise for LendingClub, as demonstrated by the impressive 5-star ratings left for the service by over 4,800 individuals on Trustpilot. Among these satisfied reviewers are loyal clients who have found significant value in LendingClub's straightforward loan solutions. They applaud the platform for its prompt loan processing, user-friendly application process, and competitive rates and terms when compared to other lenders.
Commitment to excellence
Additionally, LendingClub's commitment to excellence is underscored by its pristine "A+" rating and accreditation from the Better Business Bureau. Emphasizing transparency, LendingClub openly shares all feedback on its own website, reflecting an admirable average rating of 4.83 out of 5 stars across more than 68,000 unfiltered and authentic reviews on its platform. As you browse those comments, you'll see that "debt consolidation/refinance” is one of the most popular reasons that people use LendingClub; many reviews come from people using LendingClub for the second, third, or even fourth time to get relief from their debt.
Good service for consolidating debt with a loan
While LendingClub doesn't offer a full suite of services for people seeking debt relief (like credit counseling or debt negotiation), they're a trustworthy option if you know that a loan is all it'll take to get you back on the right track. We give the lender props for knowing that not everyone is going to have the willpower to send the money to the creditors on their own, and thus making it easy to avoid temptation by having the loan proceeds go right where they need to. LendingClub has a fantastic reputation, and we'd say it's well above average when compared with similar options for debt relief loans.
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The 10 Best Debt Relief Companies
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.
Debt Relief Company FAQ
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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