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If you're like many people, you've got lots of payments throughout the month - credit cards, student loans, personal loans, the mortgage, and so on - and keeping track of them can be difficult. Plus, you're likely paying higher-than-average interest rates on some of your loans, making it even more costly when you accidentally make a late payment - or worse, when you forget one altogether!
Loan consolidation offers a smart, affordable strategy for simplifying your finances and saving money. How? By combining all of your outstanding loans into a single payment, probably at a much lower interest rate than some of your high-APR loans. Typically structured as a new loan, the funds are used to pay off what you owe, leaving you with one simple monthly payment. The best loan consolidation providers include financial counseling in their services, to help you avoid getting into another difficult financial situation in the future.
Wednesday, June 7th
National Debt Relief has helped over 500,000 people to consolidate their loans by negotiating much lower payments with creditors. You'll pay a low monthly fee based on your total amount of enrolled loans while the company goes to work on your behalf. You won't find any other loan consolidation option with over 80,000 five-star reviews from satisfied clients! National Debt Relief should be the first place you go to schedule a free consultation and get on top of your finances.
Credit.org has provided more than five million financial coaching sessions in the nearly 50 years they've been in operation - and most of their services are absolutely free. You'll get a complimentary consultation to analyze your finances and determine which steps you should take to improve your situation, which may include loan consolidation or other fee-based programs, but there's no obligation to sign up. Credit.org gets high marks from clients for being stress-free and helpful, and it's one of our favorite resources for anyone who needs financial advice.
Upstart knows that a credit score isn't the only factor to consider when evaluating your loan consolidation application. They employ a sophisticated artificial intelligence process that looks beyond just your credit history - making it more likely that you'll be approved for your loan. Happy customers typically receive their money very quickly, and praise this service for being easy and affordable.
For over 25 years, CuraDebt has helped people get on top of what they owe through loan consolidation and other proven strategies. You only pay fees when your loans are resolved, and you'll still save a lot of money. The initial consultation is complimentary. While this is still one of our favorite resources for trustworthy loan consolidation, there are 16 states where residents will not be eligible for CuraDebt's services.
Reach Financial specializes in loans for the purpose of loan consolidation. The company has a great reputation, both with the BBB and its clients. We wish they were a little more forthcoming about what a prospective borrower can expect, especially with regards to loan amounts, terms, and APR's. Still, we see bright things ahead for this relative newcomer.
LendingTree is an online loan marketplace for every type of borrowing, from auto loans to credit cards and beyond. You can use this service to easily compare offers from up to five lenders at a time, helping you access the best rates and terms for your personal loan. We love the detailed information provided on each lending partner, with thousands of client reviews to help determine which one is the best choice for a personal loan. LendingTree has a great reputation and is a trustworthy option if you want to use a referral service to research and secure a loan.
SoFi has some big benefits compared with other options for consolidation loans: the lowest average interest rates, assistance (and forbearance) if you lose your job while repaying a loan, and even occasional sign-up bonus money. But, an increase in the number of complaints from SoFi clients, describing negative experiences specifically with the customer service department, gave us some cause for concern.
SuperMoney offers comparison "shopping" for many financial products, including consolidation loans. They offer funding through just over a dozen partners, and you can see detailed information and reviews about each one before filling out your application. SuperMoney hasn't been around as long as some of the referral platforms we evaluated and so there's not as much customer feedback yet. This is a good way to gather information about personal loans you might be eligible for, but you'll still have to complete your application directly with the lender you choose.
LendingClub used to crowdfund all of their consolidation loans through investors. But, after undergoing some changes, their lending is now structured more like a regular bank. They offer fixed-rate loans with repayment terms of at least 36 months, and recent customer feedback is almost universally positive. You should have a good experience if you choose to get a consolidation loan here, but we're holding back a higher recommendation until the BBB provides an updated rating for LendingClub.
Payoff connects you with one of eight lenders in their network, getting you a personal loan so that you can consolidate loans by paying off your high-interest credit cards. While the BBB gives the company high marks, feedback from clients is much more mixed. Some have a great experience, while others describe a frustrating process from start to finish. There are more hassle-free options available if you want to pay off your outstanding loans.
American Debt Enders doesn't offer loan consolidation per se. Instead, they work on disputing loans that have been sold by your creditors to third-party collections. Your initial consultation is free, and any fees will depend on the amount of your loans and the strategy put in place to address it. This service doesn't offer as many options as other providers, and they're not as professional either. You'll probably have a more satisfying experience with another loan consolidation program.
Debt Consolidation Care has been around for nearly 20 years and has an "A+" rating and accreditation from the BBB. However, the service isn't as smooth as many rival providers, and DCC doesn't make it obvious that they'll be handing you off to a fee-based loan consolidation service for counseling. There are definitely more robust options out there.
Will you qualify for a loan consolidation plan? That depends. There are a variety of approaches to consolidation, and some services require you to have a minimum amount of outstanding loans to be eligible for their programs. If you choose a plan that just involves getting a new loan to pay off your debts, you'll have to meet the criteria established by the lender, which may include a credit score threshold, income requirements, or using a co-signer on your application.
With so many financial institutions offering loan consolidation services, it can be challenging to determine which one is right for you. Fortunately, the vast majority are trustworthy and have been helping consumers straighten out their finances for years, even decades. As you consider which one might be the best fit for your situation, here are three criteria to bear in mind:
TopConsumerReviews.com has evaluated and rated the top loan consolidation options available today. We're confident that these reviews will help you sort through the possibilities and choose the best loan consolidation package for your needs!
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