SoFi^® vs SuperMoney

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For someone who's struggling to keep track of multiple loans or who wants to lower their monthly payments, consolidation can be a smart move. It can simplify their financial life and potentially save them money in the long run. It can also be beneficial for those who want to switch from variable interest rates to a fixed rate, providing stability and predictability in their payments.

How does loan consolidation work? In the first way, you need to apply for a consolidation loan through a reputable lender. They'll look at your credit history, income, and other factors to determine if you qualify. Once approved, they'll pay off your existing loans (or they'll send you the funds and it's up to you to transfer the payment), and you'll start making payments on the new consolidated loan.

Another way is to hire a company to negotiate with your current lenders. You make payments into an account that the service uses to strategically pay down your loans: maybe you can get one negotiated down from $10,000 to $6,000, which will be paid from what you've already put into the designated account, minus a fee based on the amount you saved. This stops you from having to take out yet another loan to pay off the ones you currently have.

However, loan consolidation might not be the best idea for everyone. For example, if you're already close to paying off your loans or if you have loans with really low interest rates, it might not be worth it. Additionally, if you're eligible for loan forgiveness programs or income-driven repayment plans, consolidating your loans could make you ineligible for these benefits.

Which option is the best to choose for loan consolidation? There are many good possibilities out there, so here are a few criteria to check out as you decide:

• Loan terms. One important thing to note is that when you consolidate your loans, the terms of the new loan may be different from your original loans. This means your interest rate, monthly payment, and repayment timeline could change. So, it's crucial to carefully review the terms and make sure you understand how it will impact your finances before moving forward.
• Available loan amount. Can the lender approve a new loan that will cover all of your existing loans?
• Extra benefits. Some providers of consolidation loans include perks like interest rate discounts when you set up autopay, or unemployment protection that pauses loan repayments if you lose your job. You may also want to choose a service that gives you credit counseling or other help, so that the new loan will be a long-term benefit for your overall financial well-being.
• Reputation. Choose loan consolidation with a provider that is known for offering top-notch customer service, with no ugly surprises during the application process or over the course of your repayments.

Ready to simplify your financial life with loan consolidation? The experts at Top Consumer Reviews have evaluated and ranked some of the most popular options out there today, so that you can streamline your payments, lower your monthly bills, or switch to a more manageable repayment plan.