July 9, 2020

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Best Debt Consolidation Programs

Item: Best Debt Consolidation Programs for July 2020 - Debt Consolidation Reviews
Rating: 5
Author: Top Consumer Reviews

Debt consolidation can make a lot of sense for people with a high level of debt or paying a lot of bills. In these tough economic times many Americans are faced with significant credit card debt and are looking for help reducing their monthly payments. Debt consolidation is a method often used in this situation and helps consumers simplify their budget.

After consolidating their debt, many people report a reduced sense of stress. This is especially true when debt consolidation allows the consumer to better meet their obligations and get back on their feet financially. It's important to remember that after debt consolidation, consumers should closely monitor their finances and avoid taking on any new debt.

Continue reading below reviews

2020

Debt Consolidation Reviews

NATIONAL DEBT RELIEF

National Debt Relief provides customers a professional and low stress experience as well as debt consolidation options to meet their financial goals. Whether it's debt consolidation or another debt-reducing method, National Debt Relief works hard to determine what will work best for each individual customer. A high BBB rating, professional staff, and a customer satisfaction guarantee pushes National Debt Relief to the top of our list. Read More...

CREDIT.ORG

Credit.org is a non-profit credit and debt counseling service with a 45-year plus history of excellence and integrity. Best of all, their financial coaching is available at absolutely no charge. It is important to understand how credit.org is different than other companies in the debt services space. Credit.org provides an entirely free personal financial review along with an action plan that empowers you to make smarter decisions about your options to become debt free. Additionally, they can help you reduce your debt through debt management plans (where they may have the ability to reduce the interest rates you pay). Read More...

CURADEBT

CuraDebt brings a long history of helping customers with debt consolidation and a host of financial solutions to help eliminate debt. Their staff is not only professional and confidential, but you create and maintain a relationship with the same individual throughout the process. CuraDebt is worth your consideration for debt consolidation needs.
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SOFI

SoFi (pronounced "SEW-fi", as in "SOcial FInance") is one of the newest sources of personal loans on the market. Their straightforward application process, user-friendly website, and lack of fees make them a very strong contender. We were especially impressed by their unemployment protection feature, which can allow members to suspend repayments on a loan when they lose their jobs. SoFi is definitely a lender to consider if you're looking for a personal loan. Read More...

UPSTART

Upstart is a professional and organized social lending platform focused on helping people achieve their financial goals. Their loan process is quick and efficient and considers many factors including your education, job history, and credit score. With a solid reputation for success, customers can find answers to many of their financial questions because the site clearly describes how their loans work. They also provide education for those seeking guidance for future financial endeavors. Read More...

LENDING TREE

While LendingTree does not fund debt consolidation loans itself, it does connect borrowers with a wide range of potential lenders and allows customers to negotiate directly with those lenders if they wish. Many of those lenders work with people who have less-than-perfect credit, making LendingTree a great one-stop shop for researching the best debt loan for every kind of borrower. Read More...

CREDIBLE

If you'd like to compare rates across multiple lenders with a single application, Credible is a great resource for debt consolidation loans. That kind of one-stop shopping saves you time. Plus, Credible has a strong reputation and gets high marks from customers. Just remember that ultimately your consolidation loan will be funded through a third-party lender, so you'll need to read through each of your loan offers to get the fine details.
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LENDINGCLUB

LendingClub provides personal loans in the amount of $1,000 to $40,000 and may offer more affordable lending rates than a traditional debt consolidation loan. LendingClub is a leader in facilitating personal loans between borrowers and individual lenders. Read More...

AVANT

Avant's relative new history as a lending platform may make them seem less attractive to some prospective debt consolidation customers. However, this online lending platform doesn't charge any fees for loan prepayments, and customer service is available 7 days a week. With loans ranging from $2,000-$35,000, borrowers who are looking to get their money as soon as the next business day‡ should strongly consider Avant.
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NET CREDIT

NetCredit is a subsidiary of a major financial lending company and specializes in unsecured personal loans between $1000 and $10,000. The process of completing an application is online and easy to follow. NetCredit works with customers with varying credit scores and looks at more than just credit history to either accept or deny a loan. The biggest downside to working with NetCredit is that they only currently service a handful of States.
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ONEMAIN FINANCIAL

OneMain brings to the table a long history of providing personal loans and a strong BBB rating. However, the website lacks important details and we found numerous accounts of expensive interest rates and fees.
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LIFELOANS

If you're looking for a personal loan directly from a lender, LifeLoans will not be on your list. As a borrower-lender matching service, they specialize in pairing applicants with lending companies – although they can't accept applications for loans from residents of 4 states.
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Continued from above

Finding the right debt consolidation program can be confusing for many individuals. Thankfully a number of reputable financial companies allow consumers to search and apply for debt consolidation online, from the convenience of their home. This increases the chances of finding the right debt consolidation program that meets their needs.

Before applying for a debt consolidation program, you should consider these important points:

Method. What options will the company provide you with in their debt consolidation program?
Cost. Does the company charge a fee to review your finances and identify financial solutions? What are the details you can anticipate with your debt consolidation program?
History. Does the company have a long history of successfully helping clients with their financial needs? Is this a company you can trust with debt consolidation?

TopConsumerReviews.com has reviewed and ranked the best Debt Consolidation programs available today. We hope you find these reviews helpful in finding a debt consolidation program that meets your financial needs!

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What Is a Debt Consolidation Loan?

If you’re struggling with credit card payments, medical bills, and other debts, you’ve probably wondered if there’s any hope of relief. Many people in your situation turn to debt consolidation loans for their light at the end of the tunnel.

So, what exactly is a debt consolidation loan? This kind of loan means that you work with a third-party lender, who gives you a loan big enough to let you pay off all of your debts right away. Moving forward, your payments only go to the lender - not to the credit card company, the hospital, and so on. Because all of what you owe is now rolled into a single payment to a single lender, that’s why it’s known as “consolidating” your debt: putting it all in one place.

How do you know if you’re a good candidate for this form of debt relief? First, consider what kind of debt you have. If it’s mostly credit cards, you may be the ideal applicant for a debt consolidation loan. Think about it: how easy is it to rack up charges on your main card, your favorite store card, and the card you let your teenager, partner, or friend use - only to discover, to your horror, that you owe way more money than you can possibly pay off quickly?

Second, take a look at how much you owe. If it’s high enough that you’re having a hard time making payments, but low enough that you can still qualify for a personal loan, you’re probably on the right track with considering a debt consolidation loan. There are ways to get debt relief on larger owed amounts, but they usually differ from traditional debt consolidation loans.

Debt consolidation loans offer some pretty significant advantages. One of the biggest is the lower interest rates. Have you looked at your credit cards’ APRs lately? Chances are good that you’re paying anywhere from 16.99% to 24.99% - or higher! If you’re able to qualify for a debt consolidation loan that only charges an interest rate of 7%, you’re automatically saving money.

Another big perk is the convenience. Have you ever missed a payment because you simply forgot when it was due? When you have lots of credit cards, it can be far too easy to rack up late payment fees. With a debt consolidation loan, you make one monthly payment and that’s it.

Finally, getting a debt consolidation loan from the right provider can get you access to tools for managing your spending wisely in the future. How? The best lenders work with you to develop a plan for your finances going forward: how to spend less than you earn, how to avoid unnecessary debt, and even how to manage your money so that you don’t wind up with unpaid bills.

While debt consolidation loans aren’t right for every consumer, they represent a solid path to financial stability for many people. Especially for those with lots of credit card debt who aren’t sure how to avoid getting themselves in trouble again in the future, these loans can help them get out from under the burden of crushing monthly payments and ever-increasing interest rates - all while helping them learn how to be smarter with their finances in the future.

When is a Debt Consolidation Loan a Good Idea?

Does this sound familiar? You think you’re doing okay with your bills, and then something unexpected happens - a car repair, a trip to the doctor, a flight home for a funeral - and on the credit card it goes. And, it’s the start of the school year, so your department store card gets a workout when the kids need new clothes (and maybe a little something new for you too, why not?). Then there’s all of the everyday expenses like groceries, gas and that visit to your favorite coffee shop.

You open your email and find a notification: missing credit card payment. What?! As it turns out, you forgot about the electronics store card when taking care of your bills. Now you’ve got a late fee and interest payments. But, no problem. For all of those other cards, you’ll make the minimum payment on time and be just fine...until that week where your paycheck is smaller than you expected, and now you can’t even make the minimum amount.

How can you break the cycle? If you’re one of the millions of Americans who carries a high balance on more than one credit card every month, you could be a good candidate for a debt consolidation loan.

How does it work? You get a loan from a third-party provider that pays off every single one of those credit cards - at the same time. From that point forward, you have only one payment to remember: the monthly payment to the provider of your loan. The benefits are obvious: with only one debt to pay, the chances of forgetting it or submitting late are much lower, keeping you in good standing and helping to improve your credit score.

But, there are other reasons why getting a debt consolidation loan is a smart choice. The biggest one is that it saves you money - not just in late fees, but in interest. Your credit cards probably have a very high rate, maybe even over 20%! If you qualify for a debt consolidation loan, you could see interest fees as low as 5%, which gives you an instant savings compared to your credit cards. And, because your loan has a fixed term, you know your payments are finished once you’ve repaid everything - unlike credit cards, where you could be making minimum payments indefinitely, all while paying far more than you would have if you’d just made your purchases in cash (or paid off the card in full every month). Of course, this assumes that you don’t go back to racking up debt once you’ve paid off your balances!

Finally, many of today’s top providers of debt consolidation loans genuinely want to see you succeed financially. So, as part of the process of getting your loan and over the course of your repayments, they work with you to develop strategies to avoid getting yourself into excessive debt again. Some of the tools available might include budget apps and spreadsheets, lessons on credit scores and how to improve them, and how to use cash as a way of living within your income.

So, in short, a debt consolidation loan is a good idea if you:

Have a considerable amount of credit card debt
Struggle to make your payments
Have credit that is good enough to be eligible for a low-interest loan
Are ready to change your spending habits so that you don’t wind up in debt again
Have enough income to make the payments on your consolidation loan

If this applies to you, consolidating your debt with a loan could represent a path to financial security and freedom from worry over your bills from month to month.

What Can I Do With The Extra Money From a Consolidation Loan?

So, you’ve heard about debt consolidation loans and you’re thinking they sound like a great way to get back on your financial feet. You could be right! But, before you start fantasizing about using your loan for a trip to Tahiti or for one of the most cutting-edge TVs on the market, let’s talk about how to use that money.

First, it’s important to understand that the purpose of a consolidation loan is to eliminate your debt - or at least change it into something that is more beneficial to you. You get a loan like this when you have multiple debts to pay every month - a couple of credit cards, a car payment, and so on - and you want a way to not only simplify but also save money. You take out a loan that can pay off your balance in full, preferably at an interest rate that’s significantly lower than what you have on those other debts. Given that many credit cards charge interest rates anywhere from 18.99% to over 24%, it’s not hard to see how a single payment at a rate of 7% could take much less from your wallet!

In other words, while you could use your consolidation loan money to go on that extravagant vacation or even over the hill and through the woods on a visit to Grandma’s, you won’t be helping yourself financially. Instead, you should use the loan to pay off your debts, starting with the payments that have the highest interest rates and working your way through what you owe until you’ve got it all paid in full.

Second, recognize that debt consolidation will only work for you long-term if you stop getting into debt in the future! When you take out a debt consolidation loan, you’re actually adding to your debt with the purpose of making it more affordable and manageable: paying off credit cards in full, reducing or paying off your medical bills, and so forth, so that hopefully the only debt payment you have from month-to-month is that consolidation loan. However, if you keep racking up charges on your credit cards, you’re jumping right back into what got you in trouble in the first place!

It can be extremely tempting to think of your consolidation loan as “extra” money, but you should avoid using it for any other reason than to pay down your debts. So, before you start dreaming of all of the ways you’d like to spend it, sit down and make a list of all of the debts you’d love to never have to pay again. Maybe it’s your favorite credit card with the high limit (and the high interest rates to match). Or perhaps you’d be really glad to pay off your car and get the title released by the bank. Picture yourself getting a statement that has a zero balance, and how great you’ll feel knowing that you’ll never get that bill (or a late payment warning!) ever again.

With that list in hand, you’ll know exactly how to use the money from your debt consolidation loan. And, better yet, you’ll know that you’re on the road to financial stability, especially since you’ll work hard to avoid getting into debt in the future.

3 Questions to Ask When Considering a Consolidation Loan

Many Americans find themselves drowning in debt. The average household carries over $8000 in credit card debt alone, and most people face financial struggles when trying to make car payments, pay medical bills, and everyday expenses. Plus, it’s easy to get in over your head very quickly when you have more than one credit card - and when you have a hard time saying “no” when you see something at the store that you really want!

Debt consolidation loans are growing in popularity as a way of getting relief from the weight of multiple payments and high interest rates. These loans give you the money you need to pay off all of your debts at once: your credit cards, doctor bills, even car payments and more.

Sounds great, right? That depends on several things. If you’re considering a consolidation loan, here are three questions you should ask.

Will it save me money?
The whole point of a debt consolidation loan is to be better off financially than when you started. You need to do a careful evaluation of your current situation. How much debt do you have? What are the interest rates you’re paying for your various credit cards, auto loans, and any other debts you have? You won’t know if a consolidation loan is a good choice if you don’t know what you’re already paying.
You also need to look at the term length of your current debts. Yes, it sounds like an automatic savings if you go from credit cards charging over 18% in interest to a consolidation loan that only charges 8%. But, your loan could have a term of five years - and if you can pay off your credit card in 6 months, are you actually saving anything? Do the math. It matters!
Will I qualify?
Unless you’re putting something down as collateral (i.e. a secured loan), any lender will look at your credit history to determine if you’re eligible for a consolidation loan and if so, at what interest rate and terms. That’s where the paradox happens: you need good credit to get a consolidation loan, but chances are high that if you have a solid credit history, you don’t need consolidation!
You don’t risk anything by working with a lender to see if you pre-qualify, but prepare yourself for higher interest rates or collateral requirements if your credit score isn’t fairly decent.
Do I have an effective plan for staying out of debt?
As mentioned earlier, the reason for getting a consolidation loan is to reduce and/or eliminate debt. Frankly, the reason you’re in debt probably has something to do with your spending habits - unexpected expenses like car repairs and medical bills notwithstanding. If you consolidate your debt by taking on a loan but continue to put more on your credit cards than you can pay in full every month, you’ve just added to your debt problem - because you’ve still got credit card payments, and now you have loan repayments on top of that.
Fortunately, there are reputable providers of debt consolidation loans who work with you to create a plan for your financial future - and that’s included as part of their lending process. Whether you need help setting up a budget, analyzing your income, or deciding if you need credit cards at all, you’ll find many of those resources at your fingertips if you choose your debt consolidation lender carefully.

Debt consolidation loans have been successfully used by many people to pay off high interest rate debt, simplify monthly bills, and to get on more secure financial footing. Is it right for you? Take the time to answer those three questions for yourself before deciding if it’s an option that’s going to help you both now and down the road.

Can I Get a Consolidation Loan If I Have Bad Credit?

For people with piles of credit card debt, medical expenses, car payments and other expenses, it can be frustrating and scary figuring out how to pay the bills every month. Debt consolidation loans are often held out as a solution that can fix everything by lowering interest rates and simplifying a lot of debt into a single monthly payment.

The good news is that, for the most part, that’s all accurate. These loans make it possible for many individuals to get back on track financially and pay off several different debts all at once. But, there’s a downside: not everyone qualifies for a debt consolidation loan. If you have less-than-stellar credit, you could find yourself up against the same issues you’d have with any other loan: you get turned down because you’re viewed as being at risk of not paying it back.

It probably feels like a paradox: you need a debt consolidation loan to pay off your debt and build up a better credit history, but you won’t be eligible unless you already have a better-than-average credit score. Is all hope lost if you have bad credit and you want a consolidation loan?

Fortunately, you may still be able to take advantage of debt consolidation, even if your score could use some work. Be aware that it’s not going to be as easy for you, but there are options. Here are several things to look for, to find a lender that is willing to work with your particular situation.

First, look for a lender that will consider more than just your credit score when determining your eligibility for a debt consolidation loan. While it’s true that most traditional lenders focus heavily on your credit history, some of the newer partners on the market also factor in your income, education, and job history to qualify you for a loan.

Next, determine if you’re willing to offer up collateral to secure your consolidation loan. Some lenders will lend you the money if you “secure” it with your car, home or other significant asset. Of course, this is a much riskier strategy - because if you default on your consolidation loan, you have a lot more to lose!

Finally, analyze your current debt situation and figure out how much you’re paying in interest. Some lenders have no problem with issuing consolidation loans to people with bad credit - but they charge really high interest fees in exchange for taking on the risk. Still, depending on the rates you’re already paying, you could still save money if the consolidation loan has interest rates that are lower. But, you absolutely need to do the math to determine what rate would make sense, so that you don’t wind up actually spending more on interest with your debt consolidation.

In summary, it is possible to get a debt consolidation loan if you have bad credit. However, you’ll probably have to work a little harder to find a lender that will take into account your full financial picture, and to ensure that any loan you accept will genuinely save you money in the long run. It’ll take some effort, but it could be well worth it if it helps you simplify your debt situation, reduce your interest rates, and develop a plan for staying out of debt in the future.

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