Best Loan Consolidation Companies | BankruptcyHQ
If you are struggling to pay your debts, the best debt consolidation loan companies will help. They will take your existing credit more manageable ones and combine them into one loan. This will streamline your finances and allow you to manage your finances.
These loans are likely to have a lower interest rate than any previous agreements, which will help reduce your monthly payments and overall debt burden.
A good credit rating will make it easier to get rates and terms that are more favorable. Lenders view you as a lower risk and can offer you better terms. However, bad credit borrowers with better credit ratings can still get debt consolidation loans.
Although the rates will be higher, there are still options to help make your debt more manageable. However, it is a good idea to work on your credit score before you apply for loans.
Whether you are looking for debt consolidation loans for poor credit or the best terms possible, we can help. This list highlights the top debt consolidation companies with various needs, including those that deal with large amounts of debt and the ones with the highest service ratings. It also highlights the most outstanding company overall.
You can choose from any of these options to solve your debt problems. However, if it doesn’t work, you may need to look into other options. Debt Settlement may be your next step. Learn more about Debt Settlement vs. consolidation or look into debt counseling if additional support is needed.
1. National Debt Relief: Best Debt Consolidation Company Overall
Since 2008, National Debt Relief has offered debt relief. It is our preferred debt consolidation and debt settlement firm. This debt consolidation service is easy to use and outstanding debts they wish to eliminate.
National Debt Relief’s outstanding customer rating is what makes it stand out. It has received a steady stream of positive ratings from people who have used the service, and their debt problems have been resolved.
The loan amount can vary from $2,000 to $35,000, and payments can be made over 24 to 60 months. Your credit score won’t be affected by the pre-qualification process. The downside is that you won’t find the specific terms of your loan on the website.
You’ll need to talk to someone to get started to see how National Debt Relief could help you. You won’t regret calling the National Debt Relief phone number, as they offer outstanding debt consolidation loans and service.
2. Find the Best Debt Consolidation Loan Companies
Discover offers a well-thought-out and straightforward debt consolidation solution. However, it has outstanding customer support, which makes it the top debt consolidation company overall.
It is easy to apply, you can manage your account online with debts over the phone, there are no charges, and you can see the rate Discover will offer without affecting credit scores. The support resources are great too. With the 30-day money-back guarantee, you can cancel your loan at any time if you find a lower rate elsewhere. You can also choose to have Discover handle the payments to your creditors. This should reduce stress levels.
A maximum loan amount of $35,000 may not be sufficient if you have higher debts. However, a good credit score will help you secure a lower rate. If you are looking for a simple debt consolidation service and a lender that seems to be interested in your best interests, Discover is the right choice.
3. Marcus by Goldman Sachs: Best Debt Consolidation Loan Company For People with Good Credit
Marcus by Goldman Sachs should be the first company to consolidate debt for those with a good credit score. Marcus offers much more than that, such as an eligibility checker and a simple application process.
You can also save time and stress with the free Direct Payment option. This allows funds to be sent directly to as many as ten credit card companies. Although everything can be done online, it is possible to call for assistance if needed.
You will need to find other options if your debts exceed $40,000, but you must fit the criteria of Marcus. Marcus also offers a comprehensive debt consolidation program that is tailored to those with better credit scores.
4. InCharge: Best Debt Consolidation Company to Financial Education
more than a debt consolidation company. What makes it stand out is the amount of effort it puts into helping people get out of debt and not return to it. InCharge offers a credit counseling service and a variety of educational programs to help people manage their debt better.
This debt consolidation proposal is slightly different than the usual. You agree to pay InCharge one monthly payment. This is sent to creditors. No new loans are taken out. Counselors negotiate lower interest rates with credit card companies.
It is possible to become debt-free in three to five years. There are no credit requirements because you aren’t taking out loans.
InCharge is not a for-profit organization. However, there is a setup fee and a monthly cost. This should be considered about the possible interest savings. InCharge is the right option if you are looking for a support system and information to help you manage your debt better.
5. Prosper: Best Debt Consolidation Company For People with Bad Credit
Prosper is a pioneer in peer-to-peer lending and is now a strong performer as a debt consolidation business. Prosper’s core approach is an online platform that is easy to use and the willingness to share with borrowers information about how they are eligible for a consolidation loan.
To get a reasonable rate, you’ll need to have a good credit score. However, an easy eligibility checker will help you determine if you’re eligible and what terms you can expect. This doesn’t affect your credit rating. Prosper is very open about their fees, which is admirable, especially if you are prone to miss payments.
Peer-to-peer lending means that you may have to wait longer than usual for funds to reach your account. However, this approach can offer lower rates. While the fact that joint applications are permitted will be a welcomed option, it is Prosper’s transparency that makes it a great debt consolidation company.
6. Avant: Best Debt Consolidation Company to Avoid Overpayments
Avant is a top-rated debt consolidation company because they are open to hearing from people with low credit scores and offer a free option to repay your loan early. Avant also offers an easy-to-use online platform that allows you to check your eligibility for a loan without affecting your credit score. You can even have funds in your account as soon as your loan approval is granted.
Avant will consider poorer credit scores, so the APR offered at 9.95% is more expensive than other options. A 4.75% administration fee may also be included in any calculations.
Avant offers a variety of options for those who need a fast and reliable online consolidation loan.
7. LightStream: Best Debt Consolidation Company with Flexible Terms
LightStream is a great option if you are happy to use the internet and need maximum flexibility with your debt consolidation loan options. All borrowers will be satisfied by LightStream’s ability to accept debts up to $100,000 and offer payment terms up to seven years.
It is important to note that everything must be done online. If you are not comfortable with the screen, there is no way to call. LightStream loans have a high credit score, which might make it difficult for some to get one. However, an online lender will not require you to submit a soft pull credit inquiry before applying.
There are no fees, and you can get your funds the same day as you apply. LightStream also offers a rate guarantee, which means that LightStream will beat any rate offered by another company with the same terms by 0.1%. LightStream is a great option for consolidating debt.
8. Wells Fargo: Best Debt Consolidation Company For High Debt
Wells Fargo should be the bank to choose for anyone looking for a solution to consolidating their debts. It offers $100,000 loans and payment terms that can last up to seven years. Few other lenders can match its offer. Joint applications are possible, with rate discounts available for customers who are already bank customers. There are no fees.
New customers will need to visit a Wells Fargo branch to get started. However, many people prefer to have a more personal experience with their finances than online.
Wells Fargo also offers an impressive online service that allows customers to access their accounts from anywhere. They offer a variety of support and guidance via videos, articles, and calculators. Wells Fargo will also pay your creditors directly.
Some people may be reluctant to apply for a loan to determine if they are eligible. However, Wells Fargo is a trusted bank that offers an effective solution to consolidating debt.
9. Lending Club: Best Debt Consolidation Company Online
LendingClub is a peer-to-peer lender. It offers creative credit solutions and has a debt consolidation approach.
The commitment to make applying for a consolidation loan easy and stress-free is a strong one. You can complete the application online or by phone. It is easy to manage your account online. There are plenty of resources available on the website that provides information about the loan and general guidance on financing.
LendingClub’s strict lending criteria may make it difficult for some people to get a loan. However, joint applications are an option that can increase your chances of getting a better rate or improve your chances. LendingClub may not be the right option for you if you have higher debts or need a variety of loan terms. There is also an origination fee and a longer turnaround time for funds.
LendingClub may still be appealing if you have a good credit score and are looking for an easy online solution to consolidate your debt.
10. Payoff: Best Debt Consolidation Company to consolidate credit card debt
The payoff is the debt consolidation firm that looks out for your best interests. Profit focuses solely on credit card debt. It wants to help people get back on track and ensure they don’t go off the path again. Payoff employs both psychologists and scientists to help customers develop healthier financial habits.
The application process for consolidating debt is simple. Before you submit your formal application, there’s an option called ‘Check my Rate.’ As you might expect, support is available online as well as over the phone if needed.
While the origination fee (as high as 5%) might discourage some people, higher loan amounts and quicker turnaround times may be available elsewhere. However, Payoff is transparent in all that it does.
Some people might be willing to pay a bit more or wait a little longer to get their funds to gain the additional support Payoff offers. A debt consolidation service takes a proactive approach to its customers and offers welcome calls and regular check-ins.
How do debt consolidation loans work?
Although most debt consolidation companies offer unsecured loans without collateral, others provide secured loans. You will need to pledge something to the lender, usually your home, as security.
This is extremely risky as your home could be at stake if you cannot pay your monthly payments. High-interest rates may also be offered for those with poor credit.
A consolidation loan can put your home at risk and could lead to further debt. Although one payment and a low-interest rate are appealing, you must ensure that your costs are on time. This will prevent you from falling into similar or worse financial situations in the future.
The best debt consolidation companies: What you should look for
It is crucial to choose the right lender when choosing among the top debt consolidation companies. Do not choose a company that does not disclose all information required by law before inviting you to sign up.
Another indicator that a company is ethically compliant is its accreditation. These accreditations are not issued by the government but from private agencies. These entities are authorities in the field and have missions to encourage ethical debt management.
The American Fair Credit Council (AFCC), formerly TASC, is an advocate for consumers. A company must comply with all FTC regulations to be accredited by AFCC. They also need to renew their accreditation annually.
International Association of Professional Debt Arbitrators offers exercises and certifications for debt specialists. IAPDA-certified employees have been professionally trained in best debt management practices and upholding ethical standards.
The United States Organizations for Bankruptcy Alternatives has strict standards, which go beyond FTC regulations. Debt consolidation companies must follow them to be certified.
Finally, consider the additional resources offered by a company. Although any company can provide consolidation or negotiation services, the best ones will help you manage your finances and avoid getting into debt. Avoid any company that seems to be seeking repeat customers.
Transparency and consolidation of debt
When choosing a debt consolidation firm, it is essential to consider how open a lender will be with information. Make sure to read the history of the company before signing anything. The New Rule requires companies to disclose certain information before enrolling in their program.
These include estimates of the length of your program and its cost, your rights and responsibilities as a consumer, and the fact you may be subject to collection calls.
Legally, companies cannot charge upfront fees for services. Instead, they must give an estimate of the time it will take. They should not pressure you into disclosing personal information such as your bank account information before enrolling in their program.
Last but not least, debt consolidation companies can’t promise to stop collecting calls. Collection agencies have the legal right to contact you. Although your debt consolidation company might try to reduce the number you get, they may not stop calling you, especially if your creditors stop paying your creditors.
What is credit counseling, and how can it benefit you?
Depending on how much or what type of debt you have, you might be referred to a credit counselor. Most of the debt consolidation firms we reviewed will refer you to a credit counseling company if you have less than $7,500 in unsecured debt (e.g., credit cards, personal loans).
Two things are usually required in credit counseling. First, you will need to call a counselor. You will discuss your income, expenses, and savings, and then they will help you create a budget.
They will also be able to point you in the right direction for obtaining credit reports. Credit counselors recommend ways to manage your debt, such as bankruptcy, debt settlement, or debt management plans managed through a credit counseling agency.
The National Foundation for Credit Counseling has a list of accredited organizations that may help you with credit counseling.
Can you consolidate medical debt?
As medical costs rise, Americans are taking on more debt to pay their bills. An average household spends over $4,600 per year on medical care. One in five credit reports contains a late medical account. This is according to the CFPB. Medical debt, like all debts, can be combined in many ways.
Negotiating with your creditor is one way to reduce or consolidate your medical debt. Many medical bills contain errors. Make sure you review your account to ensure it is accurate. To correct any errors, you can contact your provider’s billing department and your insurance company. A hospital can grant financial hardship to reduce your monthly payment.
Consolidating consumer debt is possible in the same way as consolidating medical debt. A 0% balance transfer card, personal loan, or home equity loan are all options. These depend on having good credit. If you have missed payments on medical debt, you may not qualify for these loans. These may be a good option if you have good credit and are still making payments. However, they can also provide flexibility and relief.
Another option is to work with a debt resolution company. Instead of paying your bill, you’ll put your money in a fund that the settlement company will use for negotiations with your creditors. You don’t have to make any payments during the negotiation process, which can cause credit damage.
Are balance transfer cards a good choice?
Consolidating your balances on multiple credit cards, student loans, or personal loans can help you manage them better.
You can transfer your balances to one card by using a balance transfer card. They don’t get paid off; they just move their existing balances to one card with a single interest rate. These cards typically offer introductory APRs at 0% for several months. This is a great way to save money and not get hit with additional interest.
Keep these things in mind when looking for the best balance transfer card. Transferring your balance may require you to pay a fee. The fee can range from 3% to 5% of your current balance. If you share $10,000, the payment will be between $300 and $500.
This fee is lower than what you would pay to a debt settlement agency, which typically charges between 15% and 25% for debts they settle. Some balance transfer cards don’t charge transfer fees. Keep an eye out.
Remember that not all cards allow you to transfer more than a percentage of the card’s credit limit. This amount will need to be adjusted for fees. If you have a balance transfer credit card with a limit of $10,000, but you can only transfer 75%, you will be limited to sharing $7,500. This could mean that you may have a balance remaining on another account.
To be eligible for a balance-transfer card, you will typically need to have a good credit score. A hard inquiry will be conducted when you apply for one. This will impact your credit score. If you are behind in your payments, you might need to find other ways to reduce debt. You won’t be eligible for a balance transfer credit card.
Consolidating student loans
The most popular type of debt in America is student loans. On average, a student owes $37,000, and the typical monthly payment is $330. Private lenders make up around 20% of student loan volume, despite being the largest lender. Refinancing or consolidation can help make student loan debt more manageable.
You can consolidate your debt depending on whether you have private, federal, or a combination. You can request consolidation through the Department of Education if you have only federal loans. Consolidating federal student loans is the same as consolidating other loans.
Although you won’t receive a lower rate than the variable rate loans, you can convert them to a fixed rate. Consolidating federal loans means you only have one monthly payment, and they can be combined into one package.
A new term can be obtained, which is often for up to 30 years. Your consolidated loan rate is equal to the average of all your current rates. This number will be rounded up to the nearest eighth percent.
You can consolidate private loans and federal loans through another lender if you have them. You will need to meet stricter requirements. You will need to prove income and credit. If you don’t have these, you might need a cosigner. Consolidating your loans through a private lender will usually result in a lower interest rate and a longer-term.
Private consolidation comes with its own set of drawbacks. Personal consolidation has additional requirements, particularly credit scores, so it can be hard to get approval. Even if you get approved, the rate you receive may not be the best.
The terms are shorter than those for federal consolidations, which typically last 20 years. You also get some fringe benefits waived, such as forbearance in the event you lose your job.
Is it possible to consolidate your debt using the equity in your home?
You may be eligible to use the equity you have built up over time to consolidate your medical and credit card debt. A home equity loan can offer some advantages over other debt consolidation methods.
A home equity loan lets you access the equity you have built up over the years while paying off your mortgage. Home equity loans usually have lower interest rates than debt consolidation loans and balance transfer credit cards. Even if you aren’t eligible for the lowest rates, you can still save money by merging multiple interest-charging accounts in one loan.
A home equity loan has another advantage: lenders usually have less stringent credit requirements to approve. To qualify for a consolidation loan, your credit score must be at least 720. A score below 680 will make it difficult to obtain approval.
A home equity loan can be obtained with a credit score of about 620. However, your credit score is less important than that for other loans. Lenders will also consider your debt-to-income ratio and other financial aspects.
There are disadvantages to using a home equity loan for debt consolidation. The process of getting one can be slow. You will need to have an appraisal done, and you will go through the same underwriting process as for your first mortgage. In some cases, this can take up to a month. A personal loan or consolidation of debt usually requires a quicker approval process.