7 Best Debt Consolidation Loans For Simplifying Finances
Are you struggling to keep up with multiple debt payments every month? Debt consolidation loans could be the solution you’re looking for. By combining all of your debts into one loan, you can simplify your finances and potentially save money on interest rates. However, with so many options available, it can be overwhelming to choose the right one. That’s why we’ve done the research for you and compiled a list of the 7 best debt consolidation loans to help you make an informed decision. Keep reading to find the perfect loan for your financial situation.
- LendingTree – Get multiple offers from different lenders with just one application
- Payoff – Specializes in consolidating credit card debt with low interest rates
- SoFi – Offers low interest rates and no fees for those with good credit
- Avant – Accepts borrowers with lower credit scores and offers flexible payment options
- Marcus by Goldman Sachs – No fees and flexible payment options for those with good credit
- Discover – Offers debt consolidation loans with low interest rates and no origination fees
- Upgrade – Accepts borrowers with fair credit and offers debt consolidation loans with low rates
1. Best Overall: Marcus by Goldman Sachs
Why We Like It: Marcus by Goldman Sachs offers competitive rates and no fees, making it an attractive option for those looking to consolidate their debts.
Who Should Get It: Borrowers with good credit scores who want to simplify their finances and potentially save money on interest rates.
Pros
- Fixed interest rates ranging from 6.99% to 19.99% APR
- No fees
- Loan amounts up to $40,000
- Loan terms ranging from 36 to 72 months
- Flexible loan terms
Cons:
- Not available to borrowers with poor credit scores
- Loan amounts may not be sufficient for some borrowers
2. Best for Low Interest Rates: LightStream
Why We Like It: LightStream offers some of the lowest interest rates on the market, making it a great choice for those looking to save money on interest over the life of their loan.
Who Should Get It: Borrowers with excellent credit scores who want to save money on interest rates.
Pros:
- Fixed interest rates ranging from 5.95% to 19.99% APR
- No fees
- Loan amounts up to $100,000
- Loan terms ranging from 24 to 144 months
Cons:
- Not available to borrowers with poor credit scores
- Loan amounts may be too high for some borrowers
3. Best for Bad Credit: OneMain Financial
Why We Like It: OneMain Financial offers loans to borrowers with poor credit scores, making it a good option for those who may not qualify for other loans.
Who Should Get It: Borrowers with poor credit scores who want to consolidate their debts.
- Interest rates ranging from 18.00% to 35.99% APR
- Origination fees ranging from $25 to $400
- Loan amounts up to $20,000
- Loan terms ranging from 24 to 60 months
Pros:
- Available to borrowers with poor credit scores
- Fast approval process
Cons:
- High interest rates
- Origination fees can be expensive
4. Best for High Loan Amounts: Discover Personal Loans
Why We Like It: Discover Personal Loans offers high loan amounts, making it a good choice for those with large amounts of debt to consolidate.
Who Should Get It: Borrowers with high levels of debt who want to consolidate into one loan.
- Fixed interest rates ranging from 6.99% to 24.99% APR
- No origination fees
- Loan amounts up to $35,000
- Loan terms ranging from 36 to 84 months
Pros:
- High loan amounts available
- No origination fees
Cons:
- Interest rates can be high for some borrowers
- Not available to borrowers with poor credit scores
5. Best for Low Fees: SoFi
Why We Like It: SoFi offers low fees and competitive interest rates, making it a good option for those looking to save money on their loan.
Who Should Get It: Borrowers who want to consolidate their debts and save money on fees and interest rates.
Pros:
- Fixed interest rates ranging from 5.99% to 18.28% APR
- No fees
- Loan amounts up to $100,000
- Loan terms range from 24 to 84 months
Cons:
- Not available to borrowers with poor credit scores
- Loan amounts may not be sufficient for some borrowers
6. Best for Quick Funding: Upgrade
Why We Like It: Upgrade offers quick funding and competitive interest rates, making it a good choice for those who need funds quickly.
Who Should Get It: Borrowers who need funds quickly and want to consolidate their debts.
- Fixed interest rates ranging from 5.94% to 35.97% APR
- Origination fees ranging from 2.90% to 8.00%
- Loan amounts up to $50,000
- Loan terms ranging from 36 to 60 months
Pros:
- Quick funding available
- Competitive interest rates
Cons:
- Origination fees can be expensive
- Not available to borrowers with poor credit scores
7. Best for Flexible Repayment Terms: Avant
Why We Like It: Avant offers flexible repayment terms, making it a good option for those who need more time to repay their loan.
Who Should Get It: Borrowers who want flexible repayment terms and need to consolidate their debts.
- Interest rates ranging from 9.95% to 35.99% APR
- Origination fees ranging from 0.95% to 4.75%
- Loan amounts up to $35,000
- Loan terms ranging from 24 to 60 months
Pros:
- Flexible repayment terms available
- Fast approval process
Cons:
- High interest rates
- Origination fees can be expensive
Debt consolidation loans can be a great way to simplify your finances and potentially save money on interest rates. When choosing a loan, it’s important to consider your credit score, loan amount, and repayment terms. By doing your research and comparing options, you can find the best debt consolidation loan for your needs.
Frequently Asked Questions
Here are some frequently asked questions about the 7 best debt consolidation loans for simplifying finances:
1. What is a debt consolidation loan?
A debt consolidation loan is a type of loan that allows you to consolidate all of your existing debts into one loan. This can be helpful if you have multiple debts with different interest rates and monthly payments. By consolidating your debts, you can simplify your finances and potentially lower your monthly payments.
When you take out a debt consolidation loan, you use the funds to pay off your existing debts. You then make one monthly payment to the lender who provided the consolidation loan. The interest rate on a debt consolidation loan is typically lower than the rates on credit cards or other high-interest loans.
2. What are the benefits of a debt consolidation loan?
One of the main benefits of a debt consolidation loan is that it can simplify your finances. Instead of juggling multiple monthly payments and due dates, you only have to make one payment to the lender who provided the consolidation loan. This can help you stay organized and avoid late payments.
In addition, a debt consolidation loan can potentially lower your monthly payments. If you have high-interest credit card debt or other high-interest loans, consolidating those debts into a lower-interest loan can save you money on interest charges each month. Finally, a debt consolidation loan can help you pay off your debts more quickly since you’ll be paying less in interest charges over time.
3. Can I get a debt consolidation loan with bad credit?
It can be more difficult to qualify for a debt consolidation loan with bad credit, but it’s not impossible. Some lenders specialize in providing loans to borrowers with less-than-perfect credit, although these loans may come with higher interest rates and fees.
If you have bad credit and are looking for a debt consolidation loan, consider working with a credit counseling agency or financial advisor. They can help you develop a plan to improve your credit score and financial situation, which can make it easier to qualify for a lower-interest loan in the future.
4. What should I consider before applying for a debt consolidation loan?
Before applying for a debt consolidation loan, it’s important to consider your financial situation and whether a consolidation loan is the best option for you. You should also research lenders and compare interest rates, fees, and repayment terms to ensure that you’re choosing a loan that you can afford to repay.
In addition, you should create a budget and plan for how you’ll manage your finances once you’ve consolidated your debts. This may involve cutting back on expenses, increasing your income, or working with a financial advisor or credit counselor to develop a plan to pay off your debts and improve your financial situation.
Getting out of debt is a daunting task, but it’s not impossible. Debt consolidation loans can be a great way to simplify your finances and reduce the burden of multiple high-interest debts. With so many options available, it can be overwhelming to choose the right one. Thankfully, we’ve narrowed down the 7 best debt consolidation loans you can consider.
No matter which option you choose, consolidating your debt can help simplify your finances and make it easier to get back on track financially. Take the time to research and compare your options to find the best debt consolidation loan for your specific needs and goals.
