Debt consolidation means to pay off your existing loans by taking one single loan which suits your requirements. It is the best way to streamline the entire repayment process.
Lower interest rates and a low monthly installment are two of the biggest why people opt for a debt consolidation loan. You have a higher chance of getting your debt consolidation loan approved if you have sufficient assets that you can let the lender use as collateral against the loan. This is known as a Secured Loan as the lender has an option to recover money if you fail to repay.
But with Unsecured debt consolidation loan, the lender has to take a risk by lending you money. If you fail to repay, suing you is the only option the lender is left with. Hence, this loan has a high-interest rate and are difficult to get approved unless you demonstrate a steady flow of income.
Here are the 3 best debt consolidation loans 2019
1. Lending Club
Get your life back on track by applying for a debt consolidation loan online with Lending Club. Lending Club is known for it’d credit card debt consolidation plans which allow users to clear their debt by paying a fixed monthly rate.
Applying for a debt consolidation loan with Lending Club is easy and hassle-free. Apply for a loan online by giving some basic information like the amount you are looking to borrow, your name, address, etc. Once you are done with this, you will get plenty of plans to choose from. Your money gets deposited in your bank account without having to do anything else.
2. Marcus by Goldman Sachs
Debt consolidation loan by Marcus might be the best option for you have a good credit score(above 660) and want a flexible loan term. Marcus is a brand of Goldman Sachs which is headquartered in Salt Lake City.
They lend anything between $3,500 – $40,000 with an APR of 5.99% – 28.99%. Similar to Lending Club, Marcus also deposits the money in your bank account within 1-4 business days(from approval date). They do conduct a soft credit check with credit bureaus like TransUnion to verify your credit score and check your credit history.
3. OneMain financial
OneMain Financial is a lender headquartered in Pennsylvania. Like Lending Club, OneMain Financial also provides a fixed interest rate, one monthly payment and an option to roll all the debts into one single unit.
To get approved for a debt consolidation loan with OneMain Financial, you need a copy of a valid, government-issued ID, proof of residency and proof of income. You can also ask for a lower monthly payment which they will approve after careful evaluation of your credit score, credit history, income details, etc.
To reiterate, a lowered interest rate and one fixed monthly payment(which does not change with time) are two of the biggest benefits of applying for a debt consolidation loan. “No matter how small or large the principal loan amount is, you are expected to pay off the entire debt within 3-4 years,” says Harrine Freeman, best-selling author of How to Get out of Debt: Get An “A” Credit Rating for Free.