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Debt Consolidation
Debt consolidation can be very beneficial for consumers with multiple credit payments each month. With a multitude of payments to worry about, the best debt consolidation loan offers could help simplify these bills and possibly even lower interest charges that a consumer is paying.
What Is Debt Consolidation?
Debt consolidation is the process of combining some or all of a consumer’s debt. This can create a single, manageable payment, possible with a lower or fixed interest rate. Typically, this is done by consolidating the debt into one larger loan that has a lower interest rate along with other more favorable terms.
Debt consolidation can also be accomplished by utilizing a service that will negotiate lower interest rates and longer terms with the lenders you currently owe to lower your payments. These types of loans could help you get out of debt quicker, reduce your financial stress, and even improve your credit.
When Is Debt Consolidation a Wise Choice?
Consumers may take a few paths to try to cut down on the number of bills they have to pay. Unlike a balance transfer, debt consolidation presents people an opportunity to get all or almost all of their debt into one place. Some lenders offer loans as high as $50,000 or more for qualified applicants. If you are struggling to keep track of multiple debts, consolidating them into one easy payment might be the right answer for you. For people with good or excellent credit, you might be able to negotiate a loan with a lower interest rate. This could decrease the amount you have to pay each month, even if you are paying it off faster.
How Do I Get the Best Debt Consolidation Loan Offers?
You may have heard that only the top applicants can get a debt consolidation, but this is not necessarily true. People with excellent credit, secure employment and relatively low debt tend to get better debt consolidation loan offers. However, many lenders will take applications from consumers with a range of credit scores as they have pricing and terms that are tailored to different credit types of credit quality.
When you apply, you should be able to prove that:
- You’re older than age 18
- You have a verified bank account
- You’re not currently going through bankruptcy or foreclosure
- You have stable employment to ensure loan repayment
Other than these minimum qualifications, your credit score, income and total debt outstanding are more likely to affect the loan terms you might get. If you have a higher credit score, you will probably get offers with lower interest rates. People with lower scores or income may pay a higher interest rate or have limits on the loan size they can get.
At CreditSoup, the best debt consolidation loan offers are right at your fingertips. Check out this page to discover your debt consolidation options. We also encourage you to use our free Loan Match tool to see offers that fit your credit score.