Debt Consolidation Loans
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If you’re looking to simplify your debt payments or save money, a debt consolidation loan can be a great solution.
While there are other debt relief options available to all Citizen, these are generally for more extreme debt issues. A debt consolidation loan can help you restructure your debt in a way that is streamlined and more affordable.
Here is our guide on everything you need to know about debt consolidation loans in FundsLenders.
Key Points
- Debt consolidation loans comes in both unsecured and secured forms.
- A debt consolidation loan can help you save money, make payments more affordable and streamline payments.
- You can get a debt consolidation loan from various lenders including banks, credit unions and alternative lenders.
Can You Get A Debt Consolidation Loan In FundsLenders?
A debt consolidation loan (either secured or unsecured) is used to pay off high-interest debt. The idea is to combine or consolidate existing loans into one larger, more affordable, and easier-to-manage loan. The goal is to save money on interest and become debt-free sooner.
How Does A Debt Consolidation Loan Work?
A debt consolidation loan works just like any other type of loan. However, in this case, once you’ve been approved, you’ll use the money you receive to pay off any debts you want to consolidate, especially high-interest debt. This can be credit card debt, personal loan debt, or any other type of debt that is eligible.
Keep in mind that certain types of debt can’t be consolidated, such as car loans and mortgages.
Debt Consolidation Loan Features Overview
Loan Amount Loan amounts available depend on your lender, credit and finances. However, you can generally get up to $35,000 unsecured with most lenders. If you have collateral, that amount can increase to over $100,000. Interest Rates Rates can range from 5% to 35%, depending on your finances and security. However, a debt consolidation loan is only worth it if you can secure a rate that is lower than the debts you want to consolidate Terms Terms usually range from 12 months to 5 years. Types Of Debt You Can Consolidate You can consolidate unsecured debt, such as credit cards, personal loans, and payday loans. Mortgages and car loans are usually not allowed.
| Loan Amount | Loan amounts available depend on your lender, credit and finances. However, you can generally get up to $35,000 unsecured with most lenders. If you have collateral, that amount can increase to over $100,000. |
| Interest Rates | Rates can range from 5% to 35%, depending on your finances and security. However, a debt consolidation loan is only worth it if you can secure a rate that is lower than the debts you want to consolidate |
| Terms | Terms usually range from 12 months to 5 years. |
| Types Of Debt You Can Consolidate | You can consolidate unsecured debt, such as credit cards, personal loans, and payday loans. Mortgages and car loans are usually not allowed. |
What Do You Need To Be Eligible For A Debt Consolidation Loan In FundsLenders?
- Good credit – Most lenders require borrowers to have good credit. However, you may qualify with bad credit if you can reduce your risk in other ways, such as providing collateral or a cosigner.
- Enough income to cover payments – You must have an income high enough to cover your loan payments after your other expenses or debt obligations.
- Bank Account—Most lenders require an active bank account to verify identity and income, as well as for funding and repayment purposes.
Can You Get A Debt Consolidation Loan With a debt consolidation Loan In FundsLenders?
If you have bad credit (lower than 559) due to old credit mistakes, you may still qualify for a debt consolidation loan with an alternative lender. These lenders generally approve borrowers based on their overall financial health.
| Can You Get A Debt Consolidation Loan With a debt consolidation Loan In FundsLenders? If you have bad credit (lower than 559) due to old credit mistakes, you may still qualify for a debt consolidation loan with an alternative lender. These lenders generally approve borrowers based on their overall financial health. |
