Debt consolidation companies provide debt-relief services that enable you to combine multiple loans into one payment. You may also use these services to transfer your balances onto credit cards with lower interest rates or obtain a home equity loan to pay off high-interest credit card debt.
Before deciding to take out a debt consolidation loan, it is important to weigh your options and carefully weigh the advantages and drawbacks.
DebtHammer
The founder of this business was once victim to payday loan traps and now helps families across America escape them. Their services include templates and tools to dispute debt validity and stop harassing phone calls from payday loan companies.
The initial step in their payday loan consolidation process involves an assessment of your current financial situation. Additionally, this phase provides you with access to a free consultation with a debt expert for additional guidance and solutions.
In the second phase, they deposit a portion of your debt into an exclusive savings account. Subsequently, they begin negotiations with creditors to reduce the amount owed.
DebtHammer’s payday loan relief program is not only an effective way to escape the payday loan trap, but it can also improve your credit score in the long run – helping prevent you from falling back into a debt cycle in the future.
Upstart
Upstart is an AI-driven lender that utilizes nontraditional data like college education and work history to determine loan eligibility. This differs from other lenders who typically only consider credit scores and debts when making their determination.
Upstart makes it easy for borrowers to apply online and receive their funds within one business day. Plus, the platform provides various repayment options with no prepayment penalties.
To begin the process, applicants must create an account and provide personal information. Furthermore, they must consent to a soft credit check which does not affect their score.
Once approved, Upstart will transfer their loan funds directly into their bank account.
Upstart is ideal for borrowers with fair credit who require fast funding and want to avoid traditional lenders’ fees. Unfortunately, it may not be suitable for those with bad credit or high debt levels.
SoFi
SoFi offers loans and other financial solutions to help customers meet their savings objectives. Its Vaults feature allows users to set a goal within a specific time frame, monitor progress toward it, and make regular deposits towards it.
Financial solutions offered to employees include student loan refinancing, emergency savings and employer contribution benefits like PTO conversions and tuition reimbursements. Many employers, including many Fortune 500 companies, rely on its employer programs for assistance.
SoFi stands out among competitors with its competitive rates and low fees. Its website makes applying for a loan or checking rates simple, plus their customer service hours are extensive.
Lending Club
Lending Club provides a range of personal loans for those needing to consolidate debt. You can apply online and approved applications are typically disbursed within two days.
Loans are typically priced based on credit scores, debt-to-income ratios and your credit history. Typical loan terms are 36 or 60 months; however you have the option to select longer periods.
The website’s fast and straightforward loan application process can be completed within two minutes. Plus, you have the opportunity to compare rates from multiple lenders before making your final decision.
Lending Club stands out among other peer-to-peer lenders by not charging an application fee or prepayment penalties on loans that are paid off early. Plus, it’s one of the few companies offering personal loans.
