Streamline multiple debts into one manageable loan with a fixed monthly payment. Lower your interest rates and simplify your finances today.
Get StartedBasically, a debt consolidation loan is a loan that combines various debts into one new loan with a single monthly payment.
For example: imagine you have several credit cards, a medical bill, and a personal loan, all with different interest rates and due dates. Debt consolidation loan is a new loan for a large enough amount to pay off all those existing debts. Then, instead of juggling multiple payments, you make just one payment to the new lender each month.
Debt consolidation works by streamlining your debts into a single, more manageable loan. Here's a step-by-step breakdown:
Imagine you have three credit cards with a total outstanding balance of $10,000 and an average interest rate of 20%. You consolidate these debts with a personal loan for $10,000 at a 12% interest rate. By making consistent monthly payments on the new loan, you'll save money on interest and potentially pay off your debt faster.
Calculate your debt consolidation loan by inputting information about your current loans, such as outstanding balances, interest rates, monthly payments.
Then, the calculator can estimate your new monthly payment if you were to combine those debts into a single loan. It can also show you how much interest you could save over the life of the loan and how long it might take to become debt-free.
No more juggling multiple payments and due dates.
You may qualify for a lower interest rate on the new loan, saving you money on interest charges over time.
Your monthly payment will be consistent, making budgeting easier.
As you make on-time payments on the new loan, your credit score can improve.
Need funds to cover your current debts and possibly save you money each month? You have options! Here are some of the other loan options you have to help consolidate your debt.
Personal loans offer a versatile solution for consolidating debt. By taking out a personal loan, you can combine numerous debts that currently have high-interest rates, such as credit cards or medical bills, into one loan with the potential of a lower interest rate.
An installment loan provides a structured approach to debt consolidation. With a fixed loan amount and a set repayment schedule, you'll receive a predetermined amount of money and repay it in installments over a defined period.
Even with a less-than-perfect credit history, bad credit loans can be a viable option for debt consolidation. These loans are designed for borrowers with lower credit scores.
An emergency loans is meant to cover an emergency you simply do not have the funds to cover in your savings account. These loans often cover problems like medical emergencies, auto accidents, and cash shortages between paydays.
Initially, your credit score might dip slightly due to a hard inquiry on your credit report. However, as you make on-time payments on the new loan, your score could gradually improve.
Requirements vary by lender, but generally you need to be U.S. resident, 18 years old 600+ credit score, stable income, and a manageable debt-to-income ratio.
Lenders calculate interest based on factors like credit score, loan amount, and repayment term.