Debt Consolidation Loans
Debt consolidation loan provides you the flexibility to manage all of your outstanding credit card debts through a low interest loan.
By combining all your debts into one payment every month, it creates the flexibility to pay off your credit cards and other miscellaneous debts through a consolidated monthly payment plan. Loans can range from 5K-50K depending on the debt amount you are working with and also have advantages and disadvantages.
- Is Debt Consolidation right for you?
- As many navigate options for debt consolidation and paying down on the debts this becomes a question to take a deep dive into. Debt consolidation loans typically will have a fixed interest rate and installment amounts to be given during the disbursement of the loan. This may be beneficial if you’re already having difficulty managing multiple payments to creditors and would like to be at a peace of mind with one payment.
- How Large Of A Debt Consolidation Loan Can I Request
- Debt consolidation loans should cover the amount of debt you owe. Typically debt consolidation loans are anywhere from 5k-20k. There are instances where the loan can even get to 50K+ for some accounts. Keeping in mind that there is interest being applied to the loan, you should borrow it completely on how much you actually need. Borrowing more than the balances owed on the cards can lead to larger payments and unnecessary debt that in the long run put you in a dire financial situation.
- Applying and Qualifying For a Debt Settlement Loan
- Since debt consolidation loan takes into account personal and financial history it is recommended to have fair-excellent credit, monthly stable income, and a history of on-time payments for lenders to approve the loan terms. Typically good-excellent credit is recommended before you apply for a loan. Loans can have origination fees as well to ensure that this loan will be able to get paid back (can range from 5-10%) of total loan amount.