Online Debt Consolidation Loan Review
There are lots of options out there for lenders that will provide a debt consolidation loan. But I wanted to dig into the details and provide an online debt consolidation loan review.
There are plenty of companies out there that would be interested in providing financing for a debt consolidation. I wanted to research a Chase debt consolidation vs Bank of America debt consolidation loans. Then I wanted to look at a Lending Club debt consolidation loan compared to the banks. When you compare debt consolidation loans and the methods, I will tell you why I picked this lender.
What is Debt Consolidation?
Over months or years, many people and couples can rack up a significant amount of debt. This can be in the form of credit cards or even medical expenses. When you have a family and kids this can be especially easy to do.
In the United States the estimated amount for a families credit card debt can be over $15,000. Add in other medical expenses and bills and this can easily top $20,000.
This is where a typical debt consolidation loan would come in to pay off all of the credit cards and other debts and put them into one fixed payment loan.
The interest rate on this consolidation loan would really depend on the type of debt consolidation loan as well as the persons credit score and history.
Who Offers Debt Consolidation Loans and How Does It Work?
When reviewing Chase debt consolidation loans on their site, I did not find anything that mentioned consolidation loans. There was also no category for personal loans. The two options that were available was credit cards that might offer some type of balance transfer option. Then there is also the home equity option if you own a home. The only issue is that I really would not want to put multiple credit cards onto just another credit card. The equity loan might be worth considering because your interest rate could be lower. But, you also have to go through putting your house up as collateral and the amount of paperwork to get the equity loan can be time consuming.
For an online debt consolidation loan this did not seem as good of an option as other alternatives.
To do a Bank of America debt consolidation loan it would be a similar process. You would need to go the credit card route or home equity loan or line of credit against your home. Currently I did not see unsecured personal loan options to consolidate debt.
The other issue I had with going through a Bank of America debt consolidation loan is that you would need to go into a branch office to request a mortgage loan option. This would require filling out paperwork and waiting a few days for responses and to complete the overall process.
The other option is to use peer-to-peer lenders or lending networks online. This has become very popular because of it’s simplicity.
What is an Online Debt Consolidation Loan Option?
If you have good credit there is a number of online debt consolidation loan alternatives.
After going through various lenders the Lending Club process has a number of advantages even to other peer-to-peer lenders.
You can also get up to $40,000 to use towards paying off all your credit cards, medical expenses and other debts.
The process is completely online. You just fill out one simple form and get a rate quote. This does not impact your credit score and uses what is called a soft pull. Once you accept the terms your loan will be funded. This process is done through multiple individual investors who fund the loan automatically over the Lending Club platform.
Once the loan is funded you will e-sign the paperwork and the money will be direct deposited into your bank account.
Borrowers can save as much as $300 per month after consolidating their credit cards and other debts into a Lending Club debt consolidation loan. You will just have one personal loan with a fixed rate payment that will not change. You also have a fixed end date when you know the personal loan will be paid off. This can build your credit if used responsibly and get you out of debt.
If you would like to use them and do an online debt consolidation loan just visit LendingClub.com
PersonalLoans.com Lending Network
Another option for an online debt consolidation loan is to use a lending network. We recommend PersonalLoans.com
You will fill out one easy form and get connected to over 100 lenders in their lending network. The information you provide will allow them to connect you to the right lender.
What Are Factors to Consider Once the Credit Cards are Paid Off?
There are some key factors to consider once you have gotten all the credit cards and debt paid off. It is a wonderful thing and now you have just one nice fixed payment. You even know the end date. But wait, should we start using the credit cards again?
This is a question that comes up often and my suggestion would be only use one credit card. Make sure you pay it off every month and do not run a balance.
Once the debt consolidation loan is paid off you will now be in a good habit of using just one credit card at a time. The main thing is to pay off your credit card each month and never run a balance again.
Make sure you are budgeting every month so your expenses are lower than your income. Being debt free can be a wonderful feeling and is achievable.
Using a debt consolidation loan is a great tool to achieve the goal, just make sure you stay on track while it is being paid off. Change your habits when using credit cards to avoid getting back into credit card debt.
Are There Any Fees If I Pay My Debt Consolidation Loan Off Early?
The Lending Club peer-to-peer personal loans have no prepayment penalty or fees. It is fine to pay your loan off early or double up on payments. Actually once the loan is paid off it should help your credit score and make it easier to get a second personal loan if you ever need it.
Most of the time there are no prepayment penalties, but just make sure you understand the details of your specific personal loan.
How Much Can I Borrow With an Online Debt Consolidation Loan?
When doing an online debt consolidation loan you will normally want to make sure you get a personal loan that will cover all your credit cards and debt.
Lending Club online personal loans let you borrow up to $40,000 and PersonalLoans.com will connect you to lenders that you can borrow up to $35,000.
This is normally enough to cover most online debt consolidation loan requirements.