When you have debts, it is difficult pay each of them every month. Sometimes paying your debts in long term can be a good financial solution. Paying your debts in long term can make your debts more than you already have. However it may be a good solution to pay one place instead of paying two or three debts. Also you can spend some money for yourself.
Let’s say you have 15.000 $ debt. Also your bills, rent or other expenses are waiting for you to be paid every month. If you get a debt consolidation loan for 15.000 $, it can be 19.000 $ but you will pay only 1.000 $ for 2 years. The rest of your money can stay with you.
When you decide to get a debt consolidation loan, it is good to compare them. They can look same but some of them have higher interest rates. You should be aware and compare everything that the lender offers you. Because you can get into a bigger trouble than you already have. So compare them according to interest rates and payment options. Payment options are also another thing to think about because if you can’t pay in those terms and the monthly payment is high you are able to get into bigger trouble. Your credit score will be lower. So then you will not be able to find another loan to save yourself.
The Best Thing is to Use Peer-to-Peer Lending
Instead of getting a debt consolidation loan from a bank, it is better and easier to get from a personal lender. It is better because they can offer you lower interest rates and better payment options. It is easier because even if you have lower credit score you can get a debt consolidation loan easier. Best ones as Peer-to-Peer lending are LendingClub, Prosper and Upstart. You can go to their websites and compare the loans according what you want and what you need.
“I Have Bad Credit Score”
Most of the people who are in debt have bad credit score. So you should not be worried about it. If you have bad credit score, probably you will have higher interest rates than you expect. However it can be a good way to get away from your debts. But as we said before you should compare them before you get one.
Top 3 Debt Consolidation Loan Lenders
PersonalLoans.com offers you debt consolidation loan from 500 $ up to 35.000 $. And the interest rates are between 5.99% and 35.99%. Loan terms are 3 months up to 72 months.
BadcreditLoans.com gives 500 $ up to 5.000 $ debt consolidation loan for who has bad credit score. The interest rate starts from 5.99% goes up to 35.99%. You can pay back in 3 to 60 months.
SignatureLoan.com has the same interest rate like the above ones. And minimum limit is 1.000 $ to 35.000 $. The payment option is like the other ones. It starts from 3 months goes up to 72 months.