Consolidating debt a good
Light Stream tailors interest rates based on a borrower’s intent, so a debt consolidation loan will have a higher rate than say, a home improvement loan.So Fi offers loans of up to $100,000 to borrowers with excellent credit and high incomes or earning potential.
If you have limited credit history or a poor credit score, expect to pay rates at the higher end of the ranges shown.A debt consolidation loan may help you take that step.With a debt consolidation loan, a lender issues you a single personal loan that you use to pay off your other debts, such as medical bills or balances on high-interest credit cards.If you’re having a hard time keeping up with multiple payments, it’s a strategy worth considering.Taking out a personal loan is not the only way to simplify your finances, however, and it may be more expensive than other options.If your credit is good, you can apply for a 0% interest credit card, which could save you quite a bit of money if you pay off your debt within the promotional period.
But a personal loan offers some advantages of its own.
If you decide to take out a debt consolidation loan, look closely at the fees a lender will charge, what kind of support it offers (such as financial education or payment flexibility) and whether you can use a co-signer to get a lower interest rate.
We’ve identified lenders that make debt consolidation easier below.
It is baked into the annual percentage rate (APR) that you receive when you qualify for a loan.
If you’re already in the hole, every penny matters.
“The big advantage to a personal loan is that it forces you to pay off your debt over time,” says Nerd Wallet personal finance columnist Liz Weston.