Having a tremendous amount of debt can be very overwhelming. You have so many credit card bills and loans each month, and they are hard to keep track of. Therefore, you need a solution to help you manage all of your debts. One solution that can help is an unsecured personal debt consolidation loan for people with bad credit. This involves combining all of your debt into one loan with a lower interest rate. Many companies offer debt consolidation loans. Some of these include:
- Lending Club: This loan provider is a peer to peer lending company. You can obtain a loan between $1000-$40,000, and the APR ranges from 5.99%-35.89%. To be eligible for Lending Club, you must have a fairly good credit score. The company like to have at least a 640 credit score. You also need a decent credit history and an acceptable debt to income ratio. Terms are either 35 months or 60 months.
- Avant: This is probably the best personal loan debt consolidation companies for lower credit. The interest rates might be a little higher than with other companies, but the qualifications are less stringent. After being approved, you can have your cash within the next day. The term for this personal loan is between 24 to 60 months, and you can borrow up to $35,000.
- Prosper: With this company, you usually can get lower rates than you have with a credit card. The APR ranges from 5.99% to 36.00%. You can get a loan anywhere from 36-60 months. It is peer to peer lending, so real people fund your loan. You normally need at least a 640 credit score. Other things Prosper considers is your debt to income ratio and the number of delinquent accounts you have.
- Lightstream: You can obtain a loan from $5000 to $100000. This company offers loan rates for these loans. Terms range from 24 to 84 months. The disadvantage of this loan is that you need very good credit to qualify.
- SoFi: The minimum credit score for a loan is 660, but most people have above 700. You also need a pretty high income amount. These loans are an excellent option to consolidate student loans. You do not have to have established credit to qualify. Loans range from $5000 to $100000. They range from 3-7 years.
- Discover Personal Loans: To qualify with this lender, you need at least a 660 credit score, but most people who qualify have above 700. Loan terms range from 3-7 years, and you can receive up to $35000. This company provides lower interest rates. The rates range from 6.99%-24.99%.
The advantages of a personal debt consolidation loans include lower monthly payments, lower interest rates, and easier to manage payments. Debt does not need to control your life. You can visit https://www.usa.gov/debt for more debt options. If you have a lot of debt, research the companies to decide which one is right for you. You can then get your life back on track financially.