Do you feel burdened because of some debts you have? Debt consolidation comes right into your mind to make it easier. Other than that, the policy of debt consolidation represents beneficial systems to your credit. It depends on which program you are applying to. Try to compare the best debt consolidation programs available first!
Before going to get to know more about this program and its policy, better for you to comprehend the benefits. What can you get when you are taking debt consolidation programs? Take a look at the points listed below for more detailed information about how debt consolidation works!
Benefits of Best Debt Consolidation Programs Available
The policy of debt consolidation is basically to merge all of your debts into one payment. It seems beneficial, isn’t it? On the other hand, you will be able to enjoy a bunch of advantages when paying for your debts, such as:
1. Debt Quick Repayment
Your debt will be paid off quickly when applying for a debt consolidation program. Additionally, alliance quick repayment would save you money more since you just need to pay down at once. Debt consolidation improves your credit by merging the debts into a single alliance and reducing the number of interest rates.
However, you need to check your credit card type whether it is available for debt consolidation or not. Debt repayment schedule also becomes a crucial thing you need to take note of in order to make your debt paid off on time.
2. Decrease Interest Rates
The best debt consolidation programs available for decreasing the interest down to the lowest rate. You can get lower interest rates on credit cards from the current interest rate in America which is 24.61%. Interest rate reduction occurs based on your credit score, loans, and term length.
For instance, you may still be able to receive a lower interest rate when you have an average credit score. It would be beneficial for you since you don’t have to spend too much money on your debt.
3. Reduce Monthly Fee
One of the biggest flexes of applying to the best debt consolidation programs available is to have a single monthly fee for credit card debt. A single debt payment would make the budgeting plan easier since you can extend the loan term length.
4. One-Time Monthly Payment
Furthermore, the debt consolidation programs will help you to easily remember the fixed monthly payment. It would be on the same date every month, thus you wouldn’t need to double payment for the debt you have. One-time monthly payment could be the best way to plan your monthly budgeting easily.
The Best Debt Consolidation Programs Available
After learning the benefits of debt consolidation you can experience to make your budgeting easy, you need to take note of another crucial thing. There are some of the best debt consolidation programs available for you. Scroll this section down to discover the top 5 debt consolidation programs you can apply!
1. SoFi
SoFi has become the best debt consolidation program that offers consolidation loans up to $100,000. You can experience low rates and quick funding for borrowers to receive a loan after filling out the requirements. SoFi would take your estimated cash flow, educational background, and career to determine the loan they can give to you.
However, the lack of SoFi being the best debt consolidation programs available is it is not available for bad credit scores. It requires a high credit score and must be borrowed starting from $5,000. Unfortunately, SoFi doesn’t serve co-signers and is only available for co-applicants.
2. Upgrade
Other than that, Upgrade has become one of the best debt consolidation programs available which offers a service for bad credit. Upgrade offers multiple loan options which can make it easier to plan your monthly budget. You can select a monthly payment system with a term length that suits your finances best.
By choosing Upgrade as your debt consolidation program, you do not need to prepare early payoff costs. You still can get discounts with loans available up to $50,000. However, the origination fee of Upgrade seems higher than the other which is up to 9.99%.
3. Happy Money
Happy Money comes to consolidate high-interest-rate credit card debt. It is specially designed for you to make great financial benefits and resources to the banker. Since Happy Money has been associated with credit unions, you can receive lower APRs with the highest APR rate being 18.00%.
Unfortunately, Happy Money takes too long to send your loans to creditors. It would take up to 30 days which means it doesn’t fit your need for quick funding.
4. Discover
Discover is included into the best debt consolidation programs available for low rates and no fees. If you have good credit scores of at least 660, you will be able to receive a rate under 8%. Additionally, Discover offers no fees including application fees, origination fees, and repayment penalties.
Yet, you have to be aware of the late payment penalty since Discover won’t be easy on you for this. It will cost $39 for each late payment during your debt consolidation without an interest rate discount. For this reason, Discover provides higher costs rather than the other programs, yet it serves the best depending on your credit scores!
5. Upstart
If we speak about technology, Upstart comes with AI to be a lending platform for personal loans, home credit, and so on. Upstart is available for loans up to $50,000 for a bad credit score which is at least 300.
Unlike Happy Money, this debt consolidation program provides quick approval for loans with 15 days of late payment. Hence, Upstart is the greatest choice if you are looking for quick funding with loan term lengths starting from 3 years to 5 years.
Are the Best Debt Consolidation Programs Available Worth It?
In brief, debt consolidation would be beneficial for you. It will put you at ease to pay your debts without taking a look at your credit score too much. Additionally, it is easier to manage your finances even though you have debts and loans on your credit card.
However, you have to consider choosing the best debt consolidation programs available that suit your needs. Some programs would consolidate your debt by considering your credit score, payment system, and additional fees. Ensure to choose the most flexible programs to definitely make your budgeting easier!