A personal loan can help you when you need to make bigger purchases such as emergency home expenses, vehicle repairs, and debt consolidation. A debt consolidation loan is a type of personal loan that consolidates all of your debt into a single account. The benefit of a debt consolidation loan is that you won’t have to manage multiple accounts and keep track of payments due each month. While there are several benefits of having a debt consolidation loan, it’s best used to pay off credit card debt while eliminating high-interest rates. Keep reading to learn more.
How can a personal loan help me get out of debt?
When you use a personal loan for debt consolidation you can reduce your interest rates compared to credit cards. Personal loans typically have lower interest rates which is a major advantage to getting out of debt. Lower interest rates means you will have less interest to pay as you keep up with your debt repayments. Once you find a debt consolidation loan that works with your monthly budget, you will find it is much easier to pay off your debt – especially with one monthly payment. Personal loans help you manage your debt better, save money, and pay off debt faster than you ever thought possible.
What affects interest rates?
A big factor to indicate what your personal loan interest rate will be is your credit score. A high credit score will produce a lower interest rate, and this is determined by several factors, including a summary of your financial history and your ability to repay debts. Depending on a borrower’s credit score, personal loan interest rates can range from 6% to 36% and in most cases. In an ideal situation, it’s best to have a decent credit score when considering a personal loan. However, even if your credit score isn’t perfect, you still have options when it comes to getting out of debt. For example, Lendah can help find debt consolidation loans tailored to your needs.
How to get lower rates?
According to Forbes Advisor, in March 2021 the average interest rate on a personal loan was less than 12% and the rates were as low as 3%. Improving your credit score will help you to get the lowest interest rates and with the money you save on interest, you’ll be able to pay off your debt much faster. One of the simplest ways to increase your credit score is to make consistent payments on your credit card debt. The best way to stay consistent with minimum payments is with a debt consolidation loan. Make paying off debt simple with one monthly payment that your budget can handle.
Let the team at Lendah help you get on the road to financial freedom with your best options for a debt consolidation loan. With a network of 30+ lenders, you’ll get options fast and all in one place!
If you have questions about debt consolidation loans, speak to our team of knowledgeable professionals. Our compassionate loan matchmakers will find the best terms tailored to your unique situation with fast approval and rates starting as low as 3.84% for amounts up to $100,000.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.