Like a double-edged sword, credit cards can either help or hurt you depending on their use. They may come in handy if you experience a change in income or an unexpected emergency. However, this short-term benefit can quickly become a long-term problem. As high-interest debt piles up, you risk getting sucked into a cycle of seemingly endless monthly payments that sap your budget without putting a dent in what you owe. 

With American consumer debt approaching $14 trillion in 2019, it seems that households across the nation are struggling to pay back thousands of dollars in debt. It’s completely normal to feel overwhelmed in this situation, but don’t lose hope.

Here are a few reasons why debt consolidation loans may be the answer you’re looking for.

What Are Debt Consolidation Loans?

Debt consolidation loans are personal loans used to pay off a combination of unsecured debts, like multiple credit cards. Instead of paying multiple bills simultaneously, a debt consolidation loan simplifies debt payments into a single bill. Unlike most credit cards, these loans come at a fixed interest rate and can be paid off in as little as 2-5 years depending on the amount owed. 

What Are The Benefits?

While interest rates can vary based on your credit score, debt consolidation loans often have a lower rate on repayments. In 2020, CNBC found that credit card users in the United States have an average APR of 17.3% while the average interest rate for personal loans is just 10.7%

Debt consolidation loans also have fixed repayment schedules. That means no worrying about fluctuations to installments, it will be the same each cycle. By having a consistent repayment schedule, you also are on track to getting out of debt sooner, as long as payments are made on time. Unlike other debt consolidation options, there is no penalty for paying off a debt consolidation loan early. Together, these benefits offer an opportunity to budget your income and start saving money while paying off debt. 

How Do I Get A Get Debt Consolidation Loan?

First, you need to find a financial institution that offers debt consolidation loan services. Next, you will apply for a loan and wait to be approved. If you are approved, you must agree to your loan terms – meaning how much you’ll borrow and how long it will take for you to pay it back. Unfortunately, not all Lenders have the same terms or qualifying conditions. Finding the right loan can be time consuming, frustrating, and confusing.

 

If you’re feeling uneasy about the process, speak to the compassionate, dedicated, and knowledgeable professionals at Lendah. We make debt consolidation loans simple.

With one application, you will have loan options from across our network of over 30 lenders. 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.