Is Debt Consolidation Loan Helpful in Eliminating Debt?
It is a collective experience that it’s easier getting into debt than getting out. However, there are debt consolidation loans that help you save money and quickly pay off your debts. With such loans, you only have one monthly payment to make, plus its interest rate is low.
With the information below about three lenders and the loan they offer, you can choose your preferred debt consolidation loan.
Marcus by Goldman Sachs
Marcus by Goldman Sachs provides personal loan created explicitly for debt consolidation. The interest rate for the loan is fixed, and payment is monthly. Only people with a credit score of 660 and above will qualify for this loan. To get Marcus’s lowest interest rate of 5.99 percent, you will need a higher score. You do not require collateral in getting this loan, and it carries no fees.
Online application of this loan takes about five minutes, and once completed, you get the full loan in about five days. You can get loans of $3500-$40,000 to offset credit card and other debts. The interest rate is in the range of 5.99 percent APR to 28.99 percent APR. An added advantage to Marcus’s loan is that late fees are not charged. But paying late attracts additional interest making your final payment bigger. Despite being a new lender, JD Power has rated Marcus the best in customer satisfaction for a personal loan.
Advantages of a Marcus Goldman Sachs Debt Consolidation Loan
- Lowest interest rate: 99 percent APR
- Highest loan amount: $40,000
- Loan Length: 36 to 72 months
- Other benefits: No late fees
Wells Fargo provides personal loan which can be used for debt consolidation. It’s rate, term and monthly payment are fixed and are without origination fees or prepayment penalties. You get the lowest interest rate of 5.25 percent on a loan amount of $10,000 and a 35-month term. The requirements for Wells Fargo lowest rate having a bank relationship like a checking account, agreeing to automatic payments, and verifying your income.
No collateral is needed in getting the loan which ranges from $3,000 to $100,000. The loan application is online, and if approved, you could get your fund the following day. With the online tools Wells Fargo provides, you can quickly determine the amount you can save by consolidating your debt, and how much your monthly payment will be if approved for a loan.
Advantages of a Wells Fargo Personal Loan
- Lowest interest rate: 24 percent APR
- Highest loan amount: $100,000
- Loan Length: 36 months
- Other benefits: No origination fees or prepayment penalties
SunTrust provides a loan which they refer to as their Personal Credit Line Plus, which can be used for debt consolidation. Its credit limit is higher than most credit card and with a lower interest rate. This Personal Credit Line Plus loan is not restricted to only debt consolidation. It can be used for home improvements, large purchases, and multiple expensive items like college tuition. Although you don’t need collateral for the loan, you need to have a good credit score and verifiable assets worth at least $100,000.
The loan application can be online, by phone or at a SunTrust branch. The application can be completed in about15 minutes, and within 24 hours, you will be contacted by a SunTrust representative to discuss details and how to proceed. You will be submitting several documents to the bank which they will, and if approved, will contact you to close the deal.
There is a second type of loan called Select Credit Line offered by SunTrust which can be used for debt consolidation. This Credit Line offers up to $5 million, which can be used for almost anything but has to be secured with a SunTrust Bank investment account.
Advantages of a SunTrust Bank Personal Loan
- Lowest interest rate: 15 percent APR (Prime + 2.9 percent)
- Highest loan amount: $250,000
- Loan Length: 48 months
- Other benefits: No annual fees
It takes hard work and most times, a multi-step approach to pay off your debt. With a debt consolidation loan, it is easier to pay off debts, and you even get a low-interest rate and can save money. You can study any of these three options mentioned and choose the one that best suits you to get started in getting out of debt.