Personal Loans for Debt Consolidation

Taking a personal loan to meet needs is arguably not a wise thing. This is because personal loans have certainly increased debt, making it more difficult for you to replace them. Especially if you take a personal loan for needs such as vacation, buying a car, or getting married, it is highly discouraged. But how about taking personal loans for debt consolidation?

Illustration (Source: fool.com)

Debt Consolidation is the way out of all your debt. Personal loans can be used to consolidate your debt and increase monthly cash. Of the various opportunities, personal loans offer debt consolidation perhaps the most important.

Best Personal Loans for Debt Consolidation

What is debt consolidation? This debt is a state in which the existence of a merger between several small loans forms one loan with a large value. With this debt consolidation, those of you who have several debts at once can combine them into a larger loan.

The purpose of debt consolidation is to alleviate the bank interest paid when making installments.

Besides being able to get lower interest, you can also be more comfortable when paying debts because you only have one loan. So every month you only need to make one transaction. No more making transactions many times which will also cost money.

It is in this condition of debt consolidation that the right time to apply for a loan. Because usually, the more the loan amount, the lower the loan cost or interest rate. So, if you have several debts at once, you can use a personal loan to consolidate debt so that the interest paid can be lighter.

There are several options for applying for a personal loan:

1. Upgrade

The upgrade was founded in 2017 by the Fintech executive team. Its headquarters are located in San Francisco. Upgrades offer flexibility in terms of repayment and loan amount.

Despite offering more competitive interest rates, the platform is still the best on this list with poor or fair credit score acceptance.

The platform has accessible loan terms making it feasible for countless borrowers.

Upgrade offers the easiest interface you can submit your application using the Upgrade web portal and process it.

2. SoFi

Also known as Social Finance, Inc. It is a Fintech company founded in 2011 by students at Stanford business school. SoFi offers student refinancing combined with other services.

The application is quite easy. It can be done online or through a phone call. You must pre-qualify for the loan stating the reason you applied for as well as the amount required.

Earn funds in three days or less and enjoy discounted rates when you sign up for SoFi's automated payment program.

SoFi offers uncompetitive interest rates which means you can save more money when you combine your debt with personal loans. Eligible borrowers can enjoy an APR of between 5.24% and 19.88% significantly over the average APR on credit cards.

3. Avant

Avant is an online lender founded in 2012 and headquartered in Chicago Illinois.

Offers unsecured personal loans that can be used to cover costs and consolidate existing debt. The company is registered in 42 states throughout the United States.

Avant offers range from $2,000 to $35,000. With Avant, you don't have to worry about bad debts when applying.

Web-Bank-affiliated funding platforms allow borrowers with good or bad credit scores to get loans with competitive fees, fast funding, and repayment terms.

The best feature of Avant is receiving a low credit score and refinancing personal loans.

Avant has a mobile App available for both Android and iOS. It's easy to file and manage your personal online.

Hopefully, this information about "personal loans for debt consolidation" will be useful.

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