Some debts are fun when you are acquiring them, but none are fun when you pay them off.
We can very much agree on the fact that debt is a necessary evil. While on one hand, the fresh inflow of debt money solves many of our urgent needs; on the other, paying them off for a long time takes all the fun.
Legend has it that only a diamond can slay another diamond. Same goes for our debts which are with us for a long time. An intelligent way to get rid of all debt is to consider some of the best debt consolidation loans.
If you pick out the best debt consolidation loans from the market, all your debt shall be paid off- only to be replaced with a single loan to be paid off. Also, this new debt consolidation loan would have a lesser interest rate than any of your old debts.
So tell your old debt-masters to pass the baton to your new debt consolidator, and reduce your multiple headaches to a single, much milder headache!
Here’s a list of Top 10 best debt consolidation loans in the market. If you’re considering clubbing your debts, these are your best bets.
1. Payoff
Payoff’s personal loans are exclusively offered to borrowers who are looking to consolidate debt. This makes them the best debt consolidation loan choice because their fee and rate structure is a true resemblance of what they do.
With fixed debt consolidation rates and uninterrupted customer support, Payoff literally walks you through the whole debt consolidation process. This option is helpful if you’re looking to consolidate your credit card debt.
If you’re looking to be funded quickly and consolidate your debt real fast, Payoff might just do the trick for you. Let’s look into the specifics below:
- Loan Amount: $5,000 to $35,000
- Interest Rate: 5.99% to 24.99% APR
- Origination Fee: 0% to 5%
- Time of Funding: Two to Seven business days
- Payback Period: 2 to 5 years
Verdict: If you’re stacked up on credit card debt and cannot take it anymore, Payoff can take all your troubles away. Not only will a debt consolidation loan from Payoff reduce total debt by a considerable amount, but it’ll also encourage enormous savings too.
2. BestEgg
If you’re looking to pay off all your debt at once at a decent credit score, BestEgg might be one of the best debt consolidation loans you can get. Consolidating credit card debt is really crucial as interest rates keep scaling new heights.
For what it’s worth, a customer with a good credit score can get a debt consolidation loan from BestEgg at less than 10%. Along with this, fast funding options are an added jewel to BestEgg’s nest. However, it isn’t the best choice for people with bad credit. Let’s take a peek on what’s inside:
- Loan Amount: $2,000 to $35,000
- Interest Rate: 5.99% to 29.99% APR
- Origination Fee: 0.99% to 5.99%
- Time of Funding: as little as One business day
- Payback Period: 3 or 5 years
Verdict: BestEgg is relatively new in debt consolidation lenders’ market, but it has made a mark in recent years. As for its credibility, we give full marks for that. As for APR, you’re in luck if you have a good credit score. Also, quick funding time makes BestEgg a tough contender.
3. Upstart
The purpose of debt consolidation is to reduce your debt worries and get rid of high-interest rates, all for a single debt with a much lower interest rate. Upstart is the best be when it comes to consumers with low credit scores.
Upstart is the best debt consolidation loan option if the consumer has tonnes of unsecured debt- be it a credit card, personal loan, or anything. Covering amounts up to $50,000 in one go; Upstart is a great option for paying off all the debt at once.
With a decent time frame and reduced interest rates, Upstart is a great choice for debt consolidation, taking it to the top spot. Let’s delve into some specifics.
- Loan Amount: $1,000 to $50,000
- Interest Rate: 7.73% to 29.99% APR
- Origination Fee: 0% to 8%
- Time of Funding: as little as One business day
- Payback Period: 3 to 5 years
Verdict: If one is struggling to pay off his/her unsecured debts and is fed up of high-interest rates, Upstart might be a good place to start. As a relatively new P2P lender, Upstart’s focus is on younger lenders with a short credit history, take your pick!
4. LendingClub
You might be doing well in life by carrying yourself and your family with a decent income, but along with that your debt-laden shoulders cannot shrug that hard to let it go. In that case, LendingClub is the best debt consolidation loan option for you.
If you have a record of responsible borrowing i.e. if you pay off your recurring installments on time but still can’t go the extra mile to leave all debt behind once and for all, LendingClub would be happy to grant you a personal loan to consolidate your debt.
LendingClub also offers the option to pay off your creditors directly if you meet its requirements. However, under this option borrowers have to utilize up to 80% of their loan amount to pay off outstanding debt. As for the specifics, let’s have a look:
- Loan Amount: $1,000 to $40,000
- Interest Rate: 6.95% to 35.89% APR
- Origination Fee: 1% to 6%
- Time of Funding: up to One Week
- Payback Period: 3 to 5 years
Verdict: If you’ve got a decent credit score and a good income, LendingClub would treat you like a King and pay off all your creditors by itself. When that’s done, you can easily pay them off in three to five years at a much lower APR.
5. FreedomPlus
With lucrative discounts and countless awards for one of the best debt consolidation loans lender, FreedomPlus is hard to miss. In fact, they have some features that only a few other personal loan lenders offer to people.
For a start, there’s a Direct Pay Discount, with which FreedomPlus offers an option to directly pay off customer’s debt on his/her behalf. See a massive drop of one to three percent and pay off all your debt successfully with FreedomPlus.
There’s a co-signer discount too; if you have a person co-signing for you, you may get a big discount on the interest rate. Also, a decent credit score might get you qualified with FreedomPlus.
- Loan Amount: $10,000 to $35,000
- Interest Rate: 4.99% to 29.99% APR
- Origination Fee: 0% to 5%
- Time of Funding: Two business days (or as they say 48 hours)
- Payback Period: 2 to 5 years
Verdict: FreedomPlus is a great option to consolidate your debt. Their direct pay discount is a fabulous choice to get rid of all your debt at once and replace it with a much safer option. Also, if you’ve got a co-signer, you’re in for a treat.
6. Prosper
Remember that power-packed phone which is well worth its price? Prosper is just that. It is the epitome of P2P lending that only offers top of the line lenders for your service. Prosper’s commitment to quality of service guarantees authenticity.
For people with decent credit scores and a good income, prosper is the best debt consolidation loan option. Not only do they give out a considerably high amount (up to $40,000) but they also make sure that lenders in question are good at what they do.
- Loan Amount: $2,000 to $40,000
- Interest Rate: 6.95% to 35.99% APR
- Origination Fee: 2.4% to 5%
- Time of Funding: One to Three business days
- Payback Period: 3 or 5 years
Verdict: If you’re the one for quality over quantity, Prosper is the right match for you. Their soft credit check might get you approved even with a less-than-decent credit score. With experienced loan dealers in its cavalry, Prosper is one trustworthy lender.
7. Avant
Avant is the best debt consolidation loan option for bad credit. Avant is always there to help the middle-class American consumer, and low-credit requirement makes it a great option for anyone who wants to consolidate his/her debt irrespective of income.
Minimum gross annual income requirement is just $20,000 and qualify for a personal loan is no biggie. After that, one can use this loan from Avant to consolidate debt. If you’re looking for flexibility in loan payments then Avant might be your perfect match.
- Loan Amount: $2,000 to $35,000
- Interest Rate: 9.95% to 35.99%
- Origination Fee: 0% to 4.75% Administrative Fee
- Time of Funding: One business day
- Payback Period: 2 to 5 years
Verdict: Avant is the best choice if you’re looking for the best debt consolidation loan for bad credit. Also, even people with low income have a chance to clear off all their debts and start afresh with Avant to their rescue.
8. Marcus by Goldman Sachs
Household name Goldman Sachs’ Marcus is the best debt consolidation loan if you’re looking for a loan with flexible loan term. The long payback periods make it a good choice for someone who wants to consolidate his/her debt slow and steady.
The ‘no-fees’ strategy of Marcus is quite eye-catching. With zero origination fee and zero late fees, Marcus stands out from other debt consolidator lenders in this list. Also, if you make 12 payments on time, you can skip one payment without any repercussions.
- Loan Amount: $3,500 to $40,000
- Interest Rate: 6.99% to 24.99% APR
- Origination Fee: none
- Time of Funding: One to Four business days
- Payback Period: 3 to 6 years
Verdict: Sporting a good credit score? Marcus by Goldman Sachs might be a great choice for you to pay off all your debts at once. Watch out for extensive time periods though, it’s a bit too much. It’s a perfect match for borrowers with good credit.
9. SoFi
Need to consolidate a big amount of debt, like real big? SoFi might be of help! Offering personal loans up to $100,000 SoFi is a great choice when it comes to the best debt consolidation loan for big money.
For people with strong credit and good income, SoFi might be a nice route to try and consolidate your debt. Also, they have this forum of their customers where one can discuss their problems and get answers from pros. They conduct timely members-only social events too.
- Loan Amount: $5,000 to $100,000
- Interest Rate: Fixed 08% – 15.37% (with autopay); Variable 5.81% – 14.11% (with autopay)
- Origination Fee: none
- Time of Funding: Seven business days
- Payback Period: 3 to 7 years
Verdict: If you’re consolidating your debt and want to join an elite club as a bonus, SoFi might be a good choice for you. They offer decent autopay interest rates, but their funding time’s a bit too much. Otherwise, it’s a good choice for a good credit score.
10. Upgrade
Do you have a $1,000 left in your bank after paying your bills? If the answer’s yes, then you can skim this bit through. Upgrade requires a free cash flow for one to qualify for its personal loan which might be a good choice.
Upgrade calls for a decent credit score and the repayment term are pretty good too. If one can maintain required free cash flow, then Upgrade should be his/her true calling.
- Loan Amount: $1,000 to $50,000
- Interest Rate: 6.99% to 35.97%
- Origination Fee: 1% to 6%
- Time of Funding: One business day (or as they say 24 hours)
- Payback Period: 3 to 5 years
Verdict: We’d recommend that you try Upgrade after you’ve tried out the rest. The reason it’s on the bottom half is that this cash flow thing is a bit hard to maintain, nothing can deny that. Even a decent credit score can get you a loan, but it would be hard to maintain that cash flow.
Debts are like children: the smaller they are the more noise they make. This Spanish proverb pretty much sums up what is wrong with having too many debts at the same time, and it highlights the benefit of clubbing all your debt to pay it off.
These best debt consolidation loan options will work wonders when you’re in the right mind to get rid of debt. So get ready and brace yourself; become debt free by opting for a debt consolidation loan from the list of Top 10 Best Debt Consolidation Loans.
