Consolidating loans tips and tricks
As someone looking to consolidate debt, you probably won’t have a rating high enough to get a rate but it’s worth going to the site and checking your rate which will not impact your credit score.
Even if your interest rate is manageable, your monthly payments may not be so you might consider consolidating your loans to lower that monthly payment. Twenty percent of Americans have one or more medical debt on their credit reports, and more than half of collection items on credit reports are for medical debt.We have always emphasized that if you have debt, you need a plan to pay it off.Attacking debt with a plan means you will pay it off more quickly and it will cost you less.Remember, your debt is an emergency, and like an emergency, you want it over with as soon as possible.The promise of a lower monthly payment can be seductive if you are struggling with debt, but the reason the monthly payment is reduced is that the life of the loan is increased.Forty-four million Americans have student loan debt, and that debt is often spread out over multiple loans and multiple lenders making the payments hard to manage.
The numbers vary by disbursement dates, but the federal student loan interest rate is between 4.45%-7%.
The average interest rate on a credit card is 16.32%.
When your interest rate is so high, it can take to pay off debt especially if you are only making the monthly minimum payments.
They often make outlandish promises like guaranteed results, promise to give you a loan no matter how weak your credit or without asking you to provide any financial information.
You will be asked for some kind of upfront fee or payment before the loan can be approved.
If you have credit card debt, consider getting credit consolidation loans at Lending Club. Lending Club grades borrowers based on things like their credit score, the amount of the loan they’re seeking, and the term of the loan.