Debt Consolidation loans
Loans up to $40,000 | APR as low as 5.99% .
Rates range from 5.99% to 28.99% APR, and loan terms range from 36 to 72 months. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. Learn more.
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What is debt consolidation?
Debt consolidation is the process of merging multiple debts into one, commonly with a credit card balance transfer, home equity loan or debt consolidation loan. Consolidating your debt could help you save money if you are able to get a lower interest rate on your debt, and could simplify the amount of payments you make per month.
If this sounds like it could help your situation, you may want to consider consolidating your debt with a debt consolidation loan from one of Quick Loan Financial licensed lenders
What is a debt consolidation loan?
A debt consolidation loan is used to combine multiple debts into a single debt. Instead of numerous payments, you would have just one recurring monthly payment. Consolidating your debt with a personal loan could also have the advantage of a fixed rate. Your rate is fixed with a one of Quick Loan Financial licensed lenders, So you’ll know exactly how much you owe each month and when your loan will be paid off. Debt consolidation can simplify your finances. And simple can be a beautiful thing.
That said, debt consolidation doesn’t eliminate your debt. It simply merges your individual debts into one. The goal is to make your debt easier to manage and to, potentially, lower your total interest payments.
Getting out of debt is a multi-step process that could include making changes to how you spend and save. If you’re not sure how you accumulated so much debt in the first place, consolidating won’t do anything to change your spending behavior. It also won’t stop you from accumulating more debt in the future. Debt consolidation can, however, be a step in the right direction.
What happens after I consolidate my debt with a personal loan?
Instead of multiple monthly payments, now you could only have one.
Once you’re approved, you’ll receive the money from your loan in a lump sum, which you can use to pay off each of your credit cards. Then you’ll only have to worry about making one monthly payment on time.
Understanding your options – when is debt consolidation a good idea?
Debt consolidation may be a good option if you’re dealing with a manageable amount of debt but just feeling overwhelmed by the number of creditors. One good indicator of when debt consolidation is a good idea is if your debt doesn’t exceed 50% of your income. If your debt exceeds 50% of your income, debt consolidation alone may not be enough to help whittle down your total debt.
When considering debt consolidation, you may want to look into your credit score. Your FICO score plays an important role in determining your interest rate and whether it makes financial sense to consolidate.
One benefit to consolidating with a one of Quick Loan Financial licensed lenders is that you’ll know exactly when your debt will be paid off, which could help keep you on track. Consolidating your debt could help with financial discipline, but consolidation works best if you combine it with a plan to stay out of debt (e.g., changing your spending behaviors and cutting spending where you can).
Will debt consolidation affect my credit score?
Your credit score depends partly on your credit card utilization ratio — that’s how much of your available credit you’ve used. Using a personal loan to pay off all or some of your credit card debt could improve your credit score because it will improve your credit utilization ratio. One thing to note is that when you consolidate your debt, your credit score may go down for a time because of the hard credit check the lender makes during the application process.
Debt consolidation vs. debt management
A debt management plan is offered by a credit counseling agency. It’s similar to debt consolidation in that you’re making one payment, but instead of paying a creditor directly, you pay the agency who disburses payments across your creditors. The agency will try to work with your creditors in an attempt to secure more favorable terms. Payments are usually made on a monthly basis for three to five years.
Another difference between debt management and debt consolidation is that you’re typically forced to close all of your credit card accounts and won’t be able to open any new lines of credit while you’re paying off your debt.
When you consolidate with a personal loan, you’ll still have access to credit. So you’ll have to impose your own spending limitations.
Benefits of debt consolidation
A debt consolidation loan allows you to replace debt across multiple creditors with a single loan. Here are a few benefits of getting a consolidation loan from Marcus.
Simplify your monthly payments
Making multiple payments each month takes extra time and effort. It can be easy to miss one (or two) and have to pay late fees. With a Marcus debt consolidation loan, you make one single payment each month.
Borrow up to $40,000
With Marcus, qualified applicants can borrow from $3,500 to $40,000 to pay off credit card debt, as well as other forms of debt.
Credit card interest rates can change. Fixed rate interest loans do not
Credit cards can have variable interest rates. Marcus personal loan rates are fixed for the life of your loan. Loans from Marcus start as low as 5.99% APR to 28.99% APR. Only the most creditworthy applicants qualify for the lowest rates. Rates will generally be higher for longer-term loans.