If you are burdened with credit card bills, medical bills, wedding expenses, auto loans, personal loans, or any other outstanding payments, it may just be the perfect time to go into debt consolidation.
The purpose of debt consolidation is to consolidate all your debts into a single, easily manageable (both payment terms and amount) loan. Remember, debt consolidation is not just bringing multiple debts under one new creditor or loan. Your aim should be to save more money each month AND pay a lower interest rate on your existing debt. Keep these things in mind as you shop around for a better loan. Many low interest, debt consolidation loans have been specifically designed to help you merge all your different debts into one. Not all of them are actually helping you though.
The first step towards a low interest debt consolidation loan is to figure out the total amount of debt you need to consolidate. We then recommend that you use a loan broker, such as Even Financial.
If you have never actually used a personal loan marketplace, you probably do not know how they work and why it might be a good idea to use one. Here is the breakdown of the business model. Even Financial has a personal relationship with all of the different personal loan providers such as Lending Club, Best Egg, Prosper, SoFi, LendingPoint, Freedom Plus, Ascend Consumer Financial, BBVA, Liberty Bank, and Upgrade.
It doesn’t cost you, the borrower, anything to fill out the application and it only takes a couple of minutes to complete the application for all of the different lenders. The application that you fill in is then checked against the lending requirements of all of the different partners. Even Financial will then give you a recommendation for the best loan that you qualify for. You will be able to see all of the loan offers just in case, so that you can choose the one that’s right for your specific situation.
If a personal loan is not an option, then the next best way to get a low interest debt consolidation loan is to place high value collateral against the loan. Collateral is simply property that you secure against the loan. If you borrow against the equity in your home for example, then you can extract a large amount with a relatively low rate of interest in most cases. The interest rate will be tax deductible as well. Those repayments have to be made on time or else the lender has the right to foreclose on your property.
*For full disclosure, we are affiliated with and do receive compensation should you choose to use Even Financial through our links within this article. This compensation keeps us writing articles and sharing important financial information.