Online debt consolidation essentially rolls high-interest debts -including credit card bills- into one single lower-interest payment. In fact, it can reduce your total debt and even reorganize it so you can pay it off as fast as possible, which can help you finance your business growth.
Getting to this point, in case you’re with a controllable amount of debt and plant to restructure several bills, then the online debt consolidation represents the most effective approach you can take in order to make this happen.
In case you are thinking to make use of it, here are three things you need to know about online debt consolidation.
How does it work?
There are basically two ways to consolidate debt online, both of which concentrate the debt payments in only one monthly bill.
The first way is to get a 0 percent interest, transferring each of your debts onto the credit card and then pay the balance in full during the promo period. The second way is to simply get a fixed-rate debt consolidation loan, which essentially means that you will use the loan money in order to pay the debt, and then pay back the loan in different installments over a pre-determined set term.
While there are two other additional ways to consolidate your debt online by taking out a home equity loan or a $401,000 loan, these two options involve a lot of unnecessary risks, considering that you are involving your retirement or your home.
Does online debt consolidation worth it?
While many believe this is not a good option considering that most online debt consolidation companies are mainly concerned about profiting, and the fact that this is a way to solve financial issues in an “unorthodox manner” for a lot of customers, the truth is that this is the most effective option you can take once you feel that your finances got out of control.
After all, online debt consolidators is always the greatest option to take out certain loan, in order to pay off multiple ones in the most efficient manner, providing the opportunity to make only one loan payment every month.
Ideally, almost every single debt consolidation loan has a lower interest rate or even a longer payment term, which allows anyone to reduce the monthly payment or to pay the loan off faster. Basically, this is one of those things that is always better to have it than not to.
Best online debt consolidation loans for bad credit
Believe it or not, there are plenty of online debt consolidation loans for bad credit, meaning that far from being something that only those with a stable financial situation can use, it is actually available for almost any kind of customer.
This way, if you have what is commonly known as a troubled credit, one of the best options you have is Personal Loans, which connects any applicant with a lender or lending partner within its wide network.
While it is a fact that a low credit score could make the matching process a little bit complicated, the truth is that no one is turned away and you can always find a solution that gets you out of trouble. In fact, with Personal Loans the interest rates on loans are as high as $35,000 range from 5.99 percent to 35.99 percent with repayment schedules up to 72 months.
Another great option for those with bad credit is Bad Credit Loans, which has the reputation of helping customers since the year 1998.
The beauty about this company is the fact that it not only can connect any borrower to lenders but also offer the most useful online advice about when to borrow, how to choose the right loan in order to spend the proceeds in the best way and even how to set a budget in order to pay off the loan as fast as possible. Also, its partners lend up to $5,000 at rates that range from 5.99 percent to 35.99 percent.
Finally, another good and reliable option you have is Upstart, which was launched by former Google employees eight years ago. This one is considered a peer-to-peer lender that determines where an applicant attend school, profession, area of study and even job history. Its loans go as high as $50,000 at rates between 8.9 percent to 35.99 percent.