Can Debt Consolidation Loans Help Eliminate Your Debt?
Most people would agree that getting out of debt is a lot harder than getting into it. However, it is possible to save money and pay off your debts quicker by taking advantage of a debt consolidation loan. Such loans often come with a lower interest rate, plus you will only have one payment to make each month instead of several.
To help you choose the debt consolidation loan that is right for you, here are some specifics about three different lenders and the loans they offer.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers a personal loan specifically designed for debt consolidation. As such, the interest rate and monthly payments are fixed for the life of the loan.
To qualify for this loan, you will need a credit score of 660 or above. However, you will need an even higher score to obtain Marcus’ lowest interest rate of 6.99 percent. No collateral is required, and the loan carries no fees.
It will take you about five minutes to complete the online application. Once completed, you can receive your lump-sum funds in as little as five days.
You can borrow anywhere from $3,500 to $40,000, which can be used to pay off credit cards and other debts. Interest rates range from 5.99 percent APR to 28.99 percent APR.
One unusual benefit of this loan is that Marcus does not charge late fees. However, you will incur additional interest if you pay late, so your final payment will be larger.
Plus, J.D. Power has named Marcus number one in customer satisfaction for personal loans. This is in spite of Marcus being a relatively new lender.
Benefits of a Marcus by Goldman Sachs Debt Consolidation Loan
- Lowest Interest Rate Available: 6.99 percent APR
- Maximum Loan Amount: $40,000
- Loan Length: 36 to 72 months
- Other Benefit: No late fees
Wells Fargo
Wells Fargo offers a personal loan that can be used for debt consolidation. It has a fixed rate, fixed term, and fixed monthly payments. There are no origination fees or prepayment penalties. The lowest interest rate is 5.24 percent. This is based on a loan amount of $10,000 and a 35-month term.
In order to receive Wells Fargo’s lowest rate, you will need to have a bank relationship, such as a checking account, and agree to automatic payments. It is likely that you will also have to verify your income.
Loans are available from $3,000 to $100,000, and no collateral is required. You can apply for this loan by completing a simple online application and get your funds by the next day if you are approved. Additionally, Wells Fargo has several tools available online that make it easy to determine how much money you can save by consolidating your debts and the amount of your monthly payment once you are approved for a loan.
Benefits of a Wells Fargo Personal Loan
- Lowest Interest Rate Available: 5.24 percent APR
- Maximum Loan Amount: $100,000
- Loan Length: 36 months
- Other Benefits: No origination fees or prepayment penalties
SunTrust Bank
SunTrust Bank offers the Personal Credit Line Plus loan that can be used for debt consolidation purposes. It has a higher credit limit than most credit cards and carries a lower interest rate.
In addition to debt consolidation, you can use this loan for home improvements, large purchases, and multiple expensive items, such as college tuition. No collateral is required to secure the loan. However, you must have a good credit rating and at least $100,000 in verifiable assets.
You can apply for this loan online, by phone, or at a SunTrust branch. The application process will take about 15 minutes. Within 24 hours, a SunTrust representative will contact you to discuss the process in more detail and tell you how to proceed. You will be required to submit various documents, which the bank will review. The bank will then make a final decision and schedule a closing at one of its branches if you are approved.
It should be noted here that SunTrust Bank offers a second type of loan that can be used for debt consolidation. It is known as the Select Credit Line. It is a revolving line of credit that can be used for almost any purpose up to a maximum amount of $5 million. However, it has to be secured with a SunTrust Bank investment account.
Benefits of a SunTrust Bank Personal Loan
- Lowest Interest Rate Available: 6.74 percent APR
- Maximum Loan Amount: $250,000
- Loan Length: 48 months
- Other Benefit: No annual fees
Wrapping Up
Getting out of debt is hard work and usually requires a multi-step approach.
One useful tool is a debt consolidation loan, which can be used to combine multiple debts into one. In many cases, you can get a relatively low-interest rate, which can save you money and help you get out of debt quicker.
If you are considering a debt consolidation loan, you owe it to yourself to investigate the three options mentioned to determine which one might be right for you.