Debt consolidation is one way to tackle loans and personal credit card debt you accrue.
Many people carry multiple credit cards, each with its own balance and interest rate. Often, it makese more sense to consolidate many debts into one single debt, as you may lower your rate and avoid some service fees on multiple accounts.
There are, however, several different ways to approach debt consolidation and a few tricks to know.
Debt Consolidation Loans
Debt consolidation loans offer the opportunity to roll all of your debts into one loan. Instead of paying several different card companies or banks, you take out a larger loan to pay off all of the smaller loans. It's incredibly important to make sure that the rate of the loan you get is lower than the overall rate you were paying on all of the loans you are consolidating, otherwise, consolidating your debt will just lead to more debt!
For debt consolidation rates, please see the P2P Debt Consolidation Loan Calculator
Requirements for Debt Consolidation
Online Personal Loan Providers
- You must have a decent credit score.
- It helps to be current on your existing debts.
- If you're going to refinance a loan, always look for a lower rate on the new loan.
- You will need supporting income sufficient to make your new debt consolidation loan payments.
Debt Consolidation Loans via P2P
- P2P Personal Loans
Borrowers who wish to consolidate personal loans can get a loan via P2P Credit.
- P2P Debt Consolidation Loan Calculator
Consumers who wish to consolidate (multiple) debts into one (single) debt consolidation loan should check the rates on their existing loans (using the Debt Consolidation Loan Calculator, above).
P2P debt consolidation loans range in rate from 5.93% to 35.65%. The rate of your loan will depend upon your credit score and credit history. Usually, consolidation makes more sense than paying high rates on multiple credit card debts.
For debt consolidation, please visit P2P Credit's Debt Consolidation Loan Page