Excessive debt can feel crippling. Whether you’ve maxed out your credit cards on a family emergency or you’ve been caught in the vicious cycle of payday loans after your car broke down, you want to break free.
Sometimes debt stems from a seemingly good decision. Student loan debt has reached a whopping $1.3 trillion, and the average student carries anywhere between $30,000 and $50,000 in debt after graduating college. The amount of student loan debt has more than doubled since 2007, according to the Federal Reserve.
No matter how we got into debt, it’s getting out that poses the larger problem. A personal loan through a nonbank lender such as loanDepot can help you manage your debt and pay it off faster. After months of making minimum payments and paying hundreds or thousands of dollars in interest, it’s probably time to explore a consolidation solution.
With a personal loan for debt consolidation, the loan term is typically fixed between three to five years and the payment will include both interest and principal, meaning at the end of the term, the loan will be completely paid off and you will be debt free.
For some, the thought of consolidating debt can be daunting. Will you qualify for the loan? How will it affect your credit report? Will you be able to afford the new, regular payment?
Well, don’t worry. Here are six reasons a debt consolidation to a personal loan can put your mind at ease and get your balance sheet shifting from red to black faster than you may think:
Lower interest rate: A personal loan can have significantly lower interest rates than credit cards and traditional bank programs.
Flexible and finite payment terms: Unlike a payday loan that, as the name states, requires you to pay it back on your next payday, a personal loan can have flexible payment terms, which means you can choose to pay off the loan in as little as three years or in as many as five. Because you are paying both principal and interest, you will be on pace to have it fully paid off by the completion of the loan term you choose. Also, at loanDepot, there are no prepayment penalties, so you can pay it off even sooner if you’d like.
You can borrow up to $35,000: Don’t let ballooning credit card or payday loan interest scare you. With a consolidation loan, you can borrow up to $35,000 to pay off those high-interest debts. loanDepot uses proprietary marketplace lending technology to provide consumers with personal loans at a lower cost than many traditional bank loan programs.
Low fees: Many personal loans only require a one-time processing fee compared to credit cards, which often charge annual and/or balance-transfer fees.
No credit impact to see what you qualify for: At loanDepot, you can see personalized loan offers with amounts and interest rates without it affecting your credit score or showing up on your credit report. This is possible using technology and a ‘soft credit check.’
The process is fast and easy: You can receive approval for a personal loan from loanDepot in a matter of minutes and the money transferred to your checking account in just a few days. This means you won’t have to pay another cent of that high interest, and you can be well on your way to being debt free in a few years.Call today for more information.
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