It’s normal to feel overwhelmed when you are deep in debt and you have fallen behind with your payments. The good news is that you can opt to consolidate debt as a fast and effective means of paying your debts at lower interest rates.
Debt consolidation is more of a personal loan that you take out to pay off several loans and then you pay it back within a period of 2 to 7 years. You can use this strategy to pay off medical bills, credit cards, payday loans and personal loans.
With this in mind, here are some of the best unsecured loans which you can use to consolidate debt.
Prosper is one of the best providers of unsecured loans. Unlike others, this peer-to-peer lender tends to be quite flexible with their loan terms.
With a credit score of 640, you can get an unsecured loan to consolidate your debts. Prosper considers a wide range of factors when approving loan applications. With loan options of $2000 to $35,000 and an interest rate of approximately 6%, you can see why most people prefer this company.
Their loan application process is transparent and you will not encounter any hidden fees.
If you are looking for a reliable alternative to Prosper, then you should consider the Lending Club. This company is available in more than 49 states.
Their rates are competitive, ranging from 5.99% to 32.99%. Unlike Prosper, Lending Club places a heavy emphasis on your credit score. Therefore, it might prove quite challenging to get a loan from them, especially if you have a poor credit score.
With Lending Club, you can borrow up to $40,000 and you will not incur any pre-payment penalty.
If you are looking for an unsecured loan and you have an excellent credit score, Light Stream is a reliable lender to consider. Their rates are as low as 2.19%, although only a few individuals qualify for that category.
Most people get personal loans at a rate of 5.99% to 9.99%. Unlike other lenders, Light Stream doesn’t consider your credit score when determining whether to give you a loan or not.
Instead, they consider an established pattern of financial health. If you have viable investments, stable employment and no delinquencies within the last five years, then you will enjoy a fast loan approval process.
Despite being a new player in this field, Avant has already established itself as a reliable lender when it comes to unsecured loans. If you have a poor credit score and you are looking for a personal loan, then you should consider Avant.
The company gives unsecured loans to people with a credit rating of as low as 580. They offer a wide range of loan options, with the maximum amount being $35,000. With their flexible repayment schedule, no prepayment fines and same day loan availability, Avant is heads and shoulders above the rest.
Final Thoughts On The Best Unsecured Loans To Consolidate Debt
Debt consolidation offers various advantages such as lower monthly payments, interest savings and an improved credit score. However, since it’s a major financial decision, consider the available options before applying for a debt consolidation loan.