Unsecured Debt Consolidation Loan

Are you looking for a way to simplify your bill payments, lower your interest rates, and create one affordable payment? An unsecured debt consolidation loan lets you pay off your existing credit card debt, medical bills, and other personal debt with one loan.

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Unsecured Debt Consolidation Loan - Compare Terms

An unsecured debt consolidation loan is a simple financial product based on the following components: Amount of loan, the term (number of months to repay the loan), interest rate, and fees.

The most common fee is an origination fee, which is deducted from the loan when the funds are sent to your account. For example, on a $10,000 loan with a 5% origination fee, you will incur a $500 origination fee and receive $9,500 upon successful issuance of your loan.

Lenders are obliged to show you an additional interest rate, APR (Annual Percentage Rate), that takes into consideration the interest rate, fees, and length of the loan. Check out the image to see some examples of different offers for a $5,000 and their respective APR.

People also ask

There are a lot of good reasons to take out a debt consolidation loan. Most importantly, the loan should improve your financial situation. Here are a few of the major reasons: Lower your monthly payment Save money by lowering your interest rate. Pay-off your loans quickly. Easier payment schedule with just one monthly payment. Lower your credit utilization rates on your credit card.

Your credit score is a key factor in determining whether you qualify for a loan, as well as the interest rate on the loan. While an excellent credit score will get you the best rates, there are unsecured debt consolidation loans for people with bad credit. Interest rates vary. In general, the shorter the loan repayment period, the lower the interest rate. If you can afford larger monthly payments, then you can choose a shorter term loan. Interest rates also vary by lenders. It is important to shop around and compare your options.

Personal loans are offered by banks, credit unions, and online lenders. Each lender has their own model for approving loans and pricing their loan.

Yes, it is possible to get a bad credit debt consolidation loan. Expect to pay higher interest rates than borrowers with excellent credit. However, even an unsecured loan allows you to pay off high interest rate credit cards, create an affordable monthly fixed payment, and set you on the road to debt freedom.

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Bills.com makes it easy to shop for a debt consolidation loan. Start by filling in your credit score, zip code, loan purpose, and the amount of loan you need. Check out different offers and click on the appropriate ones.

Unsecured Debt Consolidation Loan Alternatives

Is an unsecured loan the right choice for you? While a personal loan lets you make one payment over a short period, it isn't the right debt solution for everyone. Check out other ways to consolidate your debt.

Do you want a low monthly payment? If you have equity in your home, then a home equity loan, or cash-out mortgage offer you low-interest rates and a long-term payment schedule. You don't need excellent credit to qualify.

 If you are struggling with your monthly payment, your credit is damaged (or about to tank), and in financial hardship, then consider a debt settlement program. If you qualify, then you might be debt free within 2-5 years. 

Check Your Options: Unsecured Debt Consolidation Loan versus other Alternatives

If you aren't sure which is your best alternative, then check out Bills.com Debt Navigator. Bills.com Debt Navigator tool helps you analyze the best bill consolidation alternatives. Getting debt help is as easy as answering a few questions, allowing a soft pull on your credit, with no impact on your credit score, and pushing a button. You will get a picture of your debt on one page as well as up to five different debt relief solutions. Choose the recommended solution that best fits your situation and helps you consolidate your debt.