Or maybe you have a loan with an adjustable rate and your payments are starting to rise each month, making your budget more and more uncomfortable.
In these situations, it may be wise to look at a debt consolidation loan. Debt consolidation allows you to pull all of your smaller existing debts into one new debt that you pay each month.
So if you need a ,000 loan and there is a 4% origination fee, you’ll only actually receive ,600. Even if the monthly payments look good on paper, you may be paying a lot more over an extended payment period.
You can use the APR to compare interest rates and fees, but you also need to consider how much you’ll spend on interest over the entire loan term.
Because interest rates on credit cards are so high, it’s possible that you can find a lower rate on a debt consolidation loan instead. However, your actual rate depends on a number of factors, especially your credit score.
It’s important to compare interest rates and total cost of the loan to your current payments to make sure you don’t end up paying more over time.
In fact, the average Avant borrower using the funds for debt consolidation sees a 12-point increase within the first six months.
So who can get a debt consolidation loan through Avant?
After that, if you think that a debt consolidation loan sounds like a good option, we’ll help you find some of the best lenders available online.
The goal of a debt consolidation loan is to save you money.
Another advantage of taking out a debt consolidation loan is that it can actually help increase your credit score.
Avant is designed for borrowers with average credit or better and offers a number of perks when you choose a debt consolidation loan.
You can get help with your debt management by getting free access to resources, plus you receive regular updates on your Vantage Score to track your credit repair process.
For some people, it’s a smart choice that gets your debts organized while potentially lowering your monthly payments. When you take out a personal loan for debt consolidation, you receive funds to pay off all of your existing debt, like your credit card balances and high-interest loans.