Personal loans for consolidating bills
With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards.
You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years.
However, a balance transfer card requires discipline to pay it off before the promotional rate expires, usually no more than 21 months.
The amount of credit card debt you can transfer is limited, typically no more than ,000.
That means you’ll pay less each month to just one lender instead of many.
While it’s not as drastic as debt settlement or debt management, debt consolidation has its own pitfalls that you need to be aware of.
I’ll also explain what debt consolidation is, different types of debt consolidation loans, where to get debt consolidation loans, alternatives to debt consolidation, and how to avoid scams.In fact, some of our investors were also borrowers at one point and chose to consolidate their personal loans into one low interest monthly payment. And since Prosper offers access only to unsecured loans, you need not own your home for debt consolidation. When you’ve fallen behind on your payments, it can feel like there’s nowhere to turn.Prosper’s online electronic payment system lets you manage your entire consolidation loan directly and with ease.
If you’re making the minimum monthly payments on credit card debt, chances are you’re mostly paying the interest, and not paying down the actual principal by much. And if you miss payments or exceed your limit, your credit card interest rates can go up.
No credit checks will be undertaken without your knowledge and your details will not be given to any other third parties..