Best Personal Loans Debt Consolidation Companies: 8 Options You Want To See

Lender holding up sign showing how you can become debt free with best personal loans debt consolidation

What Are the Best Personal Loans Debt Consolidation Companies?

If you’re struggling to pay off multiple debts, it might be time to consider personal debt consolidation. The best personal loans debt consolidation companies will help you reduce the number of creditors you are paying.

Are you in the red and trying to pay off multiple creditors? The average American household is facing $137,063 in debt.  More than likely you’re like many Americans that are in the hole and carry some type of personal debt.

If that sounds like you, then our list will help you determine which company is right for you. Let’s get into it!

Best Personal Loans Debt Consolidation Companies

With debt combination, you need to look at more than interest rates. Look for a company that is willing to work with borrowers in your particular situation.

Consider its reputation on websites like the Better Business Bureau. Look at what the additional terms are, such as penalties and fees are on the balance due.

LendingClub

Available in every state except for Iowa, LendingClub will advance personal loans up to $40,000. They have competitive interest rates at 5.98% to 35.89%.

The website is clear in how they determine their rates and fees. The company has an A+ rating with the Better Business Bureau.

The downside is that you can only get a personal loan to resolve your indebtedness with a term of 36 or 60 months. It also may take a week before you receive your funds.

You’ll need to have a credit score of 600 as they tend to be pickier in who they lend to. There is also a check processing fee of $7 if you pay by check.

Avant

Avant is available in all states offering personal loans from $2,000 to $35,000 to consolidate debt. They have an A+ rating with the Better Business Bureau.

Once you’ve signed the agreement, Avant deposits your money the next business day. The company appeals to those who have a slightly lower score than borrows with LendingClub.

Because they lend to less creditworthy borrowers, their interest rates are higher. You can expect to pay 9.95% to 35.99%.

Upstart

Upstart is a newer peer to peer lending service in the market. They’re perfect for younger borrowers who may have no or very little credit history.

Borrowers can use substitute information to determine their personal loan APR. This would include items like your alma mater, major, GPA, and job history.business women walking through loan office

They will loan anywhere from $1,000 to $50,000. Their interest rates tend to be on the higher side at 7.73% to 29.99%. Loans terms are only three or five years.

OneMain

If you’re looking for a lender with a physical branch to consolidate your debt, then OneMain is a great option. They have 1,600 branches across the country.

They provide personal loans from $1,500 to $30,000. Their customer focus is on those who do not have good credit.

Because of this, you’ll find that their interest rates are quite high starting at 9.99% and going up to 35.99%. They offer secured and unsecured personal loans.

If you need educational materials, their website is a great resource. You will find information about personal loans and planning for a secure financial future.

The company has an A+ rating with the Better Business Bureau and is considered one of the best personal loans debt consolidation companies around. The downside is that they service 44 states, so you’ll need to check that they service your state.

LightStream

LightStream offers debt consolidation solutions to those who meet their strict credit score standards. Because they are extremely picky, you’ll find some of the lowest interest rates at 5.89% to 14.25%.

They furnish personal loans from $5,000 to $100,000. If you’re looking to consolidate a large amount of debt, LightStream is going to be your top option.

To be able to take advantage of the lowest interest rates, you’ll need to sign up for AutoPay prior to loan funding. You’ll need to wait for a hard check on your credit score to find out if they will offer a secured or unsecured personal loan.


What is a Personal Loan – Watch

 

Prosper

Prosper is another lender that will consider more than your credit history when determining your APR. They do require a minimum credit score of 640, though.

Borrowers can obtain easy personal loans for $2,000 to $35,000. Interest rates are reasonable to high at 5.99% to 35.99%.

The website is easy to navigate and transparent when it comes to their rates and any potential fees. With the ease of use and full rate and fee transparency, this provider certainly rates as one of the best personal loans debt consolidation companies.

One of the fees charged is an origination fee of 1% to 5%. There are also late payment fees of $15 or 5% depending on the outstanding liability.

National Debt Relief

National Debt Relief settles debt between $1,000 to $100,000. They are different than other lenders as they negotiate your debts with creditors instead of lending you the total payoff amount.asphalt with you got this written in white chalk

Upon approval for assistance, you will deposit money into a savings account. During this time, you will stop making payments to your creditors.

Within three to six months, National negotiates a payoff amount with the money in your savings account. You will pay National a fee for each debt they successfully negotiate for you.

The downside is your credit score will drop significantly from stopping payments. This will take time to recover from.

The service is not available in a handful of states. The entire process will take two to four years for complete settlement of your outstandings.

Accredited Debt Relief

Accredited will work with multiple companies who relieve debt. The process is similar to National where you discontinue paying your debts and instead put money into a savings account.

Accredited and their partners negotiate your debt payoff with the money you’ve deposited. This system is entirely dependant on your depositing money into your savings account.

You will need to have a minimum of $7,500 in debt for approval. There are no fees until they settle your obligation.

Unfortunately, your credit score will suffer while you are not paying your creditors. There is also a money back guarantee. Accredited also has an A+ rating with the Better Business Bureau.

Consolidate Your Debt

The best personal loans debt consolidation companies are going to assist in finding a manageable monthly payment, interest rate, and term. The goal is to help you get financially secure again.

Take advantage of the educational resources that many of the companies offer. Shop around for the best interest rate and terms. If you don’t want to take another loan, consider a company that will negotiate a payoff of your current loans.

Learn how to improve your credit score once you have your debt paid off!

Get Control of Your Credit With Our Free Ebook

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6 Comments

  1. Wow Patrick, what a useful article! 

    If I would had to looked up all this info, it would have taken me half a day.

    Thank you so much for sharing your expertise and doing the research for me.

    It came as quite a shock what the average debt is in American households, that is quite a high amount. I assume home mortgage is included?

    I did not know about upstart and that sounds very interesting for my boys in the future.

    Do you have any tips for the most interesting mortgage refinancing?

    • Hi Wendy – Glad to be of service.

      Yes that number includes mortgages along with credit cards, auto loans and student loan debt.

      I agree the Upstart peer to peer model is a great idea for younger borrowers that don’t have much of a credit history.  Using substitute information to get approved for a small personal loan is a a great opportunity to establish credit.

      Here is an article I wrote that may be of assistance related to interesting mortgage financing opportunities.  Check out the section Availability of Alternative Loan Types

      Thanks

  2. Fantastic info at a time I really need it.

    I  should say we have accumulated close to 90 grand in debt and I am disabled and my wife(the breadwinner) just got diagnosed with cancer, terminal.

    She doesn’t want to leave me with all the debt!

    Very stressful and not good when she’s sick.

    So, THANKS. This info will cheer her up significantly!

    • Hi Dennis,

      Thanks for you comment. Sorry to hear about your spouses health.

      This list of personal loan debt consolidation companies is just a starter. There are others, so I would recommend you do some additional research to make sure you are getting the best guidance.  Particularly in your current dilemma.

      SoFi Personal Loans might be another place to look or one of the debt relief companies listed at the bottom of the article.

      Send me an email or reach out to me through the contact page on my site if you need any additional help.

      Best of luck. 

  3. Hi there,
    What great information, and timely. I’ve been thinking about consolidating three high-interest loans, and your information has given me some great ideas.

    I’m going to check out Lending Club and Avant. I appreciate having their names to start the process. It can be so intimidating just looking online. You never know for sure if it’s a company you will be happy dealing with.

    I also downloaded your book! Thanks for all the great resources.

    Nancy

    • Great to hear you found the article useful.  The economy has improved in recent years giving consumers lots of options in lending sources.  The Fin-tech sector has seen tremendous growth and are a great option to the more expensive traditional brick and mortar financing.

      Avant and Lending club are two of the best personal loans debt consolidation companies online today.  But don’t stop there. Try a few of the other suggested lenders to nail down the best deal possible.  As always, do your research and make sure you are comfortable with your lender of choice.

      Thanks for downloading the e-book.  I know it will come in handy as you work toward improving your credit.  Send me an email or contact me if you have any questions.

      All the best.

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