Assess your current debt total by listing out your debts, including credit cards, student loans, car loans and any other accounts.Track your spending to see where your money goes each month, identifying areas where you may be able to cut back.Compare your debt payment obligations and your spending to create a budget and determine how much you can realistically pay on your debt each month.Once you know how much you can realistically allocate to paying down your debt each month, you can use the amount to determine terms for your loan.When you do a hard inquiry during the final approval process, it will be reflected on your credit report. Although debt consolidation loans are a legitimate solution for eliminating debt, some other debt consolidation options are scams.However, if you have multiple hard inquiries within a 45-day period, it’s considered rate shopping and will only count as a single credit inquiry. It’s best to stick with trusted, well-established lenders such as the ones recommended on our list.This makes applying for a loan convenient, and some providers offer instant approval online, so you can find out right away if a loan is going to work for you.
However, a longer loan term means you may pay more interest total.
Unsecured debt consolidation loans can have income requirements as low as ,000 annually, debt-to-income ratios of up to 50 percent and minimum FICO credit scores as low as 600.
Unsecured debt consolidation loans are offered online through banks and marketplace lenders.
If you have the collateral and can meet the requirements, a secured loan may save you money on interest as you pay down your debt.
Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.
There are two types of debt consolidation loans: secured and unsecured.