best debt consolidation companies

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best debt consolidation companies

Best Debt Consolidation Loan Companies for 2018

When you’ve fallen behind on your payments, it can feel like there’s nowhere to turn. One potential option to get organized and streamline your bills is debt consolidation. Debt consolidation lets you roll several debts into one loan with a lower interest rate and longer payment term. That means you’ll pay less each month to just one lender instead of many.

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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. If you need help educating yourself on your debt consolidation options, you can start with the section titled “What is Debt Consolidation?” If you already know debt consolidation is the right path for you, here is a preview of the best debt consolidation loans revealed by my research:

Next, I’ll dive into more detail on each company. I’ll later describe my methodology for choosing these three companies as the best debt consolidation loans online. 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.

LendingClub is the nation’s largest peer-to-peer lender. Personal loans via LendingClub range from $1,000 to $40,000 at APRs from 5.99% to 35.89%* APR. Best APR is available to borrowers with excellent credit. The website is clean and transparent, with easy-to-find rates and fees, a clear description of the lending process, and a streamlined rate-quote tool.

LendingClub also requires a minimum credit score of 600 and has slightly stricter criteria for making a loan than other leading debt consolidation loan companies, including a stricter debt-to-income ratio and more reliance on credit history. LendingClub also charges a $7 check-processing fee every time you pay with a check.

  • Available in all states except Iowa and West Virginia
  • Funds loans up to $40,000
  • Competitive interest rates
  • Thorough, transparent website with easy-to-find rates and fees
  • BBB accredited with A+ rating
  • Will only allow 36- or 60-month terms
  • You might have to wait a week or more for your loan to be funded
  • Slightly pickier about borrowers
  • Charges a check-processing fee

PersonalLoans.com can help connect you with lenders in all 50 states. APRs range from 5.99% to 35.99% for loans up to $35,000. Several types of loans are on offer (though eligibility will vary by state): peer-to-peer loans, bank loans, and installment loans.

The site is informative and well designed, but this is only a referral site. That makes it difficult to know in advance what kind of APR you will be offered, what fees might come attached to your loan, and other crucial information that can be easier to discern with a direct lender.

  • Available in 50 states
  • Funds loans up to $35,000
  • Competitive interest rates
  • Well designed, informative website
  • Website is only a referral site
  • You might have to wait to learn full details about APR or fees attached to loan

Avant focuses on offering access to loans to borrowers with slightly lower credit scores than Lending Club. Avant is not a peer-to-peer lender and offers access to loans through its lending platform. That can be an advantage for borrowers who need cash more quickly because through the Avant platform, you could have your funds as soon as the next business day.

I received answers to my questions through a helpful online chat service, which was a nice bonus with Avant. However, you’re subject to higher APRs with Avant, which means this probably won’t be the best choice for those with good or excellent credit.

  • Available in 46 states and the District of Columbia
  • Borrow from $2,000 to $35,000*
  • Funds available in as little as the next business day
  • BBB accredited with A+ rating
  • Higher advertised APRs (9.95% to 35.99%)
  • $25 late payment fee

* The actual loan amount, term, and APR amount of loan that a customer qualifies for may vary based on credit determination and state law. Minimum loan amounts vary by state.

Avant branded credit products are issued by WebBank, member FDIC.

Upstart, which makes loans from $1,000 to $50,000, focuses on younger buyers who might be having trouble getting loans due to a shorter credit history. This new peer-to-peer lender will consider factors such as your alma mater, job history, major, and even your grades and test scores when deciding on APRs, which range from 7.37% to 29.99%. Upstart also only makes three-year or five-year loans, so if you want a longer or shorter term, you’re out of luck.

OneMain is a solid option for borrowers who may not have the best credit. Though you can apply online, the company has nearly 1,600 branches around the country for those who want to do business in person. Secured loans may be an option at OneMain, too.

The company has an A+ rating and is accredited with the BBB. OneMain is only an option in 44 states, however. The company’s website also offers some nice educational information about loans.

LightStream, a division of SunTrust Bank, offers debt-consolidation loans from $5,000 to $100,000 at extremely low APRs: 5.49% – 14.69% APR with AutoPay*. It also offers flexible terms from 24 to 84 months, and there are no fees. The catch? You’ll need top-notch credit, significant income, and substantial assets to qualify. That’s a tall order for most people who are considering debt consolidation, so this is definitely a niche service.

* Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. If your application is approved, your credit profile will determine whether your loan will be unsecured or secured. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Rates as of 1/17/18.

Prosper, though it requires a minimum credit score of 640, offers unsecured personal loans from $2,000 to $35,000 and competitive APRs from 5.99% to 35.99%.

Prosper takes into account a range of factors other than your credit history when determining your APR. Its website is easy to navigate, with clearly disclosed rates and fees. Prosper does charge an origination fee of 1% to 5% of your loan, and there are fees for late payments ($15 or 5% of the outstanding amount) and unsuccessful payments ($15 per occurrence).

How I Picked the Best Debt Consolidation Loans

The best debt consolidation loans have a balance of low fees, competitive interest rates, and flexible terms. Here is a full list of the criteria I considered while making my picks:

  • Wide range of loan amounts: Some online lenders will cap their loans at relatively low amounts such as $5,000 or $10,000, shutting out potential borrowers. The best lenders will approve loans for at least $25,000 or $30,000.
  • Wide range of loan terms: Some online lenders are somewhat rigid on the length of loan terms they’ll offer. The best lenders are more flexible, allowing for shorter terms (such as 12 months) and longer terms (such as 72 months or more).
  • Competitive interest rates: Though the interest rate you can land will vary depending on your credit, the best lenders keep their range of possible rates competitive.
  • Reasonable fees: If the lender charges fees other than the loan’s interest rate (these include origination fees, late payment fees, and unsuccessful-payment fees), they are reasonable compared to those charged by competitors.
  • Transparency: Instead of immediately requiring you to input your personal information, the best lenders immediately tell you how much you can borrow, what kind of rate you might qualify for, potential terms, and fees.
  • Wider geographical reach: States regulate online lending differently, and it’s common for lenders to do business only in certain states. The best lenders have a wider reach than their competitors.
  • Credibility and reviews: I looked up online reviews and Better Business Bureau pages for each lender. I also considered how long the company has been in business.

After considering all of these criteria, LendingClub, Avant, and PersonalLoans.com rose to the top of my list. But before you take out a debt-consolidation loan with these or any other lenders, read on to make sure you know as much as possible about debt consolidation. I’ll cover the basics of debt consolidation, types of loans, how it differs from other debt-relief programs, risks, alternatives, and how to avoid scams.

Debt consolidation is true to its name. When you consolidate your debts, you’re taking out a new, bigger loan to pay off a bunch of your existing debts. Instead of paying several different creditors, you’ll be paying a single bill for the new loan. Your monthly payment will likely be lower with the new single loan than the combined payments of your previous debts. Unlike debt settlement, you do not actually reduce the principal amount you owe — you will still be paying the full amount.

Debt consolidation is not without risks. Experts warn against consolidation unless you’re truly struggling to make minimum payments on your debts each month and are ready to turn over a new leaf with your spending habits. Here are the pros and cons of debt consolidation:

  • Short-term relief: A single loan with a lower interest rate, spread out over a longer term, can drastically reduce the amount you pay each month.
  • It’s easier to stay organized: It can be hard to keep track of several bills and monthly due dates, leading to more late or missed payments, but it’s easy to remember to pay just one bill.
  • No damage to your credit: Debt consolidation keeps your credit intact since you’re still paying off all of what you owe. This isn’t always the case with debt settlement, debt management plans, and bankruptcy.
  • Long-term pain: Your lower monthly payment is usually the result of a longer payment term, not just a lower interest rate. In other words, instead of paying a lot for a short period, you’ll be paying a little for a long period. And you might be paying much more in interest over the long run, once it’s all said and done.
  • Big risks, depending on your new loan: If you use a secured loan to consolidate your debts, the collateral associated with that loan (for instance, your house) will be at risk if you can’t make your new payments. Falling behind on an unsecured loan isn’t as dire, but it could still trash your credit score.
  • You’re fighting debt with debt: While debt consolidation can work for the fiscally disciplined, bad habits might be the reason you’re considering consolidation in the first place. If you don’t change your habits, you may end up much deeper in debt than you were before you consolidated.

What Kinds of Debt Consolidation Loans Are There?

Secured loans are tied to some sort of collateral — a valuable asset that the lender can take in the event you no longer pay your bills. Common collateral includes your house or car. It’s easier to get a secured loan since there is less risk to the lender. For the same reason, it’s also usually easier to get a larger amount at a lower interest rate. The interest may also be tax-deductible.

Of course, while it’s easier for you to land this kind of loan, you could also lose your assets if you default. You may also be paying down this kind of loan for much longer. Home equity loans are among the most common kind of secured debt-consolidation loans.

In contrast, an unsecured loan isn’t tied to collateral. Because of that, it’s less risky to you — by defaulting, you’re mainly risking credit damage instead of your house, car, or other assets. Unsecured loans also usually take less time to pay down.

However, getting an unsecured loan is tougher, especially if your credit is tarnished. Because the lender takes on more risk with unsecured loans, you’ll probably be offered a higher interest rate and a smaller amount, and there are no tax benefits. Personal loans, credit-card balance transfers, and loans offered solely for the purpose of debt consolidation are among your options here.

Where Do I Get a Debt Consolidation Loan?

If you need a secured loan to consolidate your debt, you’ll likely be limited to a brick-and-mortar lender such as a bank or credit union. If you’re considering an unsecured loan to consolidate your debt, you’ll have more options.

It’s hard to beat the convenience of online lenders, several of whom I reviewed above. You can also apply for a personal loan at most local banks and credit unions — while the lending process can move slowly, you can get more personal service this way.

Finally, if you can roll your debt onto a credit card with a very low introductory rate, this is a viable option, too. However, you’ll need to be disciplined enough to pay it off before your introductory rate expires and leaves you with the (much, much) higher ongoing interest rate.

You may also be wondering about debt-consolidation companies that will make you a loan to pay off your existing debts. It can be very hard to find a company that isn’t actually pushing debt management or settlement plans, both of which I describe below. Above all else, the best debt consolidation companies are transparent about their methods. For more about avoiding scams, keep reading.

Alternatives to Debt Consolidation

If debt consolidation doesn’t seem quite right for your situation, there are several other debt-relief methods. Of course, all of these strategies have their own pros and cons, and only you can decide whether they are better or worse for your unique situation.

Counselors working on behalf of reputable nonprofit credit-counseling agencies can help you create a plan to better manage your money and budget for debt payments. Of course, this strategy doesn’t actually reduce your debt, but it also has fewer risks than consolidation or settlement and debt management, discussed below.

As I mentioned above, debt consolidation doesn’t reduce your loan principals. Debt settlement does. A debt settlement company negotiates with creditors on your behalf.

When you sign up, you’ll likely begin contributing to a special account set up by your debt settlement company. Once it reaches a certain level, the company will reach out to your creditors in hopes that they’ll accept a lump sum that’s less than what you actually owe. After that sum is paid, you’re no longer indebted to the creditor.

How long it takes largely depends on how quickly you can save enough to begin negotiations, but most companies allow two to four years for the process. Settlement has big risks, though, including big fees, damage to your credit score, and tax liability. Take a look at my separate post on debt settlement companies for more details.

In debt management, a company negotiates with your creditors to lower your interest rates and monthly bills, but the principal remains the same. You’ll pay the debt management company, and it distributes the money to your creditors.

Lower rates can save you a lot of money, and you’ll have an easier time staying organized. But your credit can take a hit from participating in these programs if the company isn’t on the ball with payments, and potential lenders might shy away if they know you’re in a debt management program. You’ll also have to close all of your accounts and agree not to open new ones.

Finally, it can also be tricky to separate legitimately helpful programs from scams and shady fly-by-night companies. Take a look at my separate post on debt management companies for more details.

For most people, bankruptcy is the nuclear option. The negative implications of bankruptcy can certainly be severe, including a massive impact on your credit.

If you’re able to consolidate your debt with a loan that you can comfortably pay off and can avoid acquiring new debt during the process, debt consolidation is a much less drastic option than bankruptcy. That’s because your credit won’t suffer any more of a hit with consolidation when it’s done correctly.

Beware of bankruptcy lawyers who tell you bankruptcy is better than debt consolidation. They have a vested interest in clients using their services, and many also confuse debt consolidation with debt management or settlement, discussed above. These two services can hurt your credit, making bankruptcy a more viable option if you’re considering them.

Can I consolidate my student loan debt?

Absolutely! You have two options when it comes to consolidating student loan debt:

  • Federal consolidation loans
  • Private consolidation loans

Both options allow borrowers to combine their existing loans into a single loan with a fixed interest rate. But aside from that, there are a few differences:

Find the Best Debt Consolidation Company

Companies that do debt consolidation have a variety of methods they use and it’s vital that consumers understand the differences in each plan.

Debt management, debt settlement, debt relief and debt negotiation are all bona fide plans for consolidating debt, but there are differences in the approach used to get a result. Each one has a distinguishing feature that makes it an appropriate – or inappropriate – solution for your problem.

It’s up to consumers to sort through the choices and determine which company meets the goal of eliminating debt. Some companies maintain in-house debt counseling to assist consumers. Others refer clients to a network of companies, credit counselors and debt attorneys that offer solutions.

Debt.org compiled information on six of the top debt consolidation companies in the United States and reviewed them based on services, fees, and reviews from the Better Business Bureau. The ratings, plus tips on how to choose a debt consolidation company, are below. The star rating below is based on Debt.org’s review of each organization’s fees, transparency, Better Business Bureau rating and complaint history.

(4.7 / 5)

Debt Management Plan

Free Budget Counseling

Monthly fee up to $55 based on a percentage of your payment. Setup fee up to $75 varies by state.

InCharge is a 501 (c)(3) nonprofit that specializes in credit counseling and debt management programs. Counselors are trained and certified by the National Foundation for Credit Counseling. Services are available online, via phone and in-person in Orlando, Florida.

Debt management program requires commitment and patience. Won’t reduce amount owed, but can help reduce interest rate paid on debt. Excellent at helping develop a budget. The company is well-known for efforts to improve consumer’s financial literacy.

(4.4 / 5)

Origination fee 0.5%-4.95%. Late fee is 5% of monthly payment or $15. Failed payment is $15.

5.99% to 35%, depending on qualifying factors.

Prosper is an online lending service. Borrowers file financial information and are matched with investors who fund the loans. Prosper services the loans on behalf of both borrower and lender. Services are provided online and over the phone.

Competitive interest rates and quick approval process make this an appealing choice. Fee structure may be an obstacle. Process eventually will include hard inquiry on credit score, which must be 640 or better. That could eliminate some borrowers.

(4.2 / 5)

Secured & Unsecured Personal Loans

Origination fee for secured loan is $75. Fee for late payment or insufficient funds is $39.

Wells Fargo & Company is the third largest bank by assets in the U.S. and the largest by market capitalization. It offers secured and unsecured personal loans for debt consolidation. Services are available nationwide at Wells Fargo’s 6,000 retail banks, and also via telephone.

A lot of options for debt consolidation loans, but rules associated with each option can be confusing. Good credit score and equity in home or car make a big difference in interest rate charged for loans. It also helps if you do your banking with them.

(4.0 / 5)

Origination fee 1%-6%. Late fee is 5% of monthly payment or $15. Check processing fee is $7.

5.99%35%, depending on qualifying factors.

Lending Club has become a leader in online lending. Borrowers fill out an application, then company assigns credit rating and interest rates. Investors fund the loan. Lending Club services are available online, through their website.

Company offers quick response on loan requests, but rates expire in 7 days, which means you better be ready with a decision. Credit score of 660 needed. No telephone number on website a problem for customers wanting service.

(3.8 / 5)

Origination fee is 0.95% – 3.75%. Late fee is $25. Fee for insufficient funds is $15.

9.95%-36% for loans

Avant opened in 2012 and claims 450,000 customers and more than $1 billion in loans in its first four years. Application process is quick and easy to understand. You can apply for a loan by visiting the Avant website. In-person service is not available.

Good news is that borrowers with less than stellar credit score (under 700) could find help, but plenty of complaints that loan interest rates are too high.

(3.5 / 5)

18%-25% of amount settled

24-36 months for settlement

National Debt Relief specializes in debt negotiation and debt settlement. Their method of debt consolidation is to take all past due bills and attempt to reach a settlement with each creditor. Services are available over the phone only.

Debt settlement does severe, long-term damage to your credit score, a fact the company admits on its website. Some creditors won’t deal with debt settlement companies, but if you’re not worried about your credit score, this might be an appropriate option.

Never underestimate the value of customer service in choosing the best debt consolidation company. Talking about debt problems is difficult. The ability to speak freely with a credit counselor can make you more comfortable taking suggestions to help your cause.

A good debt-relief company will provide you with clear answers, and have a reputation for integrity and success. Counselors should be trained and certified by a state or national organization. They should work to make your bills more manageable.

It helps to know how credit counselors are compensated. If they receive bonuses for selling additional services, that should be a red flag. A company should make you feel like it has your best interests at heart at all times.

Most debt relief companies can help you settle your unsecured debts, including credit card bills, unsecured personal loans, payday loans, medical and hospital bills, department store credit cards, accounts in collections and certain utility bills. Some companies will require that you have a minimum amount of unsecured debt, usually $7,500 or more.

Under most circumstances, debt consolidation companies can’t help with mortgages, secured personal loans, or car loans.

An important part of their customer service is to educate you, not just on how to pay off the existing debt, but also to understand the root cause of your debt and how to avoid that in the future.

Many consumers, especially those seeking financial help, have been exploited by misleading, or blatantly false promises.

It’s a lot easier to deal with a debt consolidation company that is transparent about its practices, discloses all terms and conditions involved in doing business and freely provides information to verify whatever claims or guarantees it makes to customers.

Being transparent about business practices helps build trust between the consumer and business.

Signs of Transparency Among Debt Consolidation Companies

The easiest place to gauge a company’s transparency is likely to be its website.

There is standard information that should be available on every debt consolidation company’s website that tells you whether it has anything to hide. Some of the basics include how long the company has been in business, a page that lists its top executives, the company’s physical address, hours of operation and phone number.

If that information is easily available, you’re off to a good start. Other indications of transparency include:
  • Choice of Programs – Do they offer loans or is the focus on credit counseling and programs like debt management plans or debt settlement?
  • Cost and Fees – Do they list all the fees (origination fee, monthly fee, late payment fee) associated with loans or programs? If they offer debt consolidation loans, what are the interest rates?
  • Program Time Frame – How long should it take to pay off the debt? If you receive a loan, is there a pre-payment penalty?
  • Eligibility – Is there a minimum or maximum amount of debt to qualify? Is there a minimum credit score required? Is this only for personal debts or does it include small business debts?
  • Customer Service – Will you get a personal counselor assigned to you? Can you interact with them online or with a smartphone? Is there a page for objective reviews of the company’s performance?

When a company has nothing to hide, it should have no problem putting all that information up on its site to help consumers understand what is involved in finding solutions to their credit problems.

Company Longevity and Trustworthiness

In a marketplace where change occurs seemingly overnight, does longevity and trustworthiness really matter anymore? When it comes to your money, absolutely!

If you are struggling to keep up with credit card debt or need help with bill consolidation, finding a company that has a track record of success, helps build confidence and trust.

Companies that have been around 10–15 years develop a level of trust with customers. Their beliefs, values and performance remain consistent. Providing customers with solutions is why they are still in business.

Most of the companies involved in debt consolidation are accredited by the Better Business Bureau, which normally would be considered a positive, but the fact that nearly all of them have an A-plus rating from BBB waters down the rating.

The BBB does, however, list the number of complaints companies receive and how many of those complaints were resolved, which could be useful in making a final decision.

FTC Rules & Regulations for Debt Consolidation

The Federal Trade Commission (FTC) has enacted a strict set of rules governing for-profit companies operating in the debt-relief business. It’s called the Telemarketing Sales Rule (TSR) and most of it is meant to protect consumers from unscrupulous companies that offer debt consolidation.

While there are many aspects to the TSR, the most prominent provisions are:
  • Don’t Pay Fees Up Front – Companies can’t collect a fee for their service until they have settled or resolved the customer’s debts. The customer and creditor must agree to the settlement in writing and the customer must make at least one payment to the creditor before the debt-relief company can collect a fee. If the customer has multiple debts, the company may collect a fee for each debt settled, but no fees can be collected in advance of a settlement.
  • Know What You’re Getting in Advance – A debt-relief company should tell customers how long it will take to get results; how much it will cost for the service; and what the negative aspects of using debt relief service will be.
  • Misrepresenting Services – Companies are prohibited from making false or unsubstantiated claims about their services, including how much it costs and what percentage of customers have gotten results you seek.

Avoiding Debt Consolidation Scams

The debt-relief business is no stranger to scams. There are warning signs that should alert consumers to be careful whom they trust to solve their financial problems, but some companies still succeed.

Some of the things to watch for when choosing a company include:
  • Claiming non-profit status when they’re actually a for-profit business
  • Offering guarantees to settle your debt for pennies on the dollar
  • Seeking fees for services before reaching a written agreement with your creditors
  • Using aggressive sales pitches, asking you to act quickly on a decision that requires research and time before deciding
  • Promising a “quick fix” solution. All debt relief programs take time, most of them between three and five years. Be suspicious of promises that it can happen faster.

Payday loans seem like a handy go-to solution for people in emergency situations, but they often are the start of a downhill slide that would be better treated with debt consolidation.

A study by the Consumer Financial Protection Bureau (CFPB) shows that 80% of payday loans get rolled over within two weeks, meaning the principle and interest — usually 300% APR or higher — haven’t been paid. The amount owed grows and the consumer falls deeper into debt. In fact, CFPB research shows that 50% of payday loans get rolled over as many as 10 times.

A better solution would be to contact a payday debt consolidation company and roll the various loans into one payment. Payday loan relief companies focus on people in severe financial trouble. The interest rate they charge is considerable, but it is nowhere near the average 391% APR attached to payday loans.

Payday loan debt consolidation companies also might help you get into a debt management program where you pay off the amount over an extended period of time.

Another form of payday loan consolidation is using a credit card to get a cash advance that would be used to retire the payday loan.

One overlooked part of choosing a debt consolidation company is the educational aspect to it. Will the customer learn anything from the experience that can be useful in avoiding future problems?

Educating and counseling consumers is almost exclusively the province of the non-profit organizations involved in debt consolidation. Non-profits are required by the Internal Revenue Service to provide an educational aspect to their service in order to retain their tax-exempt status as 501(c)(3) organizations.

Non-profits deal with this requirement by offering credit counseling, almost always at no cost. Counselors review a consumer’s finances, focusing mostly on the circumstances that caused financial problems and how managing budgets solve it.

They review the information and should offer an impartial recommendation that could involve a debt management plan, debt settlement, or even bankruptcy if the situation calls for it.

If you choose this route, be sure the company’s counselors are trained and certified. Contact the National Federation for Credit Counseling (NFCC) if you have questions about certification.

Which Debt Consolidation Company Is Best?

Choosing a debt consolidation company involves research and understanding of your situation.

The best solution happens when you know what resources are available to apply to the problem, the frame you have to solve it and then deciding which debt consolidation program works within those parameters.

For example, if you have enough money, but just need more time to pay off a debt, a debt management program might be a better choice than debt settlement. However, if you’re trying to eliminate payday loans, a company that specializes in debt settlement might be your best choice.

How will you know the difference? That is where research comes in.

You should know the nuances and definitions for the various debt consolidation programs so that you don’t confuse one with another. It’s important to find a company that offers the type of debt consolidation program you want, makes you feel comfortable dealing with their staff and their requirements, and one that educates you while you’re in the program so you never have to return.

10 Best Debt Consolidation Firms January 2016

Many people find that they can no longer afford to pay off their existing debt. There may have been a job lay-off or their company may have closed. With the prospects of bankruptcy looming, they may turn to a debt settlement agency in order to make arrangements to repay any loans or credit cards they have. Finding the best debt settlement agency for your needs, is easy. You can check out several of them on the internet. There are lists of the 10 best debt settlement agency's where each of them are described in detail of what they can provide. Ranking order is based on a wide range of qualitative and quantitative statistics, including the payment of variable monthly listing fees to be in our directory. Learn more about our ranking process here.

National Debt Relief

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National Debt Relief

#1 of 10 Best Debt Consolidation Companies of 2016 - In order to battle back against debt, one must know the tricks of the trade to get it crushed and eliminated from their life. This means that they should look into National Debt Relief as a resource to use to help get those debts consolidated and easier to manage. Consolidation is a great first step for the person who is feeling overwhelmed by their debt problems and just want a way to get out from under those problems. It is something that many use as a beginning resource to start moving towards a better financial life with less stress and more money.

National Debt Relief

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Discover

#2 of 10 Best Debt Consolidation Firms of 2016 - Most people think of Discover as a credit card company, and it is, but it also offers personal loans and other types of loans to help you consolidate debt. If you are carrying debt on a credit card, you are likely paying interest rates of close to 20 percent. You can get a personal loan or debt consolidation loan from Discover and get a lower rate and lower monthly payments. Discover offers loans for up to $30,000 with terms of up to seven years. If you believe you could benefit from debt consolidation, check out your options with Discover.

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HSBC

#3 of 10 Best Debt Consolidation Companies of 2016 - HSBC is a corporation you can trust to help you settle your debts and consolidate your loans. They can surely help you. Available globally, they handle commercial banking, global private banking, retail banking and wealth management. In addition to having monetary expertise, HSBC has a lot of values. They stick to doing what they think is right, hold themselves accountable and use common sense for the actions they take. Also, they care about you and will treat you with respect. You can count on them to help you succeed in attaining your financial goals, as they learn from their mistakes.

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Prosper

#4 of 10 Best Debt Relief Agencies of 2016 - Being able to consolidate debt can get your a lower interest rate on your debt and more manageable monthly payments. It also can keep you out of bankruptcy. To get a good deal on debt consolidation, you need to work with a top debt consolidation firm like Prosper. At Prosper, the best-qualified borrowers can get rates as low as 5.99 percent on a debt consolidation loan. There are no hidden fees or teaser rates that go up later, and the online application process is fast and easy today. Check out the loan consolidation options Prosper offers by visiting the website today.

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Lending Club

#5 of 10 Best Debt Consolidation Firms of 2016 - Lending Club is a debt consolidation firm with its home office located in San Francisco, California. The company is the largest online credit marketplace worldwide. They issue personal loans, business loans and financing for certain medical procedures. Borrowers can apply for low-interest rate loans via the Lending Club website. The company can offer low-interest rate loans because operating online reduces business expenses. Lending Club loans are issued by a bank. Borrowers receive the same protections, fair lending and disclosure notices as with any other type of bank loan.

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TD Bank

#6 of 10 Best Debt Consolidation Agencies of 2016 - TD Bank is one of the best debt consolidation firms in the United States and Canada. With more than 1,300 branches on the east coast of the U.S., the financial institution provides services to thousands of consumers and businesses needing banking and financial services. Their financial loan specialists help homeowners with finding solutions to pay off debts by consolidating current credit obligations. Consolidate personal loan, auto loan, home equity, student loan and/or credit cards. Debt consolidation services offered by TD Bank are Home Equity Lines of Credit and Home Equity Loans. Homeowners must have complete ownership of homes to qualify for both services.

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Wells Fargo

#7 of 10 Top Debt Consolidation Firms of 2016 - Wells Fargo is a splendid financial planning company. They teach their clients how to plan for retirement and invest. As you undergo the training process, you will have an easier time reaching your financial goals of buying a house, retiring when you are ready, etc. Wells Fargo is devoted to helping you out and making your banking experience pleasant. You will have an easy time conducting your banking online and it will only take you a few minutes to open a savings account. Also, you will have a shot at becoming rich once you get the hang of investing.

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US Bank

#8 of 10 Leading Debt Consolidation Agencies of 2016 - When you are looking for ways to consolidate your debt and get a lower interest rate and payments, you may not think of a large bank as a good option. But working with US Bank can offer you a range of options. If you own your own home and have equity in it, you can consolidate your debt with a home equity loan or line of credit to get a very low interest rate. If you don't have collateral but have good credit, you can get a personal loan. Check out US Bank today to find out about debt consolidation options.

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Lending Tree

#9 of 10 Leading Debt Relief Agencies of 2016 - Most people think of Lending Tree as a website where people go to get mortgages, but it's actually a top debt consolidation option. If you have high interest credit card debt, there are a couple of ways you can use Lending Tree to lower it. If you own a home and have equity, you can get low-rate home equity loan or line of credit to pay off your debt. Even if you don't own a home, you can get a personal loan to consolidate debt. To find out what debt consolidation options are available to you, check out Lending Tree today.

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Trident Debt Solutions

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Trident Debt Solutions

#10 of 10 Top Debt Consolidation Businesses of 2016 - Trident Debt Solutions will help solve your debt woes. They can wipe out your debt in less than two years. On top of that, they will charge you half the price you would likely pay elsewhere. Your monthly payments will be low and you will not be charged a fee until you have attained success. Trident Debt Solutions guarantees that you will be successful in addition to providing the lowest prices; therefore, you have little to lose from utilizing their services. They specialize in credit card debt. Their founder has practiced bankruptcy law for more than 20 years.

Trident Debt Solutions

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American Debt Enders

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American Debt Enders

In today's society, a lot of Americans have found themselves in some sort of debt at one point in their life. Some people have more debt than other people, but according to all of their past clients' reviews, American Debt Enders are excellent at helping to consolidate debt. They are even now considered to be the best debt consolidation firm, in the entire industry. A few of the programs and services that American Debt Enders provide for their clients are debt management programs, debt settlement & debt restructures, consolidating federal student loan debt, payday loan debt, credit restoration, and even free credit counseling.

American Debt Enders

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Premier Debt Help

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Premier Debt Help

Premier Debt Help helps clients resolve serious debt issues. Premier Debt Help works with clients that have outstanding credit card bills, medical bills, and unsecured loans. This firm also helps clients overcome business debts, collections, and repossession. Premier Debt Help stands behind their work. They are one of the few debt settlement companies that offer a 100% money-back guarantee. Premier Debt Help offers everyone a free consultation. Clients will receive support from a hard-working staff after they enter into an agreement with Premier Debt Help. The staff will aim at settling the client's debt within a short period of time.

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First Choice Debt Relief

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First Choice Debt Relief

Debts are one of the most frustrating things that anyone has to deal with. There are companies like First Choice Debt Relief which understand this and are there to help. They want to provide people with the ability to get out of the debt that they have personally acquired. This company looks to help by getting customers to consolidate their debt and making smaller payments as a result. If the person who owes money consolidates it into one simple payment, they are doing themselves a huge favor and saving a lot of money as a result of this as well.

First Choice Debt Relief

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Debt Wave

If you are looking for a reputable service to help you change your financial picture, Debt Wave, an award winning organization is it. Debt Wave is a national nonprofit that provides a variety of services to help clients achieve their overall goal of freedom from consumer debt. Debt Wave aims to help clients increase their financial literacy, by providing each client with personal guidance and setting realistic goals. As a debt consolidation and settlement firm, Debt Wave works hard to attain the best terms with lending institutions resulting in substantial decreased interest rates and/or payment terms for its clients. Debt Wave is here to provide a wide range of services and has made it possible for thousands of people to achieve their goal of financial freedom from their creditors.

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Golden Financial Services

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Golden Financial Services

Credit cards are a great convenience -- until you rack up large balances that you have trouble paying off. Credit cards carry high interest rates, which means those balances keep growing. The best way to take care of that problem is to consolidate your debt. Using a top debt consolidation firm such as Golden Financial Services can help you get better interest rates and lower payments on your debt, which can get you more manageable monthly payments and make it easier to pay off the debt. To find out about your debt consolidation options, check out Golden Financial Services today.

Finding the Best Debt Consolidation Companies

November 30th, 2016

If you are burdened with debt whether it’s credit card debt, mortgage debt, or student loan debt, you might have considered using a debt consolidation company to help you get in charge of your finances, lower your monthly payment, and get back on track financially.

There are many misconceptions about debt consolidation companies. Below are some of the most commonly asked questions about them along with some answers.

What Are Debt Consolidation Companies?

Debt consolidation companies are companies that offer to pay off your existing debt and roll it into one new loan, making your monthly payments easier to manage. Debt consolidation companies do not eliminate your debt entirely. Some, if they are called a Debt Settlement Company, will negotiate with creditors on your behalf. These types of companies often charge fees for negotiating on your behalf, and it’s important to do your research so you know the company you are working with is legitimate. It’s also important to decide what you want to do with your debt, whether you want to settle because you are having trouble paying your loans or whether you can pay your debt but you just need monthly payments that are more manageable.

When Should You Use a Debt Consolidation Company?

The Federal Trade Commission recommends that when you have debt, the first step should be self-help. This means that before you contact a debt consolidation company, you should take the time to assess your finances, create a budget, cut your spending, and find ways to improve your income.

If, after a concerted effort, you still feel like you need the help of a debt consolidation company, you should seek one out that has high reviews.

How Do You Find a Trustworthy Debt Consolidation Company?

There are many ways to find a trustworthy debt consolidation company. Although there are many horror stories about people working with debt settlement companies in particular, with enough research, you can find companies that have helped millions of people with positive reviews.

Watch out for companies that give empty promises about settling large amounts of debt or doing it quickly. The most trustworthy companies should disclose that there are no guarantees of results. The most trustworthy companies will also disclose their fees upfront, so you know exactly what you have to pay them to take the time to consolidate your debt or negotiate with creditors on your behalf.

You can also check a company’s rating with the Better Business Bureau or search reviews online to ensure they have a history of positive customer reviews. Finding a debt consolidation company should not be a quick process or one that you choose lightly. After all, they have the fate of your financial future in their hands, and you want to make sure to make as educated of a decision as possible when choosing a company to work with.

Again, you should take the time to work through a negative financial situation on your own first, but if you find that you are getting behind on payments or incurring late fees, finding a debt consolidation company to help lower your payments would be a wise next step as long as you carefully choose the one who will meet your needs and legitimately help you.

Best Debt Consolidation Companies

Best Debt Consolidation Companies

Searching For The Best Debt Consolidation Companies?

With several different debt relief strategies available to consumers, it is very confusing to figure out exactly how to best resolve a specific financial situation. Often times, consumers are not even sure what they should be searching for. As a consequence they end up Googling generic search terms like Debt Consolidation or Debt Management. These terms can actually be used to describe both Consumer Credit Counseling and Debt Settlement, which are two very different services.

Here at Pacific Debt we receive a lot of inquiries from consumers who found us by typing Best Debt Consolidation Companies into Google. Even though we are a Debt Settlement Company, we do help consumers consolidate their debts into one smaller monthly payment. The payment is placed into an escrow savings account that can eventually be used to negotiate and settle an outstanding debt for less than the full balance due on the loan or credit card.

If you found us but were actually looking for information on Debt Consolidation Loans please see Best Debt Consolidation Loans. If you are struggling to make your monthly payments and your credit is less than perfect, you will very likely find it difficult to secure a consolidation loan to pay off your credit cards.

Many of the consumers who have found us while searching for the best debt consolidation companies, where actually looking for Consumer Credit Counseling programs. However after comparing the payments of the Credit Counseling Programs to our Debt Settlement Program, most of them opted to work with us. In many situations, debt settlement is simply a superior strategy to credit counseling.

Whether or not our debt settlement strategy is right for you will depend on your specific situation. In general though, you will be out of debt several years sooner with a much smaller monthly payment as compared to a Consumer Credit Counseling approach.

Making a decision to consolidate your debt with either a credit counseling or a debt settlement program can be tough. It is important to do the research and explore both options before making a final decision. For a side by side comparison, contact the Professionals at Pacific Debt and take the first step down the path to debt freedom.

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