In the modern world, debt is almost inevitable. Whether it is student loans, credit cards, car payments, mortgages, or medical bills, there’s a high chance of incurring debt. Maintaining multiple debts can be overwhelming and confusing, hence the need for debt consolidation programs. These programs merge all your debts into one, making it easier to keep track of your debts and focusing on repaying them. But with the myriad of debt consolidation programs available, choosing the best one that suits your needs may seem daunting. To help you with this, we have analyzed the best debt consolidation programs to opt for.
1. National Debt Relief
National Debt Relief is one of the highly-reputed debt consolidation programs in the market. With an A+ rating from the Better Business Bureau, its program is specifically designed to help people who are struggling with massive outstanding debts. National Debt Relief helps negotiate with your creditors on your behalf to lower your debt amounts. This program also helps you manage your finances better by providing a free budget planner. The only possible drawback of National Debt Relief is that it charges 15-25% of the total amount of debt you enroll.
If your main source of debt is credit card debt, then Payoff could be your go-to program. Payoff provides personal loans intended specifically for credit card debt consolidation. This program is one of the best because of its transparency in pricing with no hidden fees, flexible loan terms ranging from two to five years, and competitive interest rates. What sets Payoff apart is its offering of free FICO score updates, job loss support, and a member experience team to support you. However, Payoff is not accessible in all states and requires a higher minimum credit score than some other lenders.
3. Freedom Debt Relief
Founded in 2002, Freedom Debt Relief is one of the most experienced and proven debt consolidation programs. Its debt negotiation process can help reduce your debt by a large amount. Freedom Debt Relief offers a free consultation and debt evaluation. The entire process can take between 24 to 48 months and they charge no upfront fees. The company’s charges range between 15 to 25% of the debt you enroll.
4. Discover Personal Loans
Discover personal loans are ideal for those with good credit and need a large sum for debt consolidation. It offers flexible payment terms and competitive fixed rates. This program operates in the same way as a traditional loan, where you take out a single loan to pay off multiple debts and then pay the loan off over a specific period at a set interest rate. They offer loan amounts between $2,500 and $35,000. They have no origination fees but it does impose a $39 penalty for late payments.
SoFi is a unique debt consolidation program offering more than just personal loans. SoFi’s program aims to help individuals gain holistic financial wellness by providing services like investment opportunities and career counseling. It offers competitive interest rates, ranging from 5.99% to 22.56% APR (with AutoPay). SoFi provides personal loans ranging from $5,000 up to $100,000 without origination fees. However, SoFi requires a relatively high credit score and it may take longer to receive the loan.
Before choosing a debt consolidation program, it’s essential to evaluate your financial situation and weigh the pros and cons of each service. Some services would suit those with massive debts, while others would be ideal for those with a smaller amount of debt spread across multiple credit cards. Stay smart with your choices for a financially secure future.