Poor credit debt consolidating loans
You need to factor in origination fees, prepayment penalties, late fees and other charges.
If you’re one of them, it might be time to look at a debt consolidation loan.A low score doesn’t mean lending institutions will bar you at the door.The most convenient place to start looking for a loan is your local bank, though it will pay to shop around.If you have $10,000 in credit card debt and are putting $250 a month toward that bill, it would take 61 months to retire the loan and you’d pay $5,212 in interest for a total repayment of $15,212!If you got a debt consolidation loan at 7% interest and paid $250 a month, it would take 46 months and you’d pay $1,420 in interest or $11,420 total.Credit unions often offer better rates, as do online lenders like So Fi, Light Stream and Marcus by Goldman Sachs.
If you shop for a low interest debt consolidation loan on the internet, beware of scams.
Reputable debt consolidation companies will not require an upfront payment or guarantee loan approval.
As to what kind of debt you can consolidate, the answer is pretty much anything as long as you qualify for the loan.
Bring proper identification, proof of income and your most recent tax returns.
Debt consolidation loans typically range from $1,000 to $50,000.
The lending institution will make sure you have the sufficient income to meet your payment obligation.