If you are ready to take the plunge and take out a debt consolidation loan to pay off high interest debt and get on the road to better financial security, you should know that you have a couple of options for finding a lender.
There are a number of traditional lenders like banks that offer debt consolidation lending services to their customers. But they are far from the only option you have for taking out one of these useful loans. You can also utilize the service of a crowdfunding option to help you get your loan. And no, this is not a GoFundMe.com fundraising effort. There are several peer to peer lending sites that allow you to get the debt consolidation loan you need.
Here’s what you need to know in order to help you make the decision on the right lender of your needs.
Traditional Lenders
Getting a consolidation loan from a traditional lender offers you a lot of benefits. For example, there is a finite process for reviewing and approving your loan. As the borrower, you are a customer and should expect to be treated as such. This means that you will get regular updates as to where your loan is in the approval process. You will be treated with respect and dignity. And your information will be kept secure and confidential.
Additionally, there is no limit on the amount that your loan can be approved for. As long as you have the credit and income to support a higher loan amount, the lender will be able to fund it. And, of course, you can’t overlook the fact that being able to walk into a brick and mortar establishment and discuss your situation with someone, in person. Because, when it comes to loans, having a personal relationship with your lender can go a long way.
Speaking of personal relationships, it is important to point out that there are many different types of lenders that fall under the traditional lender heading that can you utilize to originate your consolidation loan. You can use your local bank or credit union as well as companies that specialize in making loans, consolidation and otherwise, to people. These types of institutions are heavily regulated, which means that they have to comply with a written set of standards that govern how they make and service loans. This tends to make them somewhat more trustworthy than other types of lenders.
Peer to Peer Lending
However, if your credit is a little shaky and you aren’t sure if you’ll be able to qualify for a loan with a traditional lender, then peer to peer lending may be the perfect choice for your debt consolidation loan needs. Peer to peer lenders are online companies that allow you to post your loan needs on a board and allow other members to fund your loan based on how comfortable they feel with your need. The main benefit to this form of lending is that more loan requests are filled because the risk is shared among a much larger and more diverse population of “lenders”, thus reducing the risk that any one individual takes. These loans also generally offer a much lower interest rate than traditional lenders because the rates charged aren’t regulated by the federal government.
However, they can be troublesome in that most people find that their consolidation loan needs aren’t funded in full, meaning that they are able to raise a portion of what they need to pay off their existing debt, but not all of it, leaving them to have to make more than one payment each month. And, while credit and income aren’t the prevailing criteria for approval, they do play a part.
The best way to determine how to get the consolidation loan you need, Visit and find a consolidation loan today and take control of your finances.
A consolidation loan is a financial tool with one specific goal in mind: helping you get out of debt. Visit Consolidation.Loan today to learn more about the benefits of debt consolidation loans.
