Debt Consolidation: Is it Right for You?

Debt Consolidation

Is it right for you?
You made the payment to the furniture company, or was it the payment to the home improvement store for those new appliances?
If you’re like many others, you’ve got so much to do and even more to think about, and high-interest debt certainly isn’t helping. Managing lots of bills with different rates, payments, and due dates, is not only confusing and stressful but could also lead to late or missed payments.

If this seems all too familiar and you’re ready to feel some relief, debt consolidation might be right for you.

Debt consolidation is when you combine all your current debt into one loan with one monthly payment. Not only is this easier to manage and budget for, but the new loan might have better terms than your current debt meaning, you could pay it off faster and save on interest.

When is debt consolidation a good idea?

You feel like you’re not making any progress in paying off your existing debt

Making minimum payments on credit cards can feel never-ending. A debt consolidation loan provides an opportunity to organize all your debt with a term and payment that can help you pay it off faster – and maybe even save money along the way!

Your debt is not out of control

As a general guideline, your total debt should not exceed 40% of your gross income. According to the Financial Reserve, more than 40% could be a sign of financial stress1. Combining your debt into one monthly payment is not only easier to manage but could be less than your current debt payments, saving you money each month and improving your cash flow situation.

Your new loan has better terms than your existing debt

If your credit has improved, you may qualify for more favorable terms, giving you a lower monthly payment and paying less interest over the loan term.

You’re in control of your spending

Debt consolidation is a tool that could help pay off your debt faster. Have a plan in place to keep your spending in check, so you’re not tempted to use your credit cards again and incur more debt.
When you have a plan, debt consolidation can be a great choice to help you get financially organized and back on track
Imagine the relief of going through each month knowing that, instead of making sure that three, four, or even five different payments are correctly budgeted for, tracked, and paid on time, you now have only one payment, one due date with one fixed rate. This is what consolidating debt can do for you.

You can breathe easier and will have the time and mental wherewithal to take a better look at your budget, overall finances, and savings plan. It’s a great step toward improving your financial well-being and creating a brighter future.

Unlock the possibilities

At LendingPoint, we believe everyone deserves to feel the power of possibilities.
Are you ready to see what you qualify for?
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Loans from $2,000 to $36,500*

Debt consolidation FAQs

  • What is this?

    What is a debt consolidation loan?
    A debt consolidation loan combines high-interest debt, like credit cards, into one manageable personal loan. Some advantages of debt consolidation loans include lower interest rates, fixed monthly payments, and fewer payment due dates to track.

  • How much?

    How much can I borrow?
    Our personal loans range from $2,000 to $36,500. The loan amount you may be approved for depends upon your individual credit profile and the information you provide during the application process. The maximum loan amount offered is based upon what is believed to be affordable for you. We take several factors into consideration including your current DTI (debt-to-income ratio) and PTI (payment-to-income ratio).

  • How long does it take?

    How long does it take to receive a preliminary approval decision?
    Based on your credit picture and the information provided on the application, LendingPoint returns your loan offer(s) in just seconds. Once you have selected your preferred loan option, we’ll ask for some additional information and documents. After all required documentation has been received and verified, a final underwriting review and loan approval is completed.

  • Does impact credit score?

    Does applying impact my credit score?
    In one word, no. Providing your basic information to view loan options does not impact your credit score. To determine how much you qualify for, we conduct a “soft pull” of your credit, which is a simple data request so that we can view your credit report. If you select a loan option from us, before final approval we require a “hard inquiry” to verify the information you’ve provided on the application. This “hard inquiry” will be seen as an inquiry on your credit report.
1 – https://www.usatoday.com/story/money/2019/09/04/debt-income-ratio-and-retirement-contributions-why-they-matter/2202775001/
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To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees up to 10% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $2,000. For a well-qualified customer, a requested loan of $10,000 serviced by LendingPoint over a period of 48 months that has an APR of 26.59% with an origination fee of 10% may have a payment of $340.52 per month. (Actual terms and rate depend on credit history, income, and other factors.) The total amount due under the loan terms provided is $16,345.12 and the disbursal amount is $10,000. In the example provided, the total financed amount is increased to receive the full requested loan amount after the origination fee is deducted. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.

* Applications submitted may be funded by one of several lenders including First Electronics Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. Upon final underwriting approval to fund a loan, said funds are often available the next non-holiday business day. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary. Loans are offered from $500 to $10,000 (loan amount maximum based on MCC codes), at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 48 months. For example, for a well-qualified customer, a $5,000 purchase will have a 90-day promotional period with no interest, a 3% fee, and $100 monthly payments. After the promotional period, a remaining balance will be a 24-month term loan, and $263.72 monthly payments with an overall APR of 26.54%.

**Minimum initial transaction of $1,000 in Alabama, Idaho and Iowa.

1. Alimony, child support, or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

2. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning FinWise Bank is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106. The federal agency that administers compliance with this law concerning Coastal Community Bank is the Federal Reserve Consumer Help Center, P.O. Box 1200, Minneapolis, MN 55480. The federal agency that administers compliance with this law for LendingPoint is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

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