Most people find multiple sources of debt hard to keep track of. Plus, the high interest rates and fees associated with certain loans may be overwhelming.
Debt consolidation services help their clients combine various unsecured debts into one fixed monthly payment. Which one is right for you?
This guide will explore the best debt consolidation services, starting with National Debt Relief, our top pick. Find out which company can help you achieve financial freedom.
Best Debt Consolidation Services: Quick Overview
- National Debt Relief - Best debt consolidation services overall
- Accredited Debt Relief - Best for transparent terms
- Monevo - Best lending technology
- Fiona Debt Relief - Best for multiple loan options
- LendingTree - Best user-friendly platform
1. National Debt Relief - Best Debt Consolidation Services Overall
Pros
- Settled over $1 billion since 2009
- No fee charged until debt is settled
- Straightforward fees and repayment structure
- Offers personalized plans for each client
Cons
- Website could be updated
Overview
National Debt Relief is our top pick among the best debt consolidation services overall. Its dedicated team of negotiators has successfully helped clients reduce their debt balances, helping borrowers pay off more than $1 billion since it was founded in 2009.
The company offers a free consultation, during which the team evaluates your financial situation. Based on this assessment, it develops a personalized plan to negotiate with your creditors.
Why We Chose National Debt Relief
National Debt Relief is a standout in the field of debt consolidation services due to its specialized expertise, reliable track record, and zero upfront fees. The team's ability to negotiate lower debt balances makes it a trustworthy choice for anyone looking for financial relief.
Fees, Rates, and APR
- Fees between 15 to 25% of reduced debt amount
- No upfront fees
- Origination fees: 1 to 5%
- No early payoff penalties
- APR: 4.99-24.99%
Summary
National Debt Relief is known for its impressive ability to reduce the debt balances of its clients. With its attractive loan rates and excellent services, it excels among the best debt consolidation services that assist individuals in taking the initial steps towards achieving a brighter economic future.
>>Find debt consolidation services with National Debt Relief
2. Accredited Debt Relief - Best for Transparent Terms
Pros
- Aided over 300,000 clients in debt relief
- Accredited by BBB and AFCC
- Clear debt consolidation terms
- Claims to reduce unsecured debts up to 40%
Cons
- Not available in every state
Overview
Accredited Debt Relief, founded in 2011, is a well-regarded firm that focuses on debt consolidation services with straightforward terms. Its primary objective is to help borrowers overcome financial hardships by conducting negotiations with creditors, aiming to reduce the total amount of debt owed.
Accredited Debt Relief has successfully assisted over 300,000 clients in resolving more than $1 billion in debt. The company offers competitive rates for debt consolidation loans, providing relief for borrowers struggling with debt.
Why We Chose Accredited Debt Relief
Accredited Debt Relief has earned accreditation from esteemed organizations like the American Fair Credit Council (AFCC) and the Better Business Bureau (BBB), showcasing its commitment to upholding industry benchmarks. Its fair practices and tailored client-centric approach makes it one of the best debt consolidation services in the market.
Fees, Rates, and APR
- Free consultation
- Fees from 15 to 25% total debt
- Origination fees: 1 to 6%
- APR between 4.9 to 35.99%
Summary
Accredited Debt Relief’s expertise lies in offering personalized debt consolidation services with clear terms. It aims to help clients minimize their debt, improve their credit score, and pave the way to a better financial standing.
>>Find debt consolidation services from Accredited Debt Relief
3. Monevo - Best Lending Technology
Pros
- Matching technology connects clients with over 150 banks and credit providers
- More than $1 billion in loans to borrowers
- Gives rate examples without asking for contact information
- User-friendly loan comparison table
Cons
- May sign up clients with emails from partner lenders
Overview
Since 2008, Monevo Inc., a prominent fintech firm, has been helping UK consumers find personal loans through its cutting-edge online loan marketplace. In 2017, the company further extended its loan comparison services to meet the needs of borrowers in the United States.
Monevo focuses on delivering top-notch loan options and competitive rates for debt consolidation services. It provides customers with multiple loan options so they can get the ideal solution to their debt.
Why We Chose Monevo
With its advanced loan-matching technology, Monevo stands out as one of the best debt consolidation services. Clients can easily complete a quick and free application. Afterward, Monevo's powerful matching engine will swiftly connect them with suitable lending partners who can provide real-time loan offers.
Fees, Rates, and APR
- Free matching service
- No origination or late fees
- APR: 1.99 to 35.99%
Monevo operates as a matching service, earning its revenue primarily from its lending partners. While Monevo itself does not impose any origination or late fees on clients, there may be fees associated with the lender that borrowers should consider.
Summary
Monevo is a modern platform that specializes in simplifying the loan application process for debt consolidation services. It ensures that borrowers find a loan from lending partners that aligns with their financial needs and offers a feasible payment plan.
>>Find debt consolidation services from Monevo
4. Fiona Debt Relief - Best for Multiple Loan Options
Pros
- Free consultation
- Analyzes debt for each client for individualized relief
- Generates personalized plans
- Provides tons of consolidation options
Cons
- Fees from some third-party lenders
Overview
Fiona Debt Relief serves as a flexible online platform, offering a wide range of competitive debt consolidation services. This makes it the top choice for people seeking various loan options from numerous lenders. The company's approach is highly tailored, as it provides customized solutions that cater to the unique financial situations of each client.
Why We Chose Fiona Debt Relief
Fiona Debt Relief stands out in our list of the best debt consolidation services because it caters to individual needs and budgets through multiple loan alternatives. With a focus on comprehensive analysis, the team efficiently evaluates potential clients' financial standing.
The company's main objective is to provide seamless and fast debt resolution, offering guidance from a team of experienced financial experts.
Fees, Rates, and APR
- Origination fees: $0 to $750
- No early repayment fees
- APR from 1.99 to 35.99%
Summary
Fiona Debt Relief is a versatile option for borrowers who want to choose from various types of debt consolidation services from different lenders. It works closely with borrowers to create a customized plan that helps them achieve their financial goals.
>>Find debt consolidation from Fiona Debt Relief
5. LendingTree - Best User-Friendly Platform
Pros
- Easy-to-use debt consolidation platform
- Competitive interest rates and loan terms
- Convenient comparison table
- Clear repayment structures and fees
Cons
- Some lenders charge extra fees
Overview
LendingTree provides straightforward and practical solutions for borrowers interested in debt consolidation services. This company addresses the specific needs of its clients by offering a variety of loans with favorable terms and competitive rates.
With LendingTree's user-friendly platform, the search and application process becomes simplified. It features personalized options that are tailored to the unique financial situations of customers.
Why We Chose LendingTree
LendingTree has an edge over other best debt consolidation services because its intuitive platform provides access to favorable debt consolidation rates. The easy to navigate website guides you through each step of the loan application process, allowing you to view, compare, and sort through tons of loan options.
LendingTree also transparently lists the fees, payment terms, and expected repayment time for each loan choice.
Fees, Rates, and APR
- Origination fees: 0 to 6.99%
- Early payment and late fees set by lender
- APR from 5.99 to 35.99%
Summary
With its vast network of lenders and user-friendly platform, LendingTree simplifies the search for the best debt consolidation services. It ensures that clients can find the most suitable solution for their individual financial circumstances.
>>Find debt consolidation services from LendingTree
What Is a Debt Consolidation Program?
A debt consolidation program is a service that helps borrowers simplify the debt repayment process by combining multiple debts into one monthly payment. These programs often work with creditors to negotiate lower interest rates or reduced monthly payments. They aim to make it easier for individuals to manage their debts and ultimately become debt-free.
How Does Debt Consolidation Work?
Debt consolidation works by taking out a new loan or enrolling in a debt management program to pay off existing debts. By consolidating multiple debts into one, individuals can simplify their repayment process and potentially save money on interest.
The best debt consolidation services may negotiate with creditors to secure lower interest rates or reduced monthly payments, making it easier for individuals to manage their debts.
>>Find debt consolidation services with National Debt Relief
Benefits of Debt Consolidation Services
Debt consolidation services offer several benefits including:Simplified Repayment Process
One of the main advantages of debt consolidation services is the streamlined repayment process. Instead of juggling multiple debts and due dates, borrowers make a single monthly payment toward their consolidated debt. This can help people stay organized and reduce the risk of missing payments.
Potential Interest Savings
Debt consolidation services often negotiate with creditors to secure lower interest rates for their clients. This potentially helps borrowers save money in the long run and pay off their debts faster.
Debt Payoff Timeline
Debt consolidation services provide people with a clear timeline for paying off their debts, helping them stay motivated and focused on their financial goals. Knowing that there is an end date to their debt repayment journey can provide a sense of relief and encourage individuals to stick to their repayment plan.
Professional Guidance and Support
Lastly, debt consolidation services often provide borrowers with professional guidance and support throughout their debt repayment journey. These companies can offer financial education, budgeting tips, and personalized advice to help borrowers make informed decisions and improve their financial well-being.
>>Find debt consolidation services with National Debt Relief
Drawbacks of Debt Consolidation Services
You should also consider the potential drawbacks of debt consolidation services before choosing this option:Potential Impact on Credit Score
Enrolling in debt consolidation services or taking out a consolidation loan may have a temporary negative impact on credit scores. This is due to the credit inquiry or opening of a new account. However, if borrowers make timely payments on their consolidated debt, their credit score can actually improve over time.
Risk of Accruing More Debt
Consolidating debts does not eliminate your debt; it simply combines them into one monthly payment. There is a risk that individuals may continue to accumulate more debt if they do not address the underlying issues that led to their initial debts.
Fees and Costs
Debt consolidation services may charge fees for their services. Carefully review the terms and conditions and understand all associated costs before committing to a debt consolidation program or loan. Some common fees include origination fees, monthly service fees, and prepayment penalties.
Potential for Long-Term Repayment
While debt consolidation can help simplify the repayment process, it does not guarantee immediate debt freedom. The length of the repayment period will depend on the financial situation and the terms of the consolidation program or loan. It's important to have realistic expectations and be committed to making regular payments to achieve debt freedom.
>>Find debt consolidation services with National Debt Relief
Types of Debt Consolidation Services
The following are some of the many different types of debt consolidation services available to borrowers:Nonprofit Debt Consolidation
These programs, also known as credit counseling agencies, offer assistance to people struggling with debt. They typically negotiate with creditors to lower interest rates and create a repayment plan that fits the person’s budget.
Nonprofit debt consolidation services also focus on educating individuals about financial management and helping them regain control of their finances.
Debt Consolidation Loans
Debt consolidation loans are personal loans specifically designed to consolidate multiple debts into one. People can use the loan proceeds to pay off their existing debts, leaving them with a single monthly payment. These loans may have fixed interest rates and repayment terms, making it easier for borrowers to budget their monthly expenses.
Debt Settlement
Debt settlement programs involve negotiating with creditors to settle debts for less than the full amount owed. People in debt settlement programs typically make monthly payments into an escrow account until there is a sufficient amount to negotiate a settlement.
While debt settlement can provide debt relief, it may also have a negative impact on credit scores and involve significant fees.
>>Find debt consolidation services with National Debt Relief
Factors To Consider When Choosing a Debt Consolidation Service
When choosing a debt consolidation service, it's important to consider several factors. The Management.org team used the following factors to come up with the list of the top debt consolidation options.Types of Debt Covered
Different debt consolidation services may have specific requirements regarding the types of debt they can consolidate.Some services may only work with unsecured debts, such as the best payday loans, credit card debt and medical bills. Others may also include secured debts, such as auto loans or mortgages. Choose a company that can accommodate your specific debt situation.
The Requirements
Each debt consolidation service may have different eligibility requirements. These requirements may include a minimum credit score, a certain level of income, or a maximum debt-to-income ratio. Review the requirements and ensure that you meet them before applying for a debt consolidation service.
Company’s Track Record
Before choosing among debt consolidation services, research the company's track record and reputation. Look for reviews, testimonials, and ratings from reputable sources to gauge the quality of each company’s services. A reputable company should have a history of successfully helping individuals consolidate their debts and achieve their financial goals.
Cost and Fees
Consider the cost and fees associated with debt consolidation services. This may include origination fees, monthly service fees, or other charges. Compare the costs among different services and choose one that offers competitive rates and transparent fee structures.
Customer Support
Customer support is an important aspect of debt consolidation services. Look for a company that provides accessible and responsive customer support. This can be crucial if you have questions or concerns during the consolidation process.
>>Find debt consolidation services with National Debt Relief
Debt Consolidation vs. Debt Relief: What’s the Difference?
Debt consolidation and debt relief are two different approaches to managing and resolving debt.
Debt consolidation involves combining multiple debts into one, typically through a consolidation loan or program. The goal is to simplify the repayment process and potentially save money on interest. Though consolidating credit card debt and other loan types does not eliminate the debt, restructuring your loans makes it more manageable.
Debt relief, on the other hand, aims to reduce the overall amount of debt owed. This can be achieved through debt settlement negotiations or alternative options such as debt management plans. Debt relief programs often involve negotiating with creditors to lower the outstanding balance or interest rates.
Both debt consolidation and debt relief have their pros and cons. Carefully evaluate your financial situation and goals before deciding which approach is best for you.
Alternatives to Debt Consolidation Loans
While the best debt consolidation services can be an effective way to manage debt, here are some alternatives to consider:
Home Equity Loans
If you own a home, a home equity loan or line of credit may allow you to borrow against the equity you have built. This can provide a lump sum of money to pay off your debts. However, this may put your home at risk if you are unable to make the payments.
Balance Transfer Credit Cards
Balance transfer credit cards typically offer an introductory period with a low or 0% interest rate on transferred balances. This can provide temporary relief from high-interest debt, allowing you to pay off the balance without accruing additional interest.
However, read the terms and conditions carefully and be aware of any fees or changes in interest rates after the introductory period.
Debt Relief Services
Debt relief services, such as credit counseling agencies or debt management companies, can help negotiate with creditors to reduce interest rates or create a manageable repayment plan. These services often provide financial education and support to help individuals regain control of their finances.
Debt Settlement
Debt settlement gives borrowers a chance to negotiate with creditors to agree on a debt for less than the total amount owed. This can provide debt relief, but it may also have a negative impact on credit scores and involve significant fees. Consider the potential consequences before pursuing debt settlement.
Bankruptcy
Bankruptcy should only be used as a last resort. As a legal process, it lets people get rid of their debts or settle them in bankruptcy court.
>>Find debt consolidation services with National Debt Relief
Best Debt Consolidation Services: FAQs
Let’s take a dive into the most common questions about the best debt consolidation services.Do Debt Consolidation Loans Hurt Your Credit?
Applying for a debt consolidation loan may result in a temporary decrease in your credit score due to the hard inquiry. However, if you make timely payments on the loan, it can have a positive impact on your credit over time. You can also seek assistance from credit repair services to further improve your credit standing.
What Is the Difference Between Debt Consolidation and a Balance Transfer?
Debt consolidation involves combining multiple debts into one, typically through a loan or program. A balance transfer, on the other hand, involves moving an existing credit card balance to a new card with a lower introductory interest rate. While both options aim to simplify debt repayment, debt consolidation is more comprehensive and can include various types of debt.
Are Debt Consolidation Loans Secured or Unsecured?
Debt consolidation loans can be either secured or unsecured. Secured loans require borrowers to offer an item of value as collateral, such as a vehicle or home equity, to secure the loan. You don’t need to offer collateral to qualify for unsecured payday loans online, but they may have higher interest rates. The loan type you qualify for will depend on your financial situation and creditworthiness.
Is Debt Consolidation a Good Idea?
Debt consolidation can be a beneficial option for people struggling to manage multiple debts. It can simplify the repayment process, potentially save money on interest, and provide a clear path to becoming debt-free. However, it's crucial to evaluate your financial situation, consider the costs and fees, and choose a reputable debt consolidation service.
How Long Does Debt Consolidation Take?
The time it takes to consolidate debt will depend on various factors, including the type of debt consolidation service, the amount of debt, and the individual's financial situation. Debt consolidation loans typically have fixed repayment terms, ranging from two to seven years.
How Much Does Debt Consolidation Cost?
How much consolidating your debt will cost depends on the service provider and the specific terms of the consolidation loan or program. Review the fees associated with the service, including origination fees, monthly service fees, and any other charges. Comparing costs among different services can help you choose the most cost-effective option.
Can I Consolidate Payday Loans With Bad Credit?
Consolidating payday loans with bad credit can be challenging, as many lenders prefer borrowers with good or excellent credit. However, some debt consolidation services specialize in working with individuals with lower credit scores. It's important to research and compare different services to find one that can accommodate your specific needs.
>>Find debt consolidation services with National Debt Relief
Best Debt Consolidation Services: Final Word
Choosing the best debt consolidation services is a crucial step towards managing and eliminating your debts. Consider your financial goals, eligibility requirements, cost, and reputation of the service provider.
Finding a service that provides a variety of loan options at competitive rates is your top priority. Our top pick is National Debt Relief, but other debt consolidation services on our list may better suit your personal needs.
Moneycontrol Journalists were not involved in the creation of the article.
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