- The Federal Reserve Bank of New York reports that American consumer debt has reached $15.84 trillion as of Q1 2022.
- For many people, debt is a looming threat that often feels impossible to escape.
- Fortunately, it’s possible to take control of your finances by taking advantage of low-interest debt consolidation loans.
Debt is a common problem for Americans. In fact, the Federal Reserve Bank of New York reports that American consumer debt has reached $15.84 trillion as of Q1 2022.1 With that much debt spread around the country, it’s no wonder that many can’t afford the necessities.
If you find yourself drowning in debt, it can be easy to lose hope. Fortunately, it’s possible to take control of your finances with careful management of your funds, monitoring your spending habits, and, most importantly, taking advantage of low-interest debt consolidation loans. As such, make sure to start your search online today.
To give you a head start on freeing yourself from debt, here are six low-interest debt consolidation loans to consider applying for.
Nok Lek / Shutterstock1. Marcus by Goldman Sachs
If time is of the essence, you may want to consider going with Marcus by Goldman Sachs. With Marcus, it takes a matter of minutes to apply for a loan online. Furthermore, you can receive the loan in as little as five days if approved.
The specifics of the loan will be determined by your credit score. For example, those with a credit score of 660 or above will qualify for the best interest rates. Speaking of interest rates, Marcus loans can start as low as 6.9 percent APR to as high as 19.99 percent APR.2
Other specifics that are determined by your credit score are the:
- Length of the Loan: Can range from three to six years.3
- Amount of the Loan: Approved applicants can borrow between $3,500 to $40,000.
2. FreedomPlus
Get a debt consolidation loan within 24 hours with FreedomPlus’ same-day approvals. All FreedomPlus asks from you is your signature, a valid ID, and verified income and bank account. If approved, you will receive the loan funds within 24 to 72 hours. Better yet, FreedomPlus guarantees no hidden fees.
With loans available from $7,500 to $50,000, FreedomPlus can help get your finances in check — and over a short period too. In fact, the lender offers loans for as short as two years or as long as five years with interest rates ranging from 7.99 percent APR to 29.99 percent APR. Just be aware that you will need to have excellent credit to qualify for a short-term loan with the lowest interest rate.4
3. Discover
Depending on the amount you need to borrow and the time needed for repayment, Discover has a debt consolidation loan for you. Three options to be exact.5 They are:
- Personal Loans: Allows customers to borrow between $2,500 and $35,000. Offers a fixed rate which ranges from 5.99 percent APR to 24.99 percent APR. Repayment can take three to seven years.6
- Home Loans: Allows customers to borrow between $35,000 to $300,000. Offers fixed rates starting at 99 percent APR on first liens and 6.49 percent APR on second liens.7 Repayment can take 10 to 30 years.8
- Student Consolidation Loans: Allows students to combine their federal and private loans into one. Offers variable rates ranging from 2.49 percent APR to 6.49 percent APR and fixed rates ranging from 3.49 percent APR to 7.99 percent APR. Minimum loan amount is $5,000 and repayment can take 10 to 20 years.9
No matter the debt consolidation loan you choose, Discover will not charge you any fees. All they ask is that you pay on time.
4. Upgrade
Want the peace of mind that comes from a clear payoff date? If so, it might be worth considering Upgrade. The lender puts a big emphasis on providing customers with fair debt consolidation loans that work for their budget and schedule. For instance, while repayment terms can be three to seven years, Upgrade encourages paying off your loan before the end of the term by offering no prepayment fees.
In addition to the lack of prepayment fees, Upgrade’s debt consolidation loans allow customers to borrow between $1,000 and $50,000 with rates ranging from 5.94 percent APR to 35.97 percent APR. Plus, you can receive funding for your loan within one day of approval.10
5. Universal Credit
If you look at Universal Credit on the surface, much of what they offer for debt consolidation loans is similar to Upgrade. While they allow customers to borrow up to $50,000 and offer one day funding much like their competitor, Universal Credit looks to add a more human touch to the process.
The lender’s biggest selling point is their support. In particular, Universal Credit offers to help you with every step in consolidating your credit. Moreover, you can access their support 24/7.
The only other area that differs between the lenders is the interest rate. When applying for a debt consolidation loan with Universal Credit, rates can range from 8.93 percent APR to 35.93 percent APR.11
6. Happy Money
If eliminating or lowering your credit card balance is your top priority, Happy Money has the debt consolidation loan for you. Known as the Payoff Loan, this loan streamlines the process of paying down your credit card with low interest rates and personalized support.
Even better, the loan is designed to help boost your credit score. In fact, some Happy Money members have seen their FICO score by up to 40 points.
Through Happy Money, loans are available between $5,000 and $40,000 with rates starting at 5.99 percent. Depending on the loan, it may take two to five years to repay.12
Take Control of Your Finances with a Debt Consolidation Loan
For many people, debt is a looming threat that often feels impossible to escape. However, when you’re up against a wall, a debt consolidation loan can help you take control of your finances. With that in mind, make sure to start your online search for debt consolidation loans today.
