Consolidating debt car loans
» MORE: Nerd Wallet’s best balance transfer credit cards Pros: Back to top You can use an unsecured personal loan from your local bank or credit union or an online lender to consolidate credit card or other types of debt.The loan should give you a lower interest rate on your debt or help you pay it off faster.However, your credit scores should rebound if you make on-time payments and avoid running up new debt.» MORE: How debt consolidation can affect your credit Interest rates on mainstream debt consolidation loans typically range from 6% to 36%.Nerd Wallet recommends visiting your local credit union first.Most credit unions offer their members flexible loan terms and lower interest rates than online lenders, especially if you have a low credit score.(Learn more about auto refinancing and student loan refinance options.) Step 1: This shows the following results, based on the figures you entered: Total balance: The sum of all your debts.Combined interest rate: Your average weighted interest rate for all entered debts.
You may see a temporary dip in your credit scores after applying for a debt consolidation loan because lenders require a hard credit pull.
To do this, many or all of the products featured here are from our partners. You can also compare loan options based on your credit score.
Debt consolidation — rolling multiple unsecured debts into a single payment — can be a useful strategy when you want to simplify payments toward your debt.
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