Getting into debt is very easy to accomplish; however, getting out of debt is almost impossible without help. Credit card bills, unsecured loans, and medical bills can add up quickly with no end in sight. Before you know it, you are struggling just to make the minimum payment. Having an uncontrollable amount of debt can be very stressful. You need some solution that will offer you a way out of debt. In some cases, an unsecured online personal loan in San Antonio, TX might be the answer you need. Many companies online provide debt relief services. Two of the more reputable companies that can help you get out of debt include Lending Club and National Debt Relief.
Lending Club Personal Loan Requirements
Lending Club has granted more P2P loans than any company in the United States. The company will match you with a person who is willing to invest in your loan, and you will pay them back over a period of time. The interest rates are competitive, and the monthly payment amounts are affordable. However, not everyone will qualify for a loan with Lending Club. In order to be approved for a loan with Lending Club, you must meet the following requirements:
• A credit score of at least a 600. However, the average credit score for borrowers is 699.
• Have an established credit history. It is recommended that you have a credit history of at least 15 years.
• A good income. Most borrowers make at least $75,000 annually.
• Low debt-to-income ratio. Your debt-to-income ratio, not including your mortgage, should be less than 19%.
Applying for a Lending Club Personal Loan
You can apply for a personal loan with Lending Club easily online. Simply go on the website and complete the application. Checking your rate online will not affect your credit score. If you meet the requirements, Lending Club will show you your loan offers. You can view your interest rate, terms of the loan, and amount you will pay each month. The lender will show you the debt consolidation loan cost, so you will know how much you are paying. The company will give you a grade. Investors will look at this when deciding whether to offer you a loan. When Lending Club sends you their offer, make sure you review the debt consolidation loan cost, so you will know what you are paying for the loan.
Investors must fund at least 60% of your loan in order to continue with the next step. You will then need to verify your identity and bank account information. You might need to submit some documents to the lender. Before the loan can be issued, Lending Club will conduct a hard credit check to review your credit. After the entire process is completed, you will receive the fund within a few days.
Lending Club Loan Terms and Fees
The minimum amount for a Lending Club loan is $1,000, and the maximum amount is $40,000. The loan term will be between three to five years, and it usually takes about a week to receive the funds. You will pay an origination fee, which is normally 1% to 6% of the amount of the loan. You can pay the full balance of the loan at any time at no additional charge. Debt consolidation loan fees will be assessed for a late payment.
For example, if you received a $35,000 loan from Lending Club, your interest rate would be approximately 8.24% for a 36- month loan. Over the 36 months, you will pay approximately $4,623 in interest, and you will pay off your debt much quicker. You will save about $14,626 in interest. Your total monthly payment will be $1,101.
For a 35,000 loan that is 60 months, you will pay $7,822 in interest, which will save you $11,427. Your monthly payment amount would be $714. Your interest rate would depend on your credit, but it would be about 8.24%. The debt consolidation loan fees would be much less than what you would pay without debt consolidation.
National Debt Relief
National Debt Relief is a better option if you do not have excellent credit or if your credit cards are maxed out. They are a settlement company that can help you settle your debts for a lesser amount than what you currently owe. When you choose National Debt Relief, you might already be behind on your payments. You are really struggling to keep up with your payments, so you need to find some relief from your financial problems. National Debt Relief will work with your creditors to settle your debt without an unsecured online personal loan in San Antonio, TX.
Advantages of National Debt Relief
Some of the benefits of National Debt Relief include:
• They may be able to stop harassing calls from creditors
• They can resolve your debt without bankruptcy
• The will come up with a payment you can afford
• They will settle with a much lower amount than you actually owe
• Reduces your debt
• Gets you out of debt faster
Disadvantages of National Debt Relief
Debt relief is not for everyone, so you need to be familiar with the process. Some of the disadvantages include:
• It will have a negative impact on your credit score
• May affect your taxes
• You are still defaulting on your payments
Requirements for National Debt Relief
In order to qualify for a debt settlement program with National Debt Relief, you must have at least $7,500 in qualifying debt. You can fill out some information online to see if you meet the requirements. A representative from National Debt Relief will then contact you to review your information.
How National Debt Relief Works
Once you are enrolled in the program, the company will begin contacting your creditors to negotiate on your behalf. You will make your monthly payments into a trust, and the funds will be used to pay off your creditors. It will take a few months for you to save up enough money for them to negotiate with your creditors so for a while it may seem like they are doing nothing and you’re just paying them money but that’s not the case. While a creditor may be willing to settle after a few months and you think it’s a good offer, NDR has the experience to know that there is a better offer coming down the line and you’ll be much happier that you saved even more money. It takes patience and perseverance to trust the process that has helped clients save resolve over $5 billion dollars in unsecured debt.
National Debt Relief Rates and Fees
With National Debt Relief, the settlement will cost about 18-25% of what you owe. In reality, you might be able to save up to 50% of what you owe. The program will take 2 to 4 years to complete. However, you can deposit extra money into your account at any time to shorten the life of the program.
With a $35,000 program with National Debt Relief, you can save $62,000 in interest with a 24-month program. This is assuming you are only making the minimum payments. Your monthly payment amount will be from $800-1000, and you will get your debt resolved much quicker. For a 48 month program, you will pay about $600 into your account each month. If these payment amounts are not within your budget, they will work with you to get a payment you can afford.
The bottom line is that these companies offer two different ways to reduce your debt with an unsecured online personal loan in San Antonio, TX. If you have good to excellent credit, a loan from Lending Club might be your best option. You can obtain a loan at a good rate to pay off your debts. You will have one payment to Lending Club. If your credit is not great or if you are already behind on your payments, you should consider National Debt Relief for a debt settlement program. This will have an impact on your credit score, but it can get you out of debt without bankruptcy. If you are not making your payments, your credit will be hurt anyway.
You need to look at your situation to see which company for debt relief is right for your financial situation. You can then be on your way to a life free from debt.