The rise of the internet has dramatically expanded the financial options open to consumers. Not too long ago, you had to go to a brick and mortar location for everything, from your daily purchases to financial products like mortgages, loans, and credit services. However, people are doing more of their shopping online, so it’s no surprise that they are increasingly looking to online solutions for the financial products they need.
One of the most popular financial products today are those that deal with debt consolidation. People are interested in debt consolidation because it simplifies the process of paying your bills. Additionally, debt consolidation can frequently lower the amount you pay each month and save you thousands to tens of thousands of dollars over the course of your loan.
Working with a Nonprofit Online Debt Consolidator
Another trend that has been emerging in the credit and debt industries is the desire to work with nonprofit entities. After years of stories of consumers being scammed by for-profit debt and credit firms, consumers have increasingly seen non-profit credit and debt services as a place they can go for advice and services while feeling secure that they won’t get scammed.
Online nonprofit debt consolidators offer the best of the digital world along with the safety and security of a nonprofit entity. These organizations offer high-quality credit counseling and debt relief solutions tailored to your individual needs, while also affording the convenience of 24/7 access through online portals.
Online nonprofit debt consolidators offer many different options for consumers. Nearly all have counseling services to help you understand your credit and debt situation. Most companies also can make recommendations for products and services for you to apply for to help resolve your debt. The best nonprofit debt consolidators will offer consolidation loans. These loans let you pay off your current debt and then keep track of one payment instead of several. Consolidation loans come at a lower interest rate than most other kinds of debt, which saves you money on your monthly payment and over the course of the loan.
Nonprofit debt consolidation firms also offer services which allow you to pay them to keep track of your loans and distribute funds accordingly. These services charge a reasonable fee, usually from $25-$50 per month. These programs allow you to make one payment to the non-profit entity, which then ensure that all of your bills are paid on time.
What is Nonprofit Debt Consolidation?
Nonprofit debt consolidation can take a few different forms. Debt consolidation loans are a loan that you are issued to pay off your current debts. Usually the lender will directly pay off your debts for you, so you don’t have to worry about the hassle of sending the money to your creditors or the temptation of having such a large amount of money sitting in your bank account.
Nonprofit debt consolidation has some added benefits. The biggest bonus you get for using a nonprofit debt consolidation option is that these firms almost always provide advice and counseling on your spending habits. This can help you identify the root causes of your debt problems so you can work to alleviate them. After all, there’s not a whole lot of use in getting a consolidation loan to pay off your debts if you’re just going to rapidly accumulate more debt.
Nonprofit debt consolidation also has other benefits, including:
- The ability to consolidate your credit bills into one easy monthly payment
- Pay off your debt faster than making payments to your current creditors
- Lower your interest rates regardless of your credit score
- Stop worrying about collection agencies calling you for payment
- Avoid late fees and other charges
- Special online tools to help you get a better understanding of your financial status
- Help you create and stick to a feasible budget and financial plan.
Using Online Debt Management to Consolidate Credit Card Bills
Everyone hates getting a credit card bill. For many people, a look at their credit card bill can be like looking at the ghost of bad financial decisions past. With online debt management and debt consolidation, you’ll be able to pay your bills on time to avoid late fees, credit report hits, interest rate spikes, and other complications.
Online Debt Consolidation Loans
There are several options when it comes to finding a debt consolidation loan online. Many people prefer to work with an online lender. When you get a loan online you don’t have to speak face to face with a person, which is a boon for those who feel ashamed of their debt and credit situation.
Most nonprofit companies don’t offer loans themselves, but instead have debt management programs that allow you to consolidate your payments through the company. However, there are also several online lenders that you might consider for a consolidation loan.
Lending Club is one of the most popular online lenders. It is a peer-to-peer lender network. Borrowers fill out an application and profile, and then the website uses a formula to score borrowers and rank them. Individuals can then put money toward your consolidation loan, and they earn money on the interest as you repay the loan. Interest rates range from 5.99% to 35%, which makes it a good option if you have high interest credit cards.
Prosper is another online loan option. The maximum loan is $35,000, and interest rates range from 5.99% to 36%. Prosper also charges a closing fee of 1% of the loan.
Avant is a good online option for borrowers with a credit score less than 700. The company funds the loans directly, rather than being a peer-to-peer network. The interest rates they offer are a bit higher than some other options, between 10 and 36%, but there is no origination fee.
Upstart is an online lender focusing on younger consumers with a minimal credit history. They use a computer model to determine your qualifications for a loan between $3,000 and $25,000. They offer some of the lowest rates for younger borrowers.
Picking the Best Online Consolidation Lender
In order to get the best online loan, you need to compare the different interest rates and fees you are offered to each other and to what you are currently paying. You should favor the product with the lowest interest rates, as you’ll generally pay less for these products. Make sure that the fees and charges don’t make your loan cost more than you expect, though.