I wanted to share with you the story of Will, who decided that an unsecured debt consolidation loan was the best way to deal with his debt situation.
Will was kind enough to share his experience and opinions about why he got the debt consolidation loan and his experience getting it.
My big thing was I didn’t want to open up another credit card and consolidate on there, because usually those will let you do 0% for the first year, and I knew if I didn’t pay it all off by then, I would just be stuck in the same place I was in. I had not actually thought about a debt consolidation loan until one of my friends actually told me about Lending Club. I didn’t think it looked too legit at first but then after researching I decided that it might be the route to go. One of my credit cards was up to a 28% interest rate, and I realized that as I was making no real headway on lowering my balance, I had paid almost $500 to them in interest for the first part of the year, and it was for nothing.
Yes with my LendingClub.com loan I am only paying 8.9% on my loan, whereas before I was up to almost 28% with my Discover Card.
It was a bit surprising seeing as unsecured loans typically have a very high interest rate.
The application was very easy to do, it required your basic personal information, social security number, and bank account information so that your loan could be funded. My loan was fully funded within a week by LendingClub.com investors.
It’s a very easy process to apply for a loan, the only thing that may be frustrating is the wait to have your loan fully funded by investors. I believe this would depend on the amount you were wishing to borrow, however I did not have a long wait at all and my loan was $6k.
Also, your monthly payments are auto-drafted from the bank account you provide to them for payments, so you don’t really have a choice about sending in the payment because it is auto-drafted on the same date every month. They are lenient however in giving you a couple of days extra perchance your pay schedule doesn’t happen to synch up with when the money is supposed to be drafted, all you have to do is send their customer service an email.
Having been through the process of deciding that a debt consolidation loan was good for you and pursuing the loan, what advice do you have for others in debt and thinking about what to do?
My first bit of advice would be to not get yourself into the situation that I got into with credit cards! But if they are in a bind like I was, I think it would be a pretty good choice to pursue a debt consolidation loan. Overall I am making way more progress at eliminating the debt that I had, and my money isn’t going completely towards interest. It is also nice to not have to worry about 2-3 separate payments to different card companies, and to have just one lump payment go out once a month.
It’s fortunate that Will decided to go through LendingClub.com, a person-to-person lending network that specializes in unsecured debt consolidation loans. In fact I happen to be an investor in some reader loans and help to fund them as well.
If you decide to apply for and get approved for a debt consolidation loan through this site, please post your loan number in the comments section below and I’ll gladly help to fund it.