The 5 Best Debt Consolidation Companies

Debt can feel like a burden that weighs down your entire life. If you’ve fallen in a financial hole, recovery might not feel possible, but with some work, it’s possible. Debt consolidation companies can help you manage your debt, organize your finances, and regain control of your future.

Here are the five best debt consolidation companies for 2019. No matter how hopeless your debt might feel, they can help.

What is a Debt Consolidation Company?

Before we look at the best companies, let’s first have a quick overview of what they do.

A debt consolidation company offers low-interest loans you can use to pay off higher-interest debt. The low interest helps make repayment faster and more manageable.

Additionally, debt consolidation companies typically offer debt management programs. Generally, debt consolidation has the least negative impact on your credit score compared to the alternatives (such as bankruptcy or transferring the debt to a credit card).

Purefy

Are you one of the 44 million Americans with student loan debt? Purefy is here to help. They specialize in student loan refinancing. They’ll consolidate either one or several student loans into a new loan with:

• A lower interest rate
• A longer repayment length
• A new, manageable monthly payment

Their services apply to federal, private, and Parent PLUS loans.

Generally, student loan refinancing is best suited for anyone no longer in school, whether they’ve graduated or dropped out. 

On the downside, refinancing usually requires the loss of certain benefits, including income-based repayment, deferments, and forbearance.

Pros:

• Designed specifically for student loans
• Available for all major types of student loans
• Allows you to consolidate multiple loans into one

Cons:

• Best rates require a cosigner with good credit
• Requires the forfeiture of deferments, income-based repayments, and other benefits

SoFi

Over 800,000 members chose SoFi for help with debt consolidation. They’re a trusted name in loans with a commitment to personal service and ethical practices.

Debt consolidation loans range from $5,000 to $100,000. They have low, fixed rates with no origination fees. Also, if you lose your job while you have the loan, they’ll let you pause your payments temporarily. 

One major benefit is the easy online application process. If you don’t want to talk to a person, you don’t have to. However, they also offer a wide range of personal consultation services if you’re interested.

Pros:

• Offers a variety of consolidation options
• Easy online application
• Payments pause if you lose your job

Cons:

• Far more options for someone with good to excellent credit
• Requires a minimum of $5,000 debt

Related: Increase Your Tax Returns With These Tips

Curadebt

Founded in 1996, Curadebt has a well-established reputation for flexibility and customer service. They offer a free review to help determine whether a commission-based or fixed-fee program is your best option.

Their employees are often considered a major strength. A team member will personally talk to you to learn about your current situation plus your short and long-term goals. Even better, that same person will remain your main point of contact during the entire repayment process.

However, Curadebt requires that you have unsecured debt of $10,000 or more. Additionally, their services aren’t available in 14 states, including Colorado, Iowa, Kansas, and West Virginia.

Pros:

• Over 35 years of experience
• Both commission and fixed-fee programs are available
• Friendly, knowledgeable employees

Cons: 

• Requires a minimum of $10,000 in debt
• Services not available in every state

Lending Club

Lending Club is a bit different than the other consolidation companies listed. Instead of offering loans from a traditional bank, they offer what are called peer-to-peer loans that are crowdsourced by investors.

As a result, these loans cater to people with not-so-great or downright-terrible credit. You can secure a personal loan of up to $40,000. It’s an excellent alternative if your credit score limits what other debt consolidation companies can offer.

The downside is you’ll face a few more fees than many other companies. Lending Club has an upfront fee between 1% and 6% of the loan. If you’re taking out a loan upwards of $10,000, these percentage-based fees can be substantial.

Pros:

• Caters to people with bad credit
• Offers loans up to $40,000
• Easy online application process

Cons: 

• Upfront fees range from 1% to 6%
• Non-traditional, peer-based debt consolidation

Lending Tree

You’ve likely heard of Lending Tree; their commercials are seemingly everywhere. They’re one of the largest, if not the largest, debt consolidation companies in the country.

However, they don’t offer debt consolidation loans directly. Instead, they connect you with a wide range of potential lenders. You can quickly and easily compare terms and rates to find a consolidation loan that works for you.

Although loans vary, you’re typically looking at a maximum borrowing limit of around $35,000 with repayment within no more than five years.

Working with a large company does have some drawbacks. You likely won’t get a ton of personal attention. Plus, they require a credit score and some personal information before you can review potential options.

Pros:

• Compare a variety of loans quickly
• Money arrives within 24 hours of approval
• Easy online application process
• Designed for folks of all credit levels

Cons:

• Lack of personal service
• Prospective borrowers must provide a credit score and personal info

Final Thoughts

Don’t drown in an ocean of debt. Reach out for the help of a debt consolidation company. They can act as a life raft to help guide you towards secure financial footing. By combining your outstanding debts into a single, manageable loan, you can start down the path to a new, better, and debt