A Step-by-Step Approach to Obtaining a Debt Consolidation Loan

After much consideration, you have decided to get a debt consolidation loan to service your debts and have them in one place with one fixed interest rate and one loan. How do you go about it? This article highlights the step-by-step approach to obtaining a debt consolidation loan from a lender such as Symple Lending.

  1. Calculate Your Total Debt

If you have multiple debts, it’s best to list them all, along with the interest rates and monthly installment requirements. You can use an excel sheet to highlight and add all the debts to get the total debt. If you look at the list, you might feel overwhelmed and defeated. Yes, debt is a leading cause of stress. According to the Debt Counseling Society, one way to deal with debt is to make a plan to pay it off.

  1. Check and Confirm Your Credit Score

Next, you should check your credit score, a number generated from your credit report. The score tells the lender your likelihood of paying back a loan. You can get your credit report once a year from one of the accredited national bureaus: TransUnion, Equifax, and Experian. To get a free credit report, go to AnnualCreditReport or call 1-877-322-8228.

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  1. Compare Interest Rates from Various Lenders

Once you have confirmed that your credit score has no errors, you can shop for quotes from lenders. Since you want the lowest fees possible, look for lenders with minimal origination fees and interest rates. You can visit the Consumer Financial Protection Bureau to learn how to review loan terms so you don’t get into a manipulative loan plan.

  1. Apply for a Debt Consolidation Loan

If you’re satisfied with a consolidation loan, you can apply. Ensure you consult a knowledgeable associate at Symple Lending, so you are well-informed about every aspect of the loan. Present all your documents to the lender so the process can be smooth.

  1. Pay Current High-Interest Loans

Once you receive the loan, pay your high-interest loans. According to a report by CNBC, one of the reasons people get back into the debt cycle is because they result in old unhealthy financial habits, for example, overspending on their credit cards. Therefore, make payments immediately and make timely deposits to improve your credit score.

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Final Thoughts

While obtaining a debt consolidation loan may seem complex, you can apply and pay for one by following this process. Your aim should be breaking off from recurring debts, so you should have that perspective when researching and making a payment plan for your debt consolidation loan.