Truth: Debt consolidation is dangerous because it only treats the symptom.Debt consolidation is nothing more than a con because you think you're starting with a clean slate.Replace your credit card debt with a consolidation loan through Prosper, where your interest rate won’t change and your loan principal gets paid down as you make fixed monthly payments.At Prosper, we understand the importance of maintaining the best credit score possible.But most of the time, after someone consolidates their debt, the debt grows back. They still don’t have a game plan to pay cash and spend less.They also probably haven’t saved for all of the “unexpected events,” which will eventually become debt too.You'll probably find a lower interest rate, depending on your situation.Plus, instead of keeping track of multiple bills, payments and due dates, you will have just one payment to make.
We offer a number of different debt consolidation options that can provide you with a clearer picture of your overall financial status and a simpler timeline to getting out of the red.
If you need help educating yourself on your debt consolidation options, you can start with the section titled “What is Debt Consolidation?
” If you already know debt consolidation is the right path for you, here is a preview of the best debt consolidation loans revealed by my research: Next, I’ll dive into more detail on each company.
Prosper’s online electronic payment system lets you manage your entire consolidation loan directly and with ease.
If you’re making the minimum monthly payments on credit card debt, chances are you’re mostly paying the interest, and not paying down the actual principal by much. And if you miss payments or exceed your limit, your credit card interest rates can go up.