Consolidating a loan
Whatever method you choose in consolidating your debt needs to include an interest rate that is half, or less, of that. Anything below 660 is going to mean a high rate, though maybe not as high as the rate for credit cards.So how do you get that down to a single-digit interest rate that helps you pay off debt faster? Let’s say you need a ,000 debt consolidation loan. The steps to get a better credit score are manageable, but require discipline.One way to resolve a defaulted loan is to combine your existing federal student loans into a new Direct Consolidation Loan from the US Department of Education (ED).Even if you have only one defaulted student loan, you may obtain a Direct Consolidation Loan to resolve the default.Note: Even though after consolidation you will have one loan, if you are consolidating subsidized and unsubsidized loans, they will be tracked separately.If you decide to return to school or enter into another deferment period, the subsidized portion of your consolidation loan retains the benefit of having the interest paid for you during that time.
If you have multiple outstanding credit card bills, for example, a debt consolidation loan could be used to pay off those bills, leaving you with only one monthly payment.
Loans through Avant give you the flexibility to pay off your debt with simple monthly payments over the course of 24 to 60 months** We give you the flexibility to personalize your loan and choose the best option for your needs.
Avoid the hassle of managing multiple credit card bills every month.
The only exception to this rule is a Federal Perkins Loans.
If you consolidate Perkins Loans, they are included in the unsubsidized portion of the Consolidation Loan and do not retain their interest benefits.