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Everything You Need to Know About Debt Consolidation Loans

usalliance-consolidate-debtNow that 2022 is rolling, many people are faced with the fact that they collected a significant amount of debt this past holiday season. If you’re looking at debt right now you are not alone; 1 in 3 Americans racked up more than $1,200 of debt this holiday season according to CNBC.

Paying off your debt doesn’t have to be stressful. If you have multiple bills to pay off month over month, it may be time to re-evaluate your financial path by combining all your bills into one consolidated loan. Below we outline 4 reasons why USALLIANCE’s Debt Consolidation Loan may be the perfect fit for you.

1. One Payment, Interest Rate, and Due Date

With USALLIANCE’S Debt Consolidation Loan, you can combine all of your outstanding debt into one singular monthly payment. This is done by opening a debt consolidation loan, using the funds from your loan to pay off all of your outstanding balances. From there, you’ll only need to make one monthly payment to your loan servicer, rather than pay multiple bills across a multitude of platforms. This reduces the number of payments, due dates, and interest rates that you have to remember month to month. Additionally, by choosing to switch to a debt consolidating loan, you give yourself the chance to potentially save thousands of dollars in interest over the lifetime of the loan.

2. Can improve your credit

While consolidating your debt does not automatically result in an improved credit score, one single monthly payment reduces your chances of making a late payment, or missing a payment entirely, which in turn will improve your credit.

3. Easy to get approved

USALLIANCE allows you to see if you are pre-qualified for a debt consolidation loan instantly online! After you pre-qualify and officially apply for your loan, we will run a credit report to help us better understand your financial needs, contact you to request any additional information, approve your loan, and walk you through the entire payment process!

4. Great rates and terms

You can customize your debt consolidation loan to suit your needs. Simply select the amount you’d like to borrow and your desired term length. In addition, as a not-for-profit, we do not pay shareholders like big banks. Instead, we recirculate funds back to our members in the form of better interest rates. Our Debt Consolidation Loan Rates are listed under Personal Loans.

5. Not Ready for a Debt Consolidation Loan?

Here are a few other options to consider.

Personal Loan

Unlike a debt consolidation loan which is used specifically to pay off debt, personal loans can be used to fund anything from a family vacation to managing unanticipated bills. A personal loan is paid back through fixed monthly payments with no collateral to qualify. Additionally, with USALLIANCE’s personal loan there is no pre-payment penalty, which means if you can pay off your loan earlier than expected you are encouraged to do so, and your credit score will not suffer.

Credit Builder Loan

A credit builder loan is designed to help people establish credit or boost a low credit score. The loan works by holding the amount you borrow, anywhere between $500-$2,000, in your USALLIANCE account while you make small payments for anywhere between 12 and 24 months; you receive your funds when the loan is completely paid off which in turn helps raise your credit score.

Signature line of credit

A signature line of credit is a revolving line of credit that is accessible whenever you need it and can be used for any purpose. A revolving line of credit means that your funds will automatically be advanced from your available line of credit whenever you need them. One way that a signature line of credit is commonly used is in the case of an overdraft; an overdraft line of credit would provide you with peace of mind by automatically transferring funds from your line of credit to your checking account as well as covering expenditures that an available balance could not.

Prequalify for a Debt Consolidation Loan

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