3 Special Rate Advance: The special advance rate is variable for twelve (12) months and is applicable only for an initial advance of $25,000 or more taken under the variable rate option at the closing of the line of credit, to be disbursed immediately upon expiration of any applicable rescission period, and is valid for applications received by 4/30/2019 and that close by 6/14/2019. An initial advance of $25,000 or more taken at closing under this option shall accrue interest at the Special Rate for a period of twelve (12) months from the date of disbursement of the advance. Special Rate Advance may not be used to pay off or pay down any SunTrust debt. Advances under this option subsequent to the Special Rate Advance, as well as any promotional balance remaining upon expiration of the Special Rate, shall accrue interest at the standard rate(s) and margin(s) as described below and in your Equity Line Agreement. Offer subject to change without notice at any time.
A debt management plan is offered by a credit counseling agency. It’s similar to debt consolidation in that you’re making one payment, but instead of paying a creditor directly, you pay the agency who disburses payments across your creditors. The agency will try to work with your creditors in an attempt to secure more favorable terms. Payments are usually made on a monthly basis for three to five years.

Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 303 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, e-mail us at hello@earnest.com, or call 888-601-2801 for more information on our personal loan product.


You may have heard that some creditors are willing to settle your debt for pennies on the dollar. In reality, credit card debt forgiveness is rare and tricky, and can be very costly. You have to first be in serious arrears. Then you have to convince your creditors that you don’t have the means to repay your debt and your situation isn’t likely to change. If you manage to work out a debt settlement agreement, the creditor is all but guaranteed to report your forgiven debt to the IRS. The forgiven debt is considered taxable income.
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.
Check whether you’re applying for a secured or an unsecured loan: If it’s a secured loan (backed by an asset such as your car) and you fail to make your payments, the lender can repossess the item. Unsecured loans, on the other hand, aren’t backed by this kind of collateral, but often come with higher interest rates. Make sure you consider the trade-offs before you apply for the loan.
The debt settlement process involves hard-core, long term debt collection attempts by your creditors, and serious credit score damage that will last for many years. Debt consolidation companies like National Debt Relief and Freedom Debt Relief offer to help you through the process for a fee (eating into your savings). They will instruct you to stop paying your bills, which leaves you open to lawsuits by your creditors.
Barring any unforeseen circumstances, such as borrower default or payment extensions/modifications, for example: 3-year payment plans may have a minimum repayment period of zero months and a maximum of 36 months and 5-year payment plans may have a minimum repayment period of zero months and a maximum of 60 months. Borrowers should refer to their loan agreement for specific terms and conditions. A loan example: a 5–year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3–year $5,000 loan with 5.99% APR has 36 scheduled monthly payments of $150.57. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank’s policies.
This depends on whether you make on-time payments. If you're looking to consolidate your debt, it's possibly because you're having trouble keeping up with multiple monthly payments from various accounts. Debt consolidation will help make these monthly payments easier, which may help you pay on time. However, just like with any other type of loan, late or missed payments on your debt consolidation loan could result in a credit score drop.
To “settle your debts” means to offer your creditors a one-time lump sum payment to pay off part of what you owe them. In return, they will write off what you aren’t able to pay back. It is important to speak with one of our Debt Settlement Specialists to find out if signing a debt settlement agreement with your creditors is a good option for you. There are long term consequences to your credit rating when you have debt written off against you. Get all the facts before you sign. To find out more of the pros and cons of consolidating debt using debt settlement services, click here.
We searched through MagnifyMoney’s debt consolidation loan marketplace to identify the best lenders for you depending on whether you have excellent (700 and above), good (640-699), average (600-639) or poor (below 600) credit. To compare lenders evenly across the board, we assumed that you’re looking for a $10,000 loan and that you have a college degree. For each credit category, we picked the top two lenders who had the lowest APRs.
Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Often times, after debt consolidation, consumers will find themselves accumulating credit card debt again very quickly. If they do not change their spending habits, the amount of monthly cash flow created with debt consolidation could dwindle quickly. Those who have never learned to budget and manage their money will find that very little will change for them with a debt consolidation loan. They will likely continue to overrun their monthly income and rely on credit cards to make up the gap.
When you combine all your debts into just one loan, you’ll only have a single loan payment to contend with each month, instead of multiple bills due to several different creditors. A debt consolidation loan should, therefore, make it much less likely that you’ll have a late payment, or miss one altogether, as you’ll only have one payment to make each month.
This isn't good news for the millions of American consumers who struggle with mounting debts and less-than-perfect credit scores. Since carrying long-term debts increases your chances of missing a payment, running up excessive balances or damaging your credit in either ways, debt consolidation lenders don't have a very big pool of potential applicants at their disposal. Unless you've been fortunate enough to maintain a stellar credit score during your debt struggles, you might have to look elsewhere for help.
If you have high-interest credit card balances on multiple accounts, just making those monthly payments can be so tough that you can’t afford the things you really need or want — much less save any money. It may also stress you out. In this situation, debt consolidation might be a smart decision. But before you get started, let’s dig in to understand how debt consolidation can affect your credit scores.
† The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%-29.99%, which may include an origination fee from 0.99%–5.99% that is deducted from loan proceeds. Any origination fee on a loan term 5-years or longer will be at least 4.99%. The APR offered will depend on your credit score, income, debt payment obligations, loan amount, loan term, credit usage history and other factors, and therefore may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.
Payday loans. Payday loans are typically short-term loans for $500 or less due on your next payday. Payday loans usually have extremely high interest rates, often a $15 per $100 fee that equates to an APR of almost 400 percent. They are exceptionally risky, high-cost loans that typically have interest rates far higher than existing credit card debt and terms that are too short to help consolidate and pay off debt.
Unsecured debt consolidation loans. Unsecured debt consolidation loans don’t require collateral, and they usually have easier approval requirements than secured debt consolidation loans. Unsecured debt consolidation loans can have income requirements as low as $24,000 annually, debt-to-income ratios of up to 50 percent and minimum FICO credit scores as low as 600.
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