If you want to lower your monthly payment, lower your interest rate or pay down your debt, perhaps it’s time to consider debt consolidation. Consolidation not only simplifies the process of paying your debt, but it can also help reduce your debt over time. Determining the right consolidation option will depend on the type of debt you have and how much of it you’ve accumulated.
Debt consolidation options
Consolidating your debts into one loan simply transfers your multiple debts into one loan. So instead of making multiple payments to multiple creditors, you can consolidate your debt into one payment. When applying for a loan to consolidate your debts at Wells Fargo, you’ll first outline the debts you want to consolidate. If you’re approved, your Wells Fargo loan can be used to help repay your creditors.
Here are a few options Wells Fargo provides that can help you consolidate your debt:
Credit card balance transfer
If you have mostly credit card debt, transferring your card balances to a credit card with a lower interest rate may make the most sense for you. By rolling other higher-interest debt into a lower-interest credit card, you not only can lower your overall monthly payments, but you can cut down on multiple credit card debt. Consider transferring your balance by applying for a Wells Fargo credit card, which offers a low-interest rate and the potential to earn cash back.
Student loan consolidation
Similar to a standard consolidation loan, a student consolidation loan pays off student loan debt. With a Wells Fargo Private Student Loan Consolidation, you can consolidate your private student loans with up to a 20-year repayment term and competitive rates.
Free and clear auto financing
Similar to a home equity loan, an auto debt consolidation loan allows you to combine your debts onto one larger loan by leveraging the lien-free value of your car. In some cases borrowers may receive additional cash if the lender approves a loan for more than the vehicle’s current value.
Consolidation can help ease the load of managing your debt. By considering all your options, you can determine if it’s the right path for you.