Whether you need to lower your monthly payments, or you’re looking for a way to pay off debt faster, you may want to consider consolidating debt. Loan consolidation can help you simplify the repayment process by transferring multiple debts into a single new loan. You may even qualify for lower rates or new terms, which could reduce your monthly payments.
Debt consolidation loans
At Wells Fargo, you may qualify for several different consolidation options:
Unsecured loans and credit cards
Use your good credit to consolidate multiple debts into a single loan with one monthly payment. You may even qualify for an overall lower interest rate than your existing interest rates.
Secured loans and lines
Borrow against the value in your car or savings account to consolidate multiple debts into a single loan with an interest rate that may be lower than your existing unsecured rates.
Private student loans
Consolidate multiple private student loans into one. At Wells Fargo, you may consolidate jointly with your spouse, and parents may also combine private student loans for multiple children.
Consider borrowing costs
What to consider before you apply
To find out whether you’re ready to take on new debt, measure your overall financial situation against the criteria that lenders use when they review your application.
The relationship of rate, payment, and term
Loan interest rates, payments, and terms are closely related. Changing or adjusting one of these factors will result in changes to the others.
For example, with a $10,000 loan at 8%, and a payment term of 2 years, you would pay $452 a month. But if you changed the term to 5 years, you’d lower your monthly payment to $203 per month.