Consider Debt Consolidation
Consolidating multiple credit accounts into one new loan with a single payment may help you lower your overall monthly expenses, increase your cash flow, and eliminate the stress of multiple monthly payments.
- First, make a list of your loan and credit card balances, with the interest rate and monthly payment for each.
- Consider your consolidation options – both secured and unsecured:
• Unsecured loans allow you to 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 allow you to borrow against the value in your savings account to consolidate multiple debts into a single loan with an interest rate that may be lower than your existing unsecured rates.
CD/Savings Secured Loan
• Private student loans allow you to 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.
Wells Fargo Private Consolidation loan
- No matter which option you choose the process of consolidation works in much the same way. Instead of multiple debt payments
each month, you only have one payment to worry about. Your goal in consolidation should always be to get the lowest interest rate possible. When you find the option that’s right for you, you can use the proceeds to pay off your outstanding balances. Then use any extra cash you save each month to get closer to your savings goals.
When you're choosing the term of a loan, consider the total amount of interest and fees you’ll pay. A loan with a longer term may have a lower monthly payment, but it can also significantly increase how much you pay over the life of the loan.
View the Total Cost of Borrowing
Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner. By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.
TheWells Fargo Private Consolidation SM student loan is subject to completion of a loan application/consumer credit agreement, verification of application information, credit qualification, and a benefit to borrower determination. Federal student loans cannot be consolidated into aWells Fargo Private Consolidationstudent loan.
Category: Bank loan