How to Pay Off Debt: These 4 Sites Could Help You Pay It Down Faster
Whether your have credit card debt, student loan debt or medical debt, we found four companies want to help you debt.
Here’s how: Each of these companies on this list will match you with a low-interest loan. Use that loan to pay off your credit cards, student loans or medical bills — whatever it is you need.
Once you’ve paid your debt off, you’re left with just one bill to pay each month. And because the interest rate is so much better, there’s a good chance you’ll be able to get out of debt faster.
Sound complicated? It’s really not. These companies will walk you through the process. All you have to do to start is get a free quote. It’s super quick (shouldn’t take more than five minutes!), and it won’t hurt your credit score.
Your ultimate goal? Find the lowest possible interest rate.
1. Fiona: Pay Off up to $100K Worth of Debt by Tomorrow
The more money your owe on your credit card, the more money you’re going to lose in interest. Yeah, basically your credit card company is getting rich off your bad situation.
But a website called Fiona could help you pay it all off tomorrow.
With Fiona, you can borrow up to $100,000 and spend up to seven years paying it back. That’s more money and time than you can get from any of these other three lending marketplaces. You’ll need a credit score of at least 620. Rates start at 3.84%.
Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.
2. Upstart: A Lending Alternative Ideal For Recent Grads
Founded by ex-Googlers, Upstart is a lending platform that’s striving to change the personal loan space. Rather than solely focusing on your credit score to determine your borrowing power, it looks at other factors, too, including your education and employment history.
That’s why Upstart tends to be especially helpful for recent grads, who have a short credit history and a mound of debt.
You can borrow up to $50,000 from Upstart with three-, five- and seven-year loans, though note you’ll need a credit score of 620 or higher. It takes minutes to see if you qualify.
When we connected with Nick in 2018, he was carrying around more than $26,000 in credit card debt. He owed about $800 a month — but a lot of that was going toward interest, not actually chipping away at his debt.
He felt like his wheels were spinning, until he read about Upstart. Within two hours of applying for his Upstart loan, Nick received the money and paid off his credit cards. “It was such a relief — like a giant weight had been lifted off my shoulders,” he said.
This new five-year loan meant Nick went from paying $800 a month to $667 a month, thanks to the difference in interest. Plus, he’ll be debt free a lot sooner.
3. Credible: Finally Nix Your Student Loan Debt
Credible is perfect if your goal is to get rid of student loan debt.
With Credible, you search loan offers from up to 10 of the top lenders, making it easy to compare your rates. You can borrow anywhere from $1,000 to $50,000 with fixed rates starting at 4.40%.
Note: The interest rates you’re offered will depend on your individual credit profile; Credible tends to be best for borrowers who have good credit scores and just want to simplify their debt.
Credible helped Jammie Proctor, an engineer and recent college graduate, save an estimated $7,000 on his student loans — he owed more than $50,000 when he graduated. He told us he’d be debt-free in just seven years.
“I was very impressed that they did the heavy lifting for me,” he says. “I didn’t have to go out and seek all of these loan providers to do my refinancing. I could just go through, look at all the offers and figure out which one was most suitable for me.”
Enter your info at Credible to find out what your new interest rate could be. It takes three minutes.
4. Figure: An Even Lower Interest Option For Homeowners
California couple Wilmer and Kimberly Swerdfeger had accumulated $20,000 in credit card debt — a result of unexpected home repairs and an emergency eye surgery.
Between paying high interest rates and juggling multiple bills, Wilmer needed a way out. That’s when he considered tapping into his home’s equity — the money he’d paid toward his mortgage — with Figure, an online lender.
Home equity lines of credit can you help you get out of debt faster by offering better rates than credit cards and personal loans, because your home backs the loan.
Figure approved the couple for a five-year line of credit with an APR of 5.75% — that was way better than the 21.99% credit card interest he faced. Oh, and his funds were in his account the next day — so he could immediately pay off his credit cards.
It only takes five minutes to check your rate with Figure. If you like what you see and your application is approved, Figure will initiate funding within five days.
Figure is available in the following states: AL, AR, AZ, CA, CO, CT, FL, GA, ID, IL, IN, KS, LA, MA, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SD, TN, WA, WI, WY. Terms and conditions apply. Visit figure.com for further information.
Final Words of Advice
Getting your quotes from each of these platforms takes five minutes, tops, so you can easily try out more than one. You’re just looking for the lowest rates (ideally fixed) and the best term to suite your budget.
And like we said, each conducts a soft inquiry on your credit, meaning it won’t affect your credit score at all.
Once you actually apply for a loan, the lender will perform a hard inquiry on your credit, which will ding your credit temporarily.
The good news? You’re that much closer to paying off your debt!