Online Debt Consolidation: DMPs, Loans & Consolidation Companies

Online Debt Consolidation

Set up an online debt consolidation loan alternative: without meeting a loan officer. In fact, you can get debt consolidation online without even taking out a loan. Our software can pull your credit report, list your debts and recommend a program that offers you lower monthly payments, one consolidated payment and a way out of debt in 3 to 5 years.

Online Debt Consolidation | Online Debt Management Program

Why work with a Non Profit for Online Debt Consolidation?

Nonprofit credit counseling companies deliver high quality counseling and debt solutions that are best-suited to your situation. InCharge is a 501(c)(3) nonprofit organization. Our mission is to help with consolidating debt and our advice is based on the details of your personal situation. As a nonprofit, we provide help with debt regardless of your ability to pay for counseling and other services.

Many for-profit financial institutions are criticized for offering products, services and advice that benefit the firm’s bottom line more than the client. That’s not the case for nonprofits.

Part of our responsibility as a nonprofit is to operate in the customer’s best interest and not be driven by a sales commission or profit motive.

What is Nonprofit Debt Consolidation?

Nonprofit debt consolidation, also known as a debt management program, is a debt relief solution that lowers your monthly debt payment by reducing the interest rate you pay on it. This program may be recommended to you after completing a credit counseling session. You can start an online counseling session or call the number on the right to speak with a certified credit counselor. During the session, counselors will look at your income and expenses and help you identify the root cause of your financial problems. They also help you build an affordable budget that gives you an opportunity to dedicate some funds to a savings program.

Here are the features of a debt management program:

  • Counselors work with credit card companies to consolidate bills into one affordable monthly payment by reducing interest rates.
  • Credit score is not a factor in qualifying for the program.
  • Offers online debt management tools.
  • Eliminates calls from collection agencies.
  • Offers a financial plan to eliminate credit card debt in 3-5 years.

We provide educational tools and referrals to governmental and nonprofit organizations that can help you manage your money.

Consolidate Credit Card Bills with an Online Debt Management Program

Are you paying 5, 10 or more credit card bills every month? One of the most popular features of a debt management plan is that it can consolidate credit card bills into one monthly payment. This feature makes it easy to pay your bills on time, avoiding missed payments and late fees.

With InCharge, you can go through credit counseling online, and find out if you qualify for a debt management program. Our step-by-step software helps you come up with a budget, pulls your credit report to list the total amount you owe, and formulates a plan that may help you lower your monthly bill payments and consolidate debt into one easy to manage payment. By working with our online program, you can take your time, review your accounts and customize your plan. If you have questions or prefer to work with a credit counselor, you can also call and get help that way.

If you do decide to join our debt management program, you can do so online and manage your account with our many web and mobile phone tools, including the I’m InCharge Mobile App.

Online Debt Consolidation Loans

Here’s a news break: not everyone enjoys sitting across the table from a banker and spilling their financial guts. Enter the internet, the latest marketplace for debt consolidation loans. Did you know you can get a debt consolidation loan online, without ever having to speak to a person?

Here is a typical debt problem for many consumers and some alternatives she could consider to effectively deal with it.

Susan is looking for an online debt consolidation loan to consolidate her 12 credit cards into one monthly payment, with a lower average interest rate. She doesn’t have time to meet with a loan officer and would like to handle the application, document submission and approval process online. The good news is, in the age of the Internet, there are a number of places that Susan can turn for online debt consolidation loan.

  • InCharge Debt Solutions: The debt management plan offered by InCharge is not a loan, but it does the same job as other online competitors: pay off debt in a 3-5 year period without charging interest. In fact, InCharge’s program actually reduces the interest rate you pay on your debt. The best thing about it? Your credit score isn’t a factor and you can enroll online without ever speaking to a counselor.
  • Lending Club: Lending Club is a peer-to-peer lender. Borrowers fill out a profile and apply for a debt consolidation loan online. Lending Club uses a proprietary formula to score borrowers and tier interest rates, including credit score. Interest rates range from 5.99% to 35% and could be less than half the interest rate paid on credit cards.
  • Prosper: Prosper is another online debt consolidation loan option. Maximum loan amounts are $35,000, average interest rates range between 5.99% and 36% and a “closing fee” paid to Prosper of approximately 1% of the loan.
  • Avant: Avant targets customers with credit scores under 700. The company directly funds each loan and their interest rates are a little higher than the competition – somewhere between 10% and 36% — but there is no origination fee. Terms of the loan vary from two to five years.
  • Upstart: Another peer-to-peer lender, but with a little bit of a twist, Upstart, is looking at young borrowers who might not have much of a credit history. Their computer model takes into account your education level, what your college major was and what kind of job history you have. Loans are between $3,000 and $25,000.
  • Light Stream: This company wants to do business with people who already are good credit risks. They offer phenomenal rates – as low as 5.95% with auto pay – and you can borrow from $5,000 to $100,000. Loan terms are from two to seven years with interest rates in the summer of 2019 ranging from 5.96% to just under 17%.

Choosing an Online Debt Consolidation Company To Apply To

Gone are the days when managing your financial life meant sitting across the desk from a loan officer at a bank. Reputable companies like InCharge offer a full suite of online tools designed to offer you personalized debt relief online. Here are some guidelines on how to choose an online company for help with consolidating debt.

The goal of any debt consolidation loan is to simplify payments, while eliminating debt. All the companies mentioned above can do that.

Your decision on which one to choose should include research that addresses these areas:

Value: It’s hard to eliminate debt if you’re paying a lot of interest and fees on it every month. Look for a company that can a) lower the interest rate you pay; b) lower your monthly payment; and c) eliminate your debt in 3-5 years. Meeting those three conditions should be the starting point in making your decision.

Customer service: If you have a question about debt, is there a way to get it answered quickly and easily? The company you choose should be looking out for you first. By law, nonprofit agencies must consider their customers’ needs first, or they can lose their nonprofit status. The same laws do not apply to for-profit companies that typically worry about their bottom line first and your problems second.

Trust: When you are struggling with debt obligations, it’s easy to get desperate and be exploited by companies making promises they can’t keep. Check the track record for any company you’re considering. How long have they been in business? What are their customers saying about them? Are their credit counselors accredited? Make them earn your trust, before you commit to doing business with them.

Transparency: You should be able to go to any company’s website and answer any concerns you have about the value the business provides, the commitment it has to customer service and the track record that says you can trust them. Things like who is eligible; what kind of programs are offered; what are the costs for the service; where is the company located; what are the hours of operation; how can you reach customer service; all should be easily accessible on the company website.

Reviews: Customers – current and former – are a reliable resource for reviewing companies you are considering, especially as it regards their truthfulness about fees and other costs associated with the service. Most companies belong to the Better Business Bureau, which provides a source for reviews, but it makes sense to search online for other reports on a company’s business activities. Companies that belong to national associations also may get mentions, positive and negative, that are worth considering. Typically, their employees must be accredited by the national organization before they can start as credit counselors.

Do your research. If a company hits all five targets, your decision should be easy.

What Online Debt Management Program Tools Does InCharge Offer?

People are used to managing their bank accounts, credit cards, mortgages and investment portfolios online. Stamps, checks and envelopes are fast becoming relics. InCharge recognizes that people want to interact with their debt management program online. That is why we developed tools to help you do everything from monitor your creditor proposals to check your balances and change your payment due date. When you join InCharge’s program, you’ll have access to our online tools, making your debt payoff journey as smooth as possible.

Benefits of Online Debt Consolidation

Applying for debt consolidation loans online is faster, easier and more efficient than trying to get through the process over the phone or in-person with a credit counselor. You can start and stop the online process at your convenience. No need to make an appointment or come back later for a follow up because you didn’t have up-to-date information.

Online debt consolidation loan applications ask the same questions a credit counselor would ask, including offering you the option to pull your credit report so that you have the most accurate information on your debts. This is considered a “soft pull” so there is no impact on your credit score.

You will see a copy online of the actual agreement that includes the costs for the initial enrollment fee and monthly service fee. All terms and conditions are spelled out in the agreement, which can be printed off your computer and remains part of your online account for viewing at any time.

While online, you can compare services with other companies and see how customers have rated those companies and how fees vary between companies.

How to Avoid Scams

One of the biggest fears of doing business online is that you will get scammed. There are some red-flag warnings that will help you be more confident about finding the best online debt consolidation loans and programs.

The first is when a company asks for an upfront fee to get started. The Federal Trade Commission prohibits debt-relief companies from collecting fees in advance. It also requires debt-relief companies to make specific disclosures on fees and prohibits them from misrepresenting services.

It is wise to research a company’s background. If they are a nonprofit, they should belong to a national organization like the National Foundation for Credit Counseling, which trains and certifies credit counselors.

Also, keep as much personal information away from a company as you can, until you are ready to sign an agreement. They don’t need your social security number, street address, etc… to sell you on their program.

If a company is too aggressive in trying to get your business – they offer guarantees or try and pressure you to sign on today rather than comparing them with other companies – you probably should pass.