What is a Debt Consolidation Loan?
A debt consolidation loan is a type of personal loan that combines multiple debts into just a single monthly payment. Many people consider debt consolidation when they are juggling numerous debts with high and varying interest rates.
Tower Loan can help you find the best debt consolidation loans to simplify your repayment process and potentially save money over time with a lower interest rate. When you consolidate debt, you can also reduce your payoff timeline and experience less financial stress so that you can stay on track with your financial goals.
How to Apply and Start Consolidating Debt
You can apply for a debt consolidation loan from Tower Loan in a few ways.
- Apply Online
- Complete your debt consolidation loan application entirely online by clicking here! For those that qualify, you may be able to even sign your documents electronically without ever having to step foot in an office!
- Apply Over the Phone or In Person
- We also take pride in offering top notch customer service at our physical branches near you. With over 250+ locations, you can use the branch locator below to find the address or phone number for the branch nearest you and apply either in person or over the phone!
Debt Consolidation Loan Application Requirements
- Applicants must be at least 18 years of age (19 in the state of Alabama)
- Must reside in one of the areas Tower Loan services
- Must be employed or have a regular source of income
The Benefits of Debt Consolidation Loans
Could a personal loan for debt consolidation be the right financial move to help you achieve greater control and stability? Consider these debt consolidation benefits to make an informed decision.
Simplify Your Budget
Instead of having to keep track of numerous accounts, payment amounts, and due dates, you’ll have just a single, fixed monthly payment to manage with a debt consolidation loan.
Reduce Your Monthly Bills
Many people who consolidate credit card debt see their monthly bills become more affordable. This is because they secure a lower interest rate or extend their repayment term with a credit card debt consolidation loan.
Save Money on Interest
High-interest credit card debts quickly add up. But with a personal loan for debt consolidation, you could get a lower interest rate and reduce the total interest amount you’ll pay over time.
Improve Your Credit Score
When managed responsibly, a debt consolidation loan could help you improve your credit score when you make on-time payments and prove to lenders that you are a reliable borrower.
Ready to apply for a debt consolidation loan?
Have questions?
Contact your nearest Tower Loan location today.
Our dedicated team members are here to serve and help every customer in a professional manner.
How Does Debt Consolidation Work?
Debt consolidation works by combining several of your existing debts – such as credit cards, medical bills, and other loans – and combining them into one, brand-new loan. When you take out a personal loan for debt consolidation from Tower Loan, you’ll pay just one fixed monthly payment to us rather than having to juggle multiple debts with varying due dates and different interest rates.
This financial strategy can make monthly budgeting more manageable and provide you with a clear timeline to pay off your debt. In many cases, the best debt consolidation loans also help you lower the total amount of interest you’ll pay on your debts.
When you consolidate credit card debt and other types of debt with a debt consolidation loan, you can also gain financial freedom with streamlined management and without the stress of keeping up with multiple bills.
When Should You Consider Getting a Debt Consolidation Loan?
It may be time to reach out to debt consolidation lenders if one or the following apply to your financial situation:
- You are juggling multiple credit card payments with high interest rates.
- You are mostly paying interest on debts and making little progress on the balances.
- You would like to make just one consistent monthly payment instead of keeping up with many due dates.
- You are looking for a structured plan to become debt-free faster.
- You want to free up room in your budget and reduce your financial stress.
Debt Consolidation FAQs
Is debt consolidation a good idea? Here are answers to commonly asked questions that Tower Loan customers ask.
What’s the difference between debt consolidation vs. debt relief?
Debt consolidation involves combining multiple debts into a single new loan that comes with a fixed (often lower) interest rate and a single monthly payment to manage. With a personal loan for debt consolidation, you must still pay back the full amount you owe. However, you can do it in a more straightforward and structured way to reduce your overall interest expenditure and ease financial stress.
On the other hand, debt relief typically refers to a program you pursue to reduce or settle your debt for less than the full amount you owe. Debt settlements and bankruptcy are examples of debt relief. Although debt relief programs can reduce the balances you owe, they often come with serious financial repercussions, long-term consequences, and damage to your credit score.
How does debt consolidation impact my credit?
When you apply for a debt consolidation loan, you may see a small and temporary impact on your credit score. However, you can boost your score back up by making loan payments on time.
Can debt consolidation get me out of debt sooner?
A credit card debt consolidation loan can help you have a clearer vision of how many payments you still need to make to resolve your debt. Unlike revolving debt, such as credit cards with changing balances due, debt consolidation loans can help you break the cycle of debt.
How do I consolidate credit card debt?
Tower Loan is a debt consolidation lender that can review your application for a debt consolidation loan and assess the various bills and accounts you wish to pay off. We offer a quick and easy application process, along with helpful customer service representatives to assist you.
Can I make extra payments to pay off my loan early?
Yes, you are welcome to pay off a Tower Loan debt consolidation loan early without penalties. By paying off your loan early, you can save money on the overall interest owed.
Why Choose Tower Loan?
Tower Loan has been helping our customers since 1936. Since all of our loans have equal installment payments, there’s no worry with getting lost in revolving debt. Tower Loan has over 260 locations to serve you locally. We take pride in servicing our customers with the best customer service around. We listen carefully to your needs to make sure we take the worry out of obtaining credit. You can count on Tower Loan to continue our customer services just as the date we first met. We specialize in taking care of all of your financial needs.
What to Expect With Tower Loan?
Our interest rates & APR vary based on a variety of factors. Once approved, your debt consolidation loan specialist will go over this process along with term options that best fit your lifestyle. Here is what you can expect:
1) Complete an application. This can be done online by clicking here or you can call or visit one of our local branches near you. We’ll request some of your personal, financial, and employment information to provide an immediate decision on your loan application.
2) Verify your information. If you completed your application online, you may be able to answer a few identity questions to do this. Otherwise, you’ll be visiting the closest office near you to have a loan specialist verify your identity, income, and collateral (if applicable) as well as discuss your loan options.
3) Sign and receive your funds. For the online loans, after choosing your term options, you can sign your documents electronically, then expect the funds to be deposited into the account you’ve provided. If in the office, you’ll review and sign your loan documents there, then will be provided a check with the proceeds from your loan. Then, you’ll be all set!