Debt consolidation is a common practice for people suffering from high amounts of credit card debt. It allows individuals to pool their debts, making a single payment, and receive a lower interest rate.
Common forms of debt consolidation include second mortgages and moving the debt to a credit card. There is an option that people find really interesting, peer to peer lending or crowdlending. You just need to find the best investment platforms.
Peer to peer lending is a form of microfinance or small personal loans, not from a bank, but the lender. Usually, a loan is aided by a bank loan which is responsible for various aspects of the loan process.
These include a credit check of the borrower, the lender and the borrower connection, the submission of a note or loan agreement and payment handling. Every bank that facilitates peer to peer loans is a non-traditional bank based primarily on the internet.
There is less of a hassle to deal with the major banks. A personal loan is not a common thing for most banks and people often can be rejected based on several different factors. This leaves the individual to find another bank for a loan.
The process starts again and has the possibility to take a few tries before getting a loan. The overall process takes with each trying to have to fill out the necessary form and wait for approval time.