Best Debt Consolidation Loans in Louisiana of 2024

Ask Yourself the Important Questions

It’s important to consider your current financial standing to see if a debt consolidation loan is the right option for you. Asking yourself the following questions can help you make a smarter financial decision:

• How much funding do you need? Assessing how much funding you need can help you decide if a debt consolidation loan is the best option for you. Lenders also offer different minimum and maximum loan amounts, so assessing how much money you need can help narrow down your search.
• What’s your credit score? To assess your capacity to repay the loan, lenders look at your credit score. If your credit score is currently low, consider improving it before you apply for a debt consolidation loan. That way, you’ll receive the lowest possible interest rate.
• Can you afford the monthly payments? You should ensure that you have enough income to make the monthly payments, including interest. If you don’t have a stable monthly income, consider an alternative funding source.
• Do you have existing debts? It’s important to consider the amount and type of existing debt that you have. Some lenders won’t allow you to use a debt consolidation loan for secondary education. Thus, if you’re hoping to use your debt consolidation loan for this purpose, you’ll have to find a lender that meets your specific needs.
• Is your debt manageable through other means? A debt consolidation loan may not be the best option for you if the interest rate you receive isn’t lower than your current loan payments.

Do Your Research

MoneyGeek created this guide to provide important information on debt consolidation loans in Louisiana. However, our recommendations may not cover your specific needs. It’s best to explore other options in the state to find the best lending company for you.

Make sure to conduct your own research and look into what each lender has to offer. Gather information about their loan amounts, interest rates, repayment terms and fees. Also, find out if the lender imposes restrictions on fund usage or conducts hard credit checks. Knowing this information can help you narrow down your options and make it easier for you to choose a debt consolidation loan lender.

Wait

It may be tempting to immediately choose a lender once you have all the necessary information you need. However, your choice may be a result of confirmation or recency bias. We advise that you wait a day or two before finalizing your decision. A debt consolidation loan is a long-term commitment — up to seven years — so we advise that you take the time to consider if it’s the best choice for you.

Read the Fine Print

It’s common to miss certain details while researching debt consolidation loan lenders. Once you’ve chosen a lending company, make sure to read the fine print for all its fees and charges. These include origination fees, prepayment penalties and late fees. Note that reviewing and understanding the fine print can help you save money in the long run.

Apply

Once you’ve read the fine print and you’re confident with your chosen lender, there’s only one thing left to do: submit your loan application! Lenders typically require identification, address verification and proof of income during the application process. To save time, you should gather all this information beforehand. With most lenders, you can easily apply online or over the phone, but some may require that you apply in person at a physical branch.