Are you feeling stressed by high-interest credit card balances, loans, or other debt? Do you have multiple monthly payments have your finances feeling strained?
If this is where you find yourself, then a debt consolidation loan may offer some relief. This helps you to roll multiple debts into one new loan, usually with a lower interest rate. This lets you save on interest while only dealing with a single payment.
One lender offering consolidation loans is Happy Money. In this blog post, we’ll explore what Happy Money is, how their debt consolidation loans work, and if they are the right choice for your debt relief needs.
What is Happy Money?
This firm was said to be found in 2009 and based in Irvine, California. Happy Money operates as an online lender. They partner with banks to provide personal loans to borrowers, including debt consolidation loans.
Here are a few key things to know about Happy Money:
- They market themselves as a “happy” lender focused on providing excellent customer service and helping borrowers get out of debt.
- Happy Money is not a bank itself – they work with banks to fund their loans.
- They offer fixed rate, fixed term personal loans with no prepayment penalties. Loan amounts range from $5,000 to $40,000.
- Loan terms are offered from 24 to 60 months (2 to 5 years).
- According to their website, rates range from 5.99% – 35.99% APR depending on your creditworthiness.
Essentially, Happy Money aims to be a helpful lender that can provide loans to consolidate debt at competitive rates.
How Does a Happy Money Debt Consolidation Loan Work?
A Happy Money personal loan for debt consolidation allows you to roll multiple high-interest debts into one new consolidated loan. Here are some key points:
- You would apply for a Happy Money personal loan for a specific amount needed to pay off your existing accounts.
- If approved, Happy Money pays off your credit cards, loans, medical bills or other debt directly with the loan proceeds.
- This leaves you with just one fixed monthly bill – your new lower interest loan payment to Happy Money.
- Depending on the interest rate reduction, this can save you substantially on interest fees over time.
- Loan terms of 24-60 months give you a set repayment plan to becoming debt free.
So in short, Happy Money handles paying off your various accounts and combines everything into one new loan with them. This streamlines your payments into one lower monthly bill.
What Are the Benefits of a Happy Money Consolidation Loan?
There are several potential benefits that make a Happy Money debt consolidation loan appealing:
- You get a much lower interest rate than high-interest credit cards and other debt. This saves you significantly on interest over time.
- Your monthly bill stays the same over the loan’s set repayment term, making it easier to budget. No surprises.
- Instead of tracking multiple credit cards or loan payments each month, you have a single payment to Happy Money. Less hassle.
- Happy Money is an unsecured loan, so you don’t risk losing any property since no collateral required . The only risk is potential damage to your credit if you default.
What Are the Downsides of a Happy Money Consolidation Loan?
While debt consolidation loans offer some big perks, there are also drawbacks to consider:
- You need good credit to qualify for the best rates from Happy Money. People with fair or bad credit likely won’t qualify.
- When you close credit cards and loans, this can actually ding your credit scores temporarily.
- While you’ve consolidated payments, you still owe the full balance of the new consolidation loan. Debt discipline is still required.
- Not ideal for extremely high debt amounts
For some borrowers, the cons may outweigh the pros of a debt consolidation loan. It’s not a magic bullet and you still have to pay off the debt.
Terms and Rates
Happy Money offers competitive rates and fees:
- Interest rates range from 5.99% – 35.99% APR depending on your credit profile. The best rates require excellent credit.
- Loan terms are offered in set increments – 24, 36, 48, or 60 months. So 2 to 5 year repayment terms.
- There are no application or origination fees from Happy Money. But your existing lenders may charge closure fees.
- The minimum loan amount is $5,000. The maximum loan offered is $40,000.
- They initially do a soft credit inquiry when pre-qualifying, then a hard inquiry during formal application.
Having good credit can lower rates substantially. Happy Money’s website has a rate checker tool to see estimated rates tailored to your credit.
Alternatives to Happy Money for Debt Consolidation
While Happy Money is a solid choice, here are a few alternatives to consider:
- Banks and credit unions – Many offer personal loans and lines of credit at low interest rates, especially for good credit.
- Non-profit credit counseling – Agencies provide debt management plans with negotiated lower interest rates on debt.
- Peer-to-peer lending – Websites like Prosper and LendingClub connect borrowers with individual investors for personal loans.
- 0% balance transfer cards – Transferring balances to a 0% APR card can provide short-term consolidation.
Shopping rates from multiple lenders can help you find the best debt consolidation solution for your financial situation.
Is Happy Money the Right Choice for You?
The main point is – a Happy Money personal loan can be a great option for debt consolidation if:
- You have good credit and a steady income. This helps qualify for the lowest rates.
- You need a medium loan amount. Happy Money’s loans range from $5K – $40K.
- You want the simplicity of just one predictable loan payment. Happy Money combines all debts into their one loan.
- Having a fixed repayment term motivates you. Happy Money’s set loan terms can help you see the debt-free light.
But a Happy Money consolidation loan likely isn’t the ideal debt relief option for borrowers with bad credit or very high debts. As always, maintaining financial discipline is key – a consolidation loan won’t “fix” overspending issues long-term.
As with any lender, read many online reviews and compare debt consolidation loan rates from multiple companies. Make sure the monthly payment fits comfortably within your budget.
Overall, a Happy Money personal loan can be a smart way for some borrowers to streamline debts into one monthly bill at a lower interest rate. But carefully consider if it is the right debt payoff strategy for your unique financial situation.