Are you struggling with so many debts, overwhelming bills, or even piles of personal loans? It is common with lots of people these days. So, if multiple monthly payments are making your finances feel chaotic and stressful? The First Franklin debt consolidation could provide some much-needed relief. You can check them out.
Debt consolidation combines multiple debts into one easy monthly payment at a lower interest rate. It can make repaying what you owe simpler and more affordable. First Franklin is a nationwide lender that partners with banks to offer fixed-rate debt consolidation loans from $5,000 up to $100,000.
First Franklin Debt Consolidation
In this blog post, we’ll explain everything you need to know about First Franklin debt consolidation, including:
- What is First Franklin debt consolidation and how it works
- The pros and cons of their consolidation loans
- Loan requirements and qualifications
- Step-by-step instructions for how to apply
- Alternatives to consider beyond First Franklin
What is First Franklin Debt Consolidation?
First Franklin partners with lenders to offer unsecured personal loans specifically designed to consolidate higher interest debts like:
- Credit cards
- Medical bills
- Payday loans
- Personal loans
By taking out one First Franklin consolidation loan with a lower fixed interest rate, you can pay off multiple debts and simplify managing multiple payments. First Franklin handles the entire debt consolidation process, including:
- Securing loan approval and competitive rates from 5% to 25% APR
- Disbursing loan funds directly to your creditors for payoff
- Servicing the new consolidation loan and collecting your new single monthly payment
This enables you to get out of debt faster and take control of your financial situation.
Pros of First Franklin Debt Consolidation
Many benefits make First Franklin debt consolidation an attractive option:
- They can offer substantially lower rates than most credit cards, which often carry rates of 15% or higher. This saves you money over the loan repayment period.
- Your monthly payment stays the same over the 3 to 7-year loan term, making it predictable.
- The lower interest rate means more of your payment goes to the principal each month so you pay off your balance quickly.
- Making consistent on-time payments shows creditors you can responsibly manage debt and builds your credit history.
- You just make one payment to First Franklin each month instead of tracking multiple bills and dates.
- Getting accounts paid off and closed can finally end harassing calls from collectors.
Cons of First Franklin Debt Consolidation
However, there are also some potential drawbacks to consider:
- You pay an upfront fee to First Franklin of 1% to 5% of the total loan amount they arrange.
- Applying for the consolidation loan requires a hard inquiry on your credit report. Too many inquiries can temporarily damage your credit score.
- Any rewards points, cash back, or mileage associated with credit cards go away.
- While the rate is lower, paying the loan back over 5-7 years means you pay more interest costs overall.
- Interest paid on loan balances over $100k may not be tax deductible.
- Consolidating shifts your debt but that total balance remains owed, now just to a new lender.
First Franklin Debt Consolidation Requirements
To qualify for a First Franklin consolidation loan, here are the typical requirements:
- Minimum $5,000 in debt – The loan amount needs to consolidate at least $5k spread across multiple accounts.
- A credit score of 580+ – This minimum credit score is recommended for the best approval odds and rates.
- Stable income – You must have consistent employment income to show you can afford the monthly payments. Self-employed may need 2+ years of tax returns.
- Homeownership preferred – First Franklin favors borrowers who own a home with equity available.
Meeting these qualifications gets you the highest likelihood of loan approval with First Franklin. Having a cosigner or putting up collateral like your home as security can further improve your chances.
How to Apply for First Franklin Debt Consolidation
If you decide First Franklin’s debt consolidation loans are right for your situation, here is an overview of the application process:
- Gather debts – Make a list of all debts with current balances and minimum payments that you want to consolidate. This provides the total amount you need.
- Start application – Go to First Franklin’s website and begin completing the online application. Provide personal details, income, expenses, assets, debts, and desired loan amount.
- Soft credit check – After submitting initial application information, First Franklin will do a soft inquiry on your credit that doesn’t impact your score.
- Verify details – If you pass the initial pre-qualification checks, next submit income documentation, bank statements, and debt account statements for verification.
- Get a loan offer – First Franklin will extend a loan offer with your rate, fees, term length, and monthly payment amount.
- Accept the offer – If you accept the offer, First Franklin will handle disbursing funds to pay off your consolidated debts directly.
- Make payments – Once accounts are paid off, you begin making your new consolidated monthly loan payment to First Franklin.
That’s an overview of the major steps to get a First Franklin debt consolidation loan. Their website also has plenty of resources and loan calculators to estimate potential savings.
Is First Franklin Debt Consolidation a Good Choice?
Deciding if First Franklin debt consolidation loans are the right option for your financial situation takes some careful evaluation.
Here are some key factors to consider:
Your credit score – First Franklin requires a minimum credit score of 580. The higher your score, the better the interest rate you can qualify for, saving substantially on interest costs. Applicants with scores below 600 may not get approved.
Your current debt and income – Make sure your income is sufficient to afford the new consolidated monthly payment. List all debts with balances and minimum payments. Consolidating $25k or more in debt often makes the most financial sense.
Your goals – If you aim to pay off debt faster, the lower interest rate can help. If you want simplified payments, consolidation combines everything into one.
Your budget – Be realistic about the monthly payment you can handle for the 3-7-year loan term. Get a free First Franklin quote to see the payment.
Home equity – First Franklin favors borrowers who own homes. Having available home equity provides security and improves the likelihood of approval.
Your credit usage – If you tend to carry high balances on credit cards, consolidation can provide discipline against racking up new debt.
Benefits vs. costs – Make sure savings from the lower interest rate exceed any consolidation fees. Calculate total interest costs with and without consolidating.
Carefully weighing these factors will determine if a First Franklin consolidation loan is a good choice for your situation and financial goals. Be sure to compare alternatives too before deciding.
Conclusion
First Franklin debt consolidation can help handle multiple payments and high interest rates. But make sure consolidation with their fixed-rate loan makes financial sense for your circumstances after reviewing the pros and cons.
If you decide it’s the right fit, follow the step-by-step application process. And always compare alternatives like balance transfer cards and personal bank loans.
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