• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

  • About
    • About us
    • Why SeedTime?
    • Our Beliefs
    • The Story of SeedTime
  • Podcast
  • Free Book
    • Get your 1st copy free (+S&H)
    • Order multiple copies here
  • Programs
    • Login
    • Mission-Driven Millionaire
    • True Financial Freedom
    • The Real Money Method (unbudgeting) course
    • The 10x Investing course
  • Churches
  • Blog
    • The 14 Financial Tools We Actually Use
    • Our strategy for giving away millions
    • 5 Bible Verses You Should Know (Free PDF)
    • 25 Ways to Save Money
    • Why we began giving our age as a percentage
    • My Checklist To Financial Freedom (Free PDF)
    • Tithing: an honest look and what we do
    • Why I took a Sabbatical YEAR (and how I did it)
    • How to travel for FREE [161 hotel nights and 103 flights all free]
    • 4 Financial Lessons from Solomon: The Richest Man Ever
    • How to become a millionaire by turning $2k into $1 mil
    • How to get out of credit card debt (Free PDF)
    • How I made $2,145 Last Month by decluttering
    • How I Broke Free From the Rat Race (in less than 2 years)
    • We just checked off the biggest goal in our life
    • Our Honest Medi-Share Review after 14 years
    • 4 Money Habits To Start (that basically guarantee financial success)
  • Email

How To Consolidate Your Debt With Lending Club

written by Kevin Mercadante | Debt Help

This is a much cheaper, faster, and easier way to consolidate your debt rather than using traditional banks or debt consolidation companies. Lending club makes the process extremely simple and extremely cost effective -Technology is changing everything – even the well-worn process of getting a loan through a bank.

You can now streamline the whole borrowing process and consolidate your debt with Lending Club.

Lending Club is the largest and most well-known of the rising class of direct lending platforms that enable both borrowers and investors to bypass traditional banks.

It just could be the better way to get a loan for millions of people.

How Does Lending Club Work?

Lending Club is a Peer-to-Peer (P2P) lending site that enables investors to invest in the loans of the club’s borrowers. Since this is a form of direct lending between the investor and the borrower, there is no “middleman” skimming profits along the way.

That means that the interest rate charged to borrowers can be lower than what it is for typical credit cards, while investors get higher returns than they can on traditional bank investments.

Loans are risk rated, and assigned interest rates accordingly. The grade is based on credit score, income, employment, length of credit history, debt-to-income ratio (DTI) and other factors.

Lending Club started in 2007, and since that time it has handled more than $20 billion in loans, while paying nearly $600 million in interest to investors. The service has been growing at a rate of over 100% per year for the past several years. The process of P2P lending may eventually become the new normal in personal lending, especially since bank lending policies have become tighter in recent years.

The Lending Club Borrower Advantage

Getting a loan on Lending Club is a simple process:

  1. Customers interested in a loan complete a simple application at LendingClub.com (step-by-step below)
  2. Lending Club evaluates the information (with no impact to the applicant’s credit score), determines an interest rate and instantly presents a variety of offers to qualified borrowers
  3. Investors ranging from individuals to institutions select loans in which to invest and can earn monthly returns

The entire process is online, using technology to lower the cost of credit and pass the savings back in the form of lower rates for borrowers and solid returns for investors.

Lending Club offers borrowers the following advantages:

  • Easy online application
  • Low fixed rates, starting at 6.16% on the best credit grade for personal loans
  • Fixed monthly payments
  • Flexible terms
  • No prepayment penalties
  • No hidden fees
  • Friendly service
  • Personal loans up to $35,000
  • Business loans, up to $300,000 at rates starting as low as 6.16%
  • Home improvement loans

Your privacy is protected – investors and borrowers never know each other’s identities, and the site never sells, rents or distributes your information. The only information that is shared is what’s necessary to complete the requested transactions.

How to consolidate your loan

They really couldn’t make it much easier.  In fact, you can probably do it in a small fraction of the time it would take you to get a traditional debt consolidation loan.  Just follow the 4 steps below to see how to get started.

1. Figure out how much debt you want to consolidate.

Add up all the outstanding debt you have that you want to roll up into the loan.

2. Head over to LendingClub.com

Next, fill in the amount of loan you are going to get, then select “Debt Consolidation”, and then select your credit score.   If you don’t know your credit score, there is an option for ‘not sure’.  Then click “Get Your Quote”

DIY debt consolidation with lending club

3. Get your rate

Now fill out the remaining fields and then click “Get Your Rate” to see what rate they can offer you.

lending club debt consolidation loan application

4. See if you are approved and what rate they offer

Lending club debt consolidation rates

Now you can just click “Get Loan” and you will be off to the races!

get started with your debt consolidation now

A Real-life Example From a Fellow Blogger

Source: Debt Free Adventure

Fellow blogger Matt Jabs provides his own Lending Club debt consolidation loan experience on his blog, Debt Free Adventure.

Matt and his wife, Betsy, wanted to consolidate four separate loans into a single debt consolidation loan with Lending Club to lower their interest costs.

Here were the four loans they needed to payoff:

  1. Auto Loan – Capital One @ 10.5%
  2. Credit Card 1 – JP Morgan Chase @ 14%
  3. Credit Card 2 – Capital One @ 16.25%
  4. Credit Card 3 – Citigroup @ 19%

Based on their credit profile, they were able to secure an $11,000 loan from Lending Club to pay off the above debts. They were charged a rate of 9.32%, which was a serious reduction from the high interest credit cards they were paying off. They paid a total of $85 in origination fees to obtain the new loan, but ultimately saved $500 in interest expense for their efforts.

There are success stories like Matt’s all over the web, and on the Lending Club site. A lot of people are finding it faster, easier and more private to get a loan through Lending Club rather than endure the cumbersome and often embarrassing process of going the traditional bank loan route.

Some Caveats on Debt Consolidation Loans In General

Before taking on a debt consolidation loan, make sure that you are aware of a few important realities:

  • Debt consolidation isn’t a get-out-of-jail free card – once you’ve done the consolidation, you still owe the same amount of money that you did before.
  • The loan should either provide you with a lower monthly payment or a quicker payoff of the combination of the loans that you are consolidating.
  • A payment reduction should be used to increase your principal payments, so that you repay the debt consolidation faster than the original term.
  • You should not borrow money from any other sources until the debt consolidation loan is completely paid – otherwise the debt consolidation will become just another loan.
  • The overriding purpose of the debt consolidation should be to get you out of debt – not make your debt easier to live with.

If you keep those realities in mind, then a debt consolidation loan can work for you. And if it will, then Lending Club is an outstanding place to make it happen.

get started with your debt consolidation now

Have you done a debt consolidation with Lending Club?  Would you?

Related posts:

  1. 18 Beautiful Bible Verses
  2. Why I use credit cards instead of debit cards or cash
  3. My Morning Checklist
  4. What to Do if You Can’t Pay Your Taxes

About Kevin Mercadante

Kevin Mercadante has been writing about personal finance on rusbank.net, covering investing, retirement, taxes, credit cards, real estate, mortgages and insurance. Kevin brings many years of experience working in CPA firms and mortgage companies, preparing hundreds of income taxes, and helping hundreds more get the financing needed to buy or refinance a home. His entire career has been in personal finance. Kevin holds a Bachelor’s Degree in Finance from Montclair State University, and occasionally shares his financial expertise on his own personal blog, OutOfYourRut.com

IFCFH Book of the Year
"The best combination of personal finance and the Christian faith that I’ve read"
– James T. (SMRL reviewer)

In this biblically sound and grace-filled money book, you'll discover the NEW rules of money that will transform your financial life. Say goodbye to outdated advice and hello to a simple, automated system that helps you achieve better results with less time and effort.

"The best combination of personal finance and the Christian faith that I’ve read"
Learn more
We earn a commission if you make a purchase, at no additional cost to you.

Primary Sidebar

Bob Lotich

Hi there! We are Bob & Linda Lotich. Jesus followers, authors, podcasters, and undying fans of Michael Scott.

This site contains the lessons we learned on our journey from being stingy, debt-ridden fools, to being able to reach our biggest financial goal of giving $1 million by age 40, having zero debt & a paid off house by age 31, and peace with money in the process.

Now we share our best lessons with people like you, groups, and churches with our Award-winning book Simple Money, Rich Life and our 6-week video course True Financial Freedom.

Grab our book!

Simple Money Rich Life

Legal Disclaimer

The articles on this site should not be taken as financial advice. Please contact a financial advisor (or coach) for specific advice regarding your situation. Any references to interest rates, giveaways, deals, products, and websites are subject to change without notice. We try our best to keep the information current, but things are always changing so it may be different now than when it was first published. Also, all the pages on SeedTime help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others but our opinions are NEVER for sale. Find out more here.

Footer



SeedTime is a 2x Plutus award winning website.
seedtime money logo



SeedTime BBB Business Review
seedtime instagram seedtime money youtube channel seedtime money twitter with Bob Lotich


Our book Simple Money, Rich Life was named 2022 book of the year!
  • Home
  • About
  • Beliefs
  • Blog
  • Courses
  • Churches
  • Press
  • Shop
  • Affiliates
  • Login

Privacy Policy | Terms | Reviews | Earnings Disclaimer | Contact | 636-344-0438
625 Bakers Bridge Ave Suite 105-134 Franklin, TN 37067
©2007-2025 · SeedTime (Formerly ChristianPF)