Best Debt Consolidation Loans in Indiana 2024

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Updated: November 20, 2024

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Debt consolidation loans are personal loans that borrowers use to pay off multiple debts, including student loan debt, at a lower interest rate. It's a popular method to streamline and manage debt repayment more efficiently.

MoneyGeek analyzed 29 lenders and found Truist to be the top choice for debt consolidation loans in Indiana, scoring 96 out of 100. While Truist stands out, you might also want to explore local options like Purdue Federal Credit Union and IU Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Indiana

Best Overall - Truist
Runner-Up - PenFed
Best for Affordability - Fifth Third Bank
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Indiana

Company logo for Truist
Truist
MoneyGeek Score:
96/ of 100
APR Range8.87% to 17.82%
Loan Amount RangeFrom $3,500
Repayment Terms24 to 60 months
Time to Receive FundsSame Day
Overview

Truist offers the best debt consolidation loan in Indiana with a MoneyGeek score of 96 out of 100. Several features contribute to an ideal debt consolidation loan lender, such as competitive rates, how much you can borrow, how quickly you can get your funds, the quality of service it provides and its reputation.

Truist's APR range of 8.87% to 17.82% can benefit borrowers by offering lower interest rates, which can reduce overall debt costs. Its loan amount range starting from $3,500 provides flexibility for different financial needs. Additionally, the same-day fund disbursement ensures that borrowers can quickly access the money they need to consolidate their debt.

Runner-Up for Best Debt Consolidation Loan in Indiana

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

PenFed is another solid option for a debt consolidation loan in Indiana, with a MoneyGeek score of 96 out of 100. It offers competitive interest rates ranging from 8.99% to 17.99%, which can help you save money on interest payments over time.

Flexible loan terms of up to 60 months allow you to choose a repayment plan that fits your budget. Additionally, the quick approval process means you can receive funds in as little as one to two business days, helping you consolidate your debts swiftly.

Best Debt Consolidation Loan in Indiana for Affordability

Company logo for Fifth Third Bank
Fifth Third Bank
MoneyGeek Score:
95/ of 100
APR Range8.74% to 21.74%
Loan Amount Range$2,000 to $50,000
Repayment Terms12 to 60 months
Time to Receive FundsNext Day
Overview

Fifth Third Bank offers the best debt consolidation loan in Indiana for borrowers who prioritize affordability, with a MoneyGeek score of 95 out of 100. One benefit is the availability of next-day funds, which can help a borrower quickly pay off high-interest debts. Another benefit is the flexible repayment terms, allowing borrowers to choose a plan that fits their budget and financial goals.

Its APR range is 8.74% to 21.74%, but affordability isn't just about interest. Fifth Third Bank also has no origination fees and offers rate discounts, making it a cost-effective choice for debt consolidation.

Best Debt Consolidation Loan in Indiana for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers the best debt consolidation loan in Indiana for borrowers who need a large loan amount or longer repayment terms. With a MoneyGeek score of 96 out of 100, PNC provides loan amounts ranging from $1,000 to $35,000.

Borrowers can benefit from its flexible repayment terms, which range from 6 to 60 months, allowing them to choose a plan that fits their budget. Additionally, the availability of large loan amounts means you can consolidate multiple debts into one manageable payment.

Best Debt Consolidation Loan in Indiana for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers the best debt consolidation loan in Indiana for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day funding, making it an ideal choice for those in urgent need of financial assistance.

One of its key features is the fast approval process, which can benefit borrowers by reducing the waiting time for loan approval. Additionally, its flexible loan terms allow borrowers to choose repayment plans that best fit their financial situation, ensuring manageable monthly payments.

Should You Get a Loan to Consolidate Debt in Indiana?

Using a debt consolidation loan in Indiana can simplify your finances by merging multiple payments into one. Yet, it’s not always the best option. For instance, if the interest rate on the new loan is higher than your current debts, it might not make sense. Consider your specific situation before deciding.

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    Good Credit

    Having good credit can secure better terms for a debt consolidation loan in Indiana, affecting interest rates and monthly payments.

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    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Indiana can lower your interest rates, e.g., from 20% to 10%.

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    Multiple Payments

    Combining multiple monthly payments into one with a debt consolidation loan in Indiana simplifies your finances, making it easier to manage.

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    Lower Monthly Payments

    A debt consolidation loan in Indiana can lower your monthly payments, e.g., reducing from $500 to $300 per month.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: A higher monthly payment can strain your budget further, leading to more financial stress rather than relief.
  • When you can pay off debt in a year: If you can clear your debt within a year, a consolidation loan might not be necessary. Short-term sacrifices could save you interest.
  • When your income is unstable: Unpredictable income makes it hard to commit to fixed monthly payments. This could lead to missed payments and additional fees.
  • When your DTI ratio is high: A high debt-to-income ratio can result in loan denial or unfavorable terms. Improving your DTI before applying for a debt consolidation loan in Indiana is a better strategy.

How to Get a Debt Consolidation Loan in Indiana

The average amount of personal debt in Indiana is $79,349, while the overall average debt for Americans across all states is $104,215. In Indiana, the average monthly debt translates to around $6,612.

Using a personal loan to consolidate debt in Indiana can simplify your payments and potentially lower your interest rates. Going into the process blindly can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.

  1. 1
    Review your debts and credit score.

    Account for existing debts to see which ones to consolidate, like credit card debt. Wrong choices can lead to higher interest rates. Check your credit scores and improve your credit score by paying bills on time and reducing balances.

  2. 2
    Compare loan terms from lenders.

    Compare loan terms from multiple lenders. Contact lenders to ensure loans can be used for debt consolidation. Look at APRs, loan limits, and how soon you can receive the funds.

  3. 3
    Check for extra benefits.

    Some lenders offer added features that benefit you long-term. For example, Indiana lenders like Achieve and PNC offer rate discounts.

  4. 4
    Watch out for fees and penalties.

    Some lender features can be drawbacks. Indiana lenders like LendingPoint and Discover charge an origination fee and late fee. These can impact your short- and long-term finances.

  5. 5
    Get prequalified.

    Prequalification helps borrowers understand potential loan terms without affecting their credit score. It involves a soft credit check.

  6. 6
    Complete your loan application.

    Complete your loan application by preparing necessary documents like proof of income, identification, and bank statements. This speeds up the process.

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WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN INDIANA

Lenders might deny your loan application if you have a low credit score or a high debt-to-income ratio. Before applying for a debt consolidation loan in Indiana, consider improving your credit score and reducing your existing debt.

You can also reach out to credit counseling agencies to help manage your debts better, such as Hananwill Credit Counseling or MoneySharp Credit Counseling Inc. Another option is to use a 0% APR balance transfer credit card. This type of card allows you to transfer your existing debt and pay no interest for a specified period, which can help you pay off your debt faster and save money.

Local Lenders for Debt Consolidation Loans in Indiana

One reason people look to consolidate debt is to secure lower interest rates. The average APRs you can qualify for vary between cities. For example, in Indianapolis, the average APR is 12.7%.

Another option to find the best debt consolidation loan in Indiana is to consider other local lenders. Below is a table of local lenders to help you make an informed decision.

Hoosier United Credit UnionIndianapolisFrom 10.50%12 to 60 monthsUp to $10,00098
Financial Health Credit UnionIndianapolisFrom 10%Up to 36 monthsUp to $10,00096
Indiana Members Credit UnionIndianapolisFrom 16.24%Up to 60 months$500 to $10,00092
Everwise Credit UnionIndianapolisFrom 13.873%Up to 36 monthsUndisclosed90

FAQ: Debt Consolidation Loans in Indiana

We addressed common questions borrowers have about debt consolidation loans in Indiana to help you understand how debt consolidation can simplify your finances.

What is a debt consolidation loan in Indiana?
What's the best debt consolidation loan lender in Indiana?
Can I get a debt consolidation loan in Indiana if I have bad credit?
Can a credit counseling agency in Indiana help manage debt?
When should I get a debt consolidation loan in Indiana?

MoneyGeek analyzed 29 national lenders licensed to do business in Indiana, based on a rubric that includes APR ranges, loan amounts, and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.

We score lenders differently when recommending the best for affordability, loan amounts, and fast funding.

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We conducted our analysis in September 2024.

29Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.

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