Best Debt Consolidation Loans in Vermont 2024

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Updated: November 19, 2024

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Debt consolidation loans are unsecured personal loans that are used as part of a debt repayment strategy. It's a popular way to streamline and pay off debts you currently owe — like credit card or student loan debt — at a lower interest rate than what you're currently paying.

MoneyGeek analyzed 24 lenders and found PenFed to be the top choice for debt consolidation loans in Vermont, scoring 96 out of 100. Although PenFed stands out in our analysis, you may also want to contact local lending options like Vermont Federal Credit Union and Vermont State Employees Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Vermont

Best Overall - PenFed
Runner-Up - Alliant Credit Union
Best for Affordability - Wells Fargo
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Vermont

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

MoneyGeek ranks PenFed as the best debt consolidation loan lender in Vermont 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.

PenFed offers an APR range of 8.99% to 17.99%, which can help borrowers save on interest costs. Its loan amount range of up to $50,000 provides flexibility for consolidating various debts.

Runner-Up for Best Debt Consolidation Loan in Vermont

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
95/ of 100
APR RangeFrom 10.49%
Loan Amount Range$1,000 to $100,​​​​​000
Repayment Terms12 to 60 months
Time to Receive FundsSame Day
Overview

Alliant Credit Union is another solid option for a debt consolidation loan in Vermont, with a MoneyGeek score of 95 out of 100. It offers competitive interest rates, which can help you save money on interest payments over time. For example, if you have high-interest credit card debt, consolidating with Alliant Credit Union can reduce your overall interest costs.

Alliant Credit Union also provides flexible loan terms, allowing you to choose a repayment plan that fits your budget. This flexibility can make it easier to manage your monthly payments. Additionally, the quick approval process means you can access funds faster, helping you pay off your existing debts sooner and start your journey to financial stability.

Best Debt Consolidation Loan in Vermont for Affordability

Company logo for Wells Fargo
Wells Fargo
MoneyGeek Score:
94/ of 100
APR Range7.49% to 24.99%
Loan Amount Range$3,000 to $100,000
Repayment Terms12 to 84 months
Time to Receive Funds1 to 3 Business Days
Overview

Wells Fargo offers the best debt consolidation loan in Vermont for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. It has an APR range of 7.49% to 24.99%, making it a competitive option for those looking to consolidate their debts.

One benefit is that it has no origination fees, which means you won't have to pay extra costs upfront. Additionally, the availability of rate discounts can lower your overall interest rate, making your loan more affordable in the long run. Affordability isn't just about interest rates; it's also about minimizing fees and taking advantage of rate discounts.

Best Debt Consolidation Loan in Vermont 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 Vermont for borrowers who need a large loan amount or longer repayment terms. It has a MoneyGeek score of 96 out of 100. PNC provides loan amounts ranging from $1,000 to $35,000.

Flexible repayment terms can help you manage your monthly payments more effectively, making it easier to stay on track with your financial goals. Large loan amounts available mean you can consolidate multiple debts into one, simplifying your repayment process and potentially lowering your overall interest rate.

Best Debt Consolidation Loan in Vermont 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 Vermont for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day access to funds, making it an ideal choice for urgent financial needs.

One feature of this lender is its fast approval process. For example, a borrower can consolidate multiple high-interest debts into one loan without waiting for days or weeks. Another feature is its flexible loan terms, allowing borrowers to choose a repayment plan that fits their budget, whether it's 36 or 60 months.

Should You Get a Loan to Consolidate Debt in Vermont?

Using a debt consolidation loan in Vermont can simplify your finances by merging multiple payments into one. But 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 get you better terms on a debt consolidation loan in Vermont, affecting interest rates and monthly payments.

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    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Vermont can lower the interest rates you're paying, saving you money.

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    Multiple Monthly Payments

    Combining multiple monthly payments into one with a debt consolidation loan in Vermont makes financial management easier.

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    Lower Monthly Payments

    A debt consolidation loan in Vermont can help you achieve lower monthly payments, easing your financial strain.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: A higher payment makes it harder to manage expenses and save money.
  • When you can pay off debt within a year: If you can clear debt in a year, consolidation may add unnecessary costs.
  • When your income and employment are uncertain: Unpredictable income can make it difficult to meet loan payments consistently.
  • When your DTI ratio is high: A high DTI can lead to loan denial or unfavorable terms, making consolidation less effective.

How to Get a Debt Consolidation Loan in Vermont

The average amount of personal debt in Vermont is $90,960, while the overall average debt for Americans across all states is $104,215. In Vermont, the average monthly debt translates to around $7,580.

Using a personal loan to consolidate debt in Vermont 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 your existing debts to see which ones to consolidate, especially credit card debt. Choosing the wrong debts can lead to higher interest rates. Check your credit scores and improve your credit score by paying bills on time and reducing outstanding balances.

  2. 2
    Compare loan terms from lenders.

    Compare loan terms from multiple lenders to find the best deal. Contact lenders to ensure you can use the loan 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 could benefit you. For example, in Vermont, PNC and Rocket Loans offer rate discounts, which can save you money in the long run.

  4. 4
    Watch out for fees and penalties.

    Some lender features could be drawbacks. In Vermont, Lending Club charges an origination fee and Laurel Road charges a late fee. These fees can impact your short- and long-term finances.

  5. 5
    Get prequalified.

    Prequalification helps borrowers gauge their eligibility without affecting their credit score. It involves a soft credit check, which doesn't impact your credit score.

  6. 6
    Complete your loan application.

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

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

Lenders might deny your loan application due to poor credit scores or high debt-to-income ratios. Before applying for a debt consolidation loan in Vermont, check your credit report for errors and work on reducing existing debts.

You can also consider reaching out to some credit counseling agencies to help manage your debts better. Another option is to use a 0% APR balance transfer credit card. This allows you to transfer existing debt without paying interest for a set period, which can help you reduce your overall debt faster.

FAQ: Debt Consolidation Loans in Vermont

MoneyGeek addresses common questions homeowners have about debt consolidation loans in Vermont. We provide clear information on how these loans can combine multiple debts into one, potentially lowering monthly payments. Learn about interest rates, terms, and how debt consolidation can simplify your finances.

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

MoneyGeek analyzed 25 national lenders licensed to do business in Vermont, 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.

25Lenders 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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