The well-known investment bank Goldman Sachs will offer consolidation loans to consumers wanting to settle their outstanding debt on high-interest credit cards. Via their online platform, Marcus, the bank will offer individuals financial aid up to the sum of $30,000 to be paid back over a maximum of six years. With no fees and a fixed rate, this could be the ideal opportunity for people wanting to consolidate debts.
As published on Goldman Sachs' Marcus website, annual percentage rates (APRs) of between 5.99 and 22.99 percent are offered. These may undercut the high interest of credit cards and offer people a more affordable way to manage and pay back outstanding balances. Marcus has sent out codes to millions of customers who might benefit from the service, which is not yet available to the public.
The official statement from Marcus said, "The feedback we expect to hear from the initial group of customers will help us to refine the Marcus experience." It added that a broader audience is likely to be offered access to personal loans over the coming months.
It is vital for consumers to remember that, although taking out a personal loan can help consolidate debts, there are also downsides. For example, paying off a credit card frees up the balance - if not careful, spenders can run up debt again on top of the loans they've taken out. However, for savvy savers looking to reduce their debt, consolidation loans can be ideal.
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