The well-known investment bank Goldman Sachs will offer consolidation loans to consumers wishing to settle their outstanding debts on high-interest credit cards. Through its online platform, Marcus, the bank will offer individuals financial assistance of up to $30,000 to be repaid over a maximum of six years. With no fees and a fixed rate, this could be the perfect opportunity for people who want to consolidate their debts.
As published on Goldman Sachs’ Marcus website, annual percentage rates (APRs) of between 5.99 and 22.99% are offered. These can reduce the high interest rate of credit cards and provide people with a more affordable way to manage and pay off outstanding balances. Marcus sent codes to millions of customers who could benefit from the service, which is not yet available to the public.
Marcus’ official statement said, “The feedback we expect from the initial group of customers will help us refine the Marcus experience.” He added that a wider audience would likely be offered access to personal loans in the coming months.
It is essential for consumers to remember that while taking out a personal loan can help consolidate debt, there are also downsides. For example, paying off a credit card frees up the balance – if they’re not careful, spenders can go back into debt on top of the loans they’ve taken out. However, for savvy savers looking to reduce their debt, consolidation loans may be ideal.
If you’re interested in a personal loan, check out our curated list of top lenders.