How could a debt consolidation loan benefit you?
Debt consolidation is a little like putting all of your eggs into the one basket. It involves taking out a new loan to pay off a number of existing debts.
Advantages of debt consolidation
As with any type of loan, there are risks. There are also a number of ways a debt consolidation loan can benefit you. For example, such a style of loan often boasts a lower interest rate with lower payments as these are typically loans over 12 months in duration. Ultimately, this helps to make your overall finances and monthly outgoings far more manageable leading to less stress in your life!
You only have to think about the one loan
We live in an extremely busy world, which is why forgetting to pay a certain debt isn’t unheard of. With debt consolidation, you only ever have to think about the one repayment each month. This makes life a great deal easier – you can even set a reminder on your phone or laptop to help you to remember when to pay off your debt.
Lose the high interest rates
If you have a number of loans in place with high interest rates, such as credit cards, mortgage repayments and car loans, it could be a lot more cost-effective to pay these off as ‘one’ every month. You’re not only more likely to remember the one loan; you’ll also be avoiding high interest rates.
Better control of your finances
If you want to stay on track with your finances, then debt consolidation loans could be just the ticket. Instead of having to contend with multiple bills and confusing statements, you’ll concise all of your loans into one. You’ll only ever have to deal with one interest rate, one repayment amount and one set of loan fees.
Is debt consolidation right for me?
If your ultimate goal is to be debt-free, then a debt consolidation loan could be a great option for you. This is especially the case if you’re looking for a loan with lower rates, fewer payments and one simple bill.