Debt Consolidation- Have your debts become a huge headache?
Are you overwhelmed by multiple debts including credit card debts and high interest loans? Are you struggling to keep track of all your debts? Are you missing payments because you keep confusing the due dates? You consolidate your debts into one low interest loan. Our lenders can help you to combine all your debts into one. You will then make single monthly payments. You can easily manage your debts after consolidating it. Our lenders can help you manage your debt in two different ways; You can either do a balance transfer or obtain a personal loan to pay off your debt.
With the balance transfer, the lender will transfer your remaining debt unto one credit card. Usually, the card you will transfer the debt unto features promotions that will help you to save on interest rates. You will enjoy interest free periods on some of the cards, and this allows you to save some cash. Although balance transfers are considered a good loan consolidation option, you will be charged transfer fees. So borrowers should take note of it.
The lender can also offer you a personal loan that will cover your debts. You can then use that loan to pay off all your debts. With the personal loan option, there are still two options. Either the lender pays off all your debts on your behalf or the lender gives you the money to pay off your debt. When the lender grants you a loan to clear your debt, you should make it a point to pay off all your debts. The temptation to use the cash to attend to other issues may be great, but you should concentrate on clearing your debt. Usually, the interest rate on loan is low, and so you can save a little on interest rates. These two options are the most popular options. However, borrowers can also use the home equity loan or the student consolidation loan to consolidate their debts.
How do I qualify for debt consolidation?
Lenders may request that you meet several qualifications when you want to consolidate your loan. These include proof of income. Lenders consider this an essential requirement because the lender wants to be sure that you can pay for the loan. Your financial status will help the lender to decide on the amount to offer you. You should also be 18 years old and above to qualify for loan consolidation. In fact, you may not be eligible for a standard loan if you are less than 18 years. Lenders do not want to grant loans to minors. It is believed that people below the age of 18 are still under the guidance of guardians and they should not be allowed to take decisions without the consent of their guardians. Loans are important financial decisions that should not be taken on a whim. They will also ask you to
show an ID card to prove your identity. They will also want to know that you are an American citizen. Our lenders do not grant loans for people who are beyond the borders of the United States. Our lenders will also request for your contact details. You should always provide reliable contact information so that the lender can reach you when the need arises.
Once you fill out the form, the lenders that you applied for will take a look at your form. Once the lenders finish reviewing your application, they’ll send over their quotes to you. The quotes will depend on the form you have submitted. Lenders will let you know the amount they are willing to grant you. This applies to borrowers who are requesting for personal loans to consolidate their debts.
When is it good to consolidate debt?
Debt consolidation is not always the best option. There are times when consolidating your debt is not profitable and may even proof expensive. When you spot these things, do not consider debt consolidation. When the debt is not huge, and you can pay it off in the next few months. Debt consolidation is ideal for people who have substantial multiple debts and can only pay it off in a matter of years. Consolidating your debt may be unnecessary when your debt is small because you will pay a transfer fee for balance transfer. There are also processing fees when you take a personal loan to clear your debt. If you have to pay these fees to save just a little on the interest rate, then it is not necessary to consolidate your credit. Your credit score also counts when you want to consolidate your debt. It is only reasonable to consolidate if your credit is good enough for you to get a 0% credit card or a low interest rate loan. Consolidating your loan is only worth it if you enjoy a 0% credit card or low interest rate loan. That is the only way you can benefit from consolidating your loan. You should also not consider debt consolidation if your debt is more than 50 percent of your income.
Debt consolidation does not provide a lasting solution to overspending. It only helps you to manage your current debt. Debt consolidation does not also mean that your debt has been cleared. You will still need to pay off the loan, so it is important to plan on how to make payments. For loan consolidation to be successful, you will need to adjust your lifestyle if you are someone to overspends. One way to make debt consolidation successful is to reduce your spending. You should take a break from your favorite online shop or at least reduce your purchase. You should also consider ignoring that expensive restaurant on the other side of the road and only enjoy those treats once in a while. One important step you can also take is to stop using your credit cards. This will help you to stop accumulating more debt. This does not mean you should completely avoid credit card usage. Some card companies will deactivate your card if it remains dormant for a long time. So you should make a small purchase every month to keep your card active.
How Can I Pay Them Back?
Consolidating your loan means, you will make monthly payments to one lender. It is important to plan the loan repayments so that you do not default on your loan. Our lenders always help you to choose the best loan repayment method to make it easier for you to repay your loan. There are two popular methods; automatic repayments and direct self-payments. With both methods, you aren’t required to go to the office of the lender to pay. With the automatic repayments, you will have to set up an automatic debit from your account to the lender’s account. Here, the money will be moved from your account to the lender’s account on the due date. Just make sure that there’s the required amount of money in your bank account for when the date of payment is. Due date is the deadline for you to make payments for each month. You and the lender will discuss the due date before the loan is approved. With the self-payments, you will pay the cash directly into the lender’s account on the due date. Most lenders encourage their borrowers to set up automatic payments because it makes payments easy. Some lenders even offer discounts to borrowers who are willing to set up automatic payments. You do not need to keep track of the due date when you choose this method.
Paying your loan on time is important if you want to keep a good reputation. Your credit score may also be affected if if you pay off the loan later than expected. Some lenders may also repay missing payments and report them to the credit bureau to affect your history. You may also pay late fees if you do not pay on time. This will be bad for you since late fees are expensive. They will create more debt for you if care is not taken.
The interest rate differs from one lender to another. That is why you should carefully review the offers from lenders before selecting a lender. Some lenders also charge fixed interest rates while others grant loans with flexible interest rates. The lender will let you know if the interest rate if the interest rate on loan is the fixed interest rate. With the fixed interest rate, you will be able to know exactly how much you will have to pay back when the date arrives. You can also include the loan payments in your monthly budget since you know the exact amount you will be paying at the end of every month. With the flexible interest rate, the rate changes every month. It is decided by the prevailing interest rate. So, the monthly payments are not pre-decided. The good thing about flexible interest rates is that you can save on interest rates for certain months. There are months when the interest rates are low allowing you to save.
The Terms You Need to Know
Of course, every lender will have terms that you will have to agree to to get their loans. The terms and conditions clarify issues on interest rates, repayment schedules, repayment methods, late fees, loan application process, discounts, and promotions. Reading what the terms are will assist you to act according to the conditions of the lender. You will also get to enjoy promotions and discounts if you know about them. We will also like to inform borrowers that we are not the lenders that you are dealing with, we merely get you in contact with reliable lenders. We only connect you to direct lenders who have a good reputation in the credit industry. We cannot influence any lender’s decision on your loan status. It is only the lender who can determine if you can apply for a loan. It is therefore important for you to cooperate with the lender.
We also encourage borrowers to submit only accurate information to lenders. Giving out accurate information will facilitate the loan request process. There is no need to worry when you are submitting your information to our website. The safety of your data is guaranteed. This is because our website features anew technology that keeps your information safe when submitted on the website.
You should try not to go back to your luxurious lifestyle after a successful debt consolidation unless your income has increased. However, if your financial status is still the same, you should not move to your old lifestyle just because you have cleared your debts. As mentioned earlier, debt consolidation is not always the best option. After reading this article, if you realize that debt consolidation will not work for you, you should consider other debt management options including bankruptcy and debt settlement.