4 Simple Advantages of Debt Consolidation

By Social, 20th, April 2016

20 Apr 0
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4 Simple Advantages of Debt Consolidation

One card is due the 5th each month, along with your student loans. Another bill is due on the 14th. On top of that, your medical bill just came in and you need to pay it by the end of the month. Don’t forget about your department store credit card, and your gas card… that doesn’t even include rent, the car payment, or utility bills….

Debt consolidation is the process of combining multiple unsecured debts (credit card debts, student loans, medical bills, etc.) into one controllable monthly payment.

Is debt consolidation the right choice for you?

  1. Less Stress
    Debt consolidation allows you to pay off your debt sooner. There are fewer payments each month, so there the risk is lower on missing a payment. You also have the option to pay more than the minimum payment to get out of debt sooner.
  1. Lower Interest Rates
    If most of your debt is from maxed-out credit cards, you know all too well how high interest rates can be. By getting a debt consolidation loan, you are able to transfer your debt a lower interest rate loan, which means a cheaper monthly payment.
  1. Advice for the Future
    Working with the right partner who offers perks like free consultations with experienced financial counselors will provide you with an education on mortgages, investments and credit discipline, in addition to debt consolidation.
  1. Improve Your Credit Score
    If your debt is consolidated into one place (versus being on multiple loans and credit cards), and you are able to make your payment each month, you will be able to restore your credit score over time.

 

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