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Debt consolidation

Try these lenders if you have a credit score around 580-600 or higher. With a credit score under 500, you can always try but options are very limited to say the least.

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5 advantages of debt consolidation loan

If you’ve huge outstanding debts and there is a pressing issue at hand, you don’t have to despair. Debt consolidation loans will provide a perfect solution. They present amazing benefits that are rare to find in other lending options.

Single monthly installment

Debt consolidation entails the acquisition of a single loan and using it to settle all the other indebted accounts. Most people own multiple credit accounts and numerous credit cards, each bearing some balances. Securing a debt consolidation loan helps you to merge everything into one source. Hence, the tragedy of having to meet multiple deadlines will be no more. You’ll just have to focus on a single monthly repayment. This, in turn, helps you to adequately manage your finances.

Reduced interest rates

Another amazing benefit of consolidated loans is that it relieves you of huge interest charges. Many debtors own multiple credit cards that are almost obsolete due to pending debts. Credit cards bear higher interest rates as compared to other forms of interest rates. By securing debt consolidation loans, you’ll be in a position to enjoy minimal interest rates which, in turn, would save you several dollars in the long-run.

Physiological benefits

Consolidated loans will give you peace of mind to concentrate on other important tasks at hand. You do not have to worry about how you’ll repay multiple loans at the end of each month. Nobody will nag you with several calls reminding you of your loan monthly instalments; you’ll only have to deal with a single creditor.

Helps improve your credit record

Consolidating your debts will greatly improve your credit profile. Remember, your credit record is your overall financial reputation. To minimize the chances of damaging your credit score, consolidate your debts into a single loan so that you’re able to make lump-sum timely repayments. A damaged financial record can jeopardize your credit movement. For instance, it might deter you from obtaining mortgage or car repair loans.

Also, consolidating your loans into a single loan can go a long way in rebuilding damaged credit scores. If you make consistent late loan repayments, your credit score can be hurt. It’s, therefore, advisable to consolidate your loans so that you are able to stay on top of repayments. This will greatly help you replenish your creditworthiness.

Long-term financial health

Multiple loans can be nagging. However, with consolidation, you are free to concentrate with a single loan. You’ll effectively manage your loans, giving you a peace of mind to concentrate on your other business. Also, consolidation helps you put your credit conduct in order.

Lauren Ward

Lauren Ward
Writer and editor

Specializing in original, well-researched web content, including blog posts, news articles and web copy. Areas of expertise include personal finance and lending. 10 years of experience as freelance writer and working at Federal Reserve Bank of Richmond.
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