Debt Consolidation Loans
Are you tired of paying twelve or thirteen bills every month with different interest rates and different payments? It may be time for you to consider the benefits of debt consolidation loans. The good news is you will make one payment and you won't have to worry about varying due dates. One date to pay, one payment and one interest payment.
What is Debt Consolidation?
Debt consolidation loans are loans that are used to pay off several other bills. For example, let's say you are making payments monthly on three different medical bills, a dental bill and a personal loan. Each of these five bills has a different payment amount and a different due date. Debt consolidation means you borrow the money to pay all five of these bills off at the same time and may one payment that pays all of the lenders. This is good news if you want to save time and aggravation.
What if I Have Weak Credit?
Fortunately, debt consolidation loans are available even if you do not have the best credit in the world. Borrowers with less than stellar credit may benefit even more from this type of loan simply because they can work on rebuilding their credit at the same time. One payment a month is far easier to remember than multiple payments in a month.
What Kind of Bills can I Pay?
You can pay most types of bills with a debt consolidation loan. Typically short-term loans are paid off with these loans. Mortgages and car loans are usually not suited to these loan types, think of medical bills, credit card bills or dental bills. Typically debt like a credit card or life-insurance loans are the best ones to pay off with a single loan. If you have long-term debt such as a car or home, these are not suitable for debt consolidation loans.
How much Interest Will I Pay?
Every lender makes their own decisions about interest rates and terms of repayment. Since we are not a direct lender what we recommend you do is carefully evaluate the offers you receive and find the best offer for your needs. Keep in mind, debt consolidation loans can save you money in the long-run since you can pay off credit cards that may charge late payments and higher interest rates if you miss a payment.
Debt consolidation loans require you to verify your current income to ensure you can make regular payments. Before you accept any loan, make sure you review the terms of repayment. Keep in mind successful repayments also means the credit reporting agencies will see a good payment history and you won't have a bunch of open accounts on your credit report which also helps improve your overall credit score.