A debt consolidation loan consolidates all your loans into one account. This basically means that you take out a single loan, pay off all your other creditors, and is left with only one loan to pay. Debt consolidation will help those struggling with debt. Following are ten reasons why debt consolidation may be the right financial solution for you:
1. Better money management
Under a pile of debt, it is easy to miss one or two. However, your creditors do not forget, and will soon be making phone calls and sending threatening letters. Debt consolidation helps you manage your debt better by consolidating your payments into one account.
2. Better interest rates
A number of various debts each have its own interest rates, which, when combined, adds up to quite a hefty amount. A consolidation loan will only have one interest rate to pay, which can be significantly lower than other debt.
3. Better services
Your debt consolidation company will work with you to set up a reasonable pace and quantity to paying back your loan.
4. Better credit rating
Your credit rating will improve because you will only have one loan against your name. After you have paid off all your creditors, your credit rating will look better, so credit can be taken again.
5. Better peace of mind
There will be no more phone calls from creditors demanding payment and you will have the peace of mind in knowing that you will be paying off only one loan a month.
6. Better accounting
Having so many debts to manage can result in missed or neglected payments, which will negatively affect your credit rating. Once all your accounts are consolidated into one, you will no longer have to deal with this problem.
7. Better stress levels
If you are struggling with debt, chances are you are stressed out as well. Debt consolidation eases your stress levels by only having to deal with one loan.
8. Better finances
Debt consolidation loans usually always have lower interest rates than other debts. Instead of your monthly payments going towards paying off the interest, each payment goes towards paying the actual debt.
9. A better start
Debt consolidation offers a better start to your finances. Debt consolidation will take your old debt and zero them out. Instead of paying many debts, you are only paying one. It is a new beginning for you to start a financial free future.
10. It’s just better
So you think a debt consolidation loan is right for you? But the question is, will you qualify? Anyone can qualify for a debt consolidation loan. Your age, credit rating and assets owned will be taken into consideration.
This article was written by Debtsolver and offers tips on debt consolidation.