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Debt consolidation is the
process of combining different loans (they may be of
different types, with different balances, from different
banks, with different terms, and with different Variable
Percentage Rates or VPR) into a single loan. This requires
applying for a new loan, using the funds obtained from that
loan to pay off the existing loans and then maintaining
(i.e. keeping payments current) on the new loan.
Some would say debt consolidation involves too much work. It
means tons of paperwork, negotiations, credit checks, and
all other things that applying for a loan requires. Debt
consolidation, furthermore, requires paying debt
consolidation service charges. Are all the effort and the
fees worth it?
Certainly; debt consolidation has many benefits. The
following are only a couple of the major ones:
Low Maintenance
Debt consolidation means you only have one instead of
several loans. This means easier maintenance of all your
financial obligations. Just think about it. Which is easier:
rushing off to pay three or four separate loans monthly –
all with their own due dates and minimum balance
requirements – or paying only one loan each month?
Debt consolidation means you will no longer have any
difficulty keeping track of your loan obligations. You will
no longer send a check mistakenly to Bank A when it was Bank
B that needed urgent payment. Through debt consolidation,
you only need to wait for one bill and mark one due date on
your calendar.
Better Budgeting and Planning
Isn’t it difficult to stick to your budget when bills are
always due? If you have several loans, you are probably
dealing with multiple due dates. Perhaps one loan is due in
the first week, another in the next, yet another in the
third week, and one more in the last week. Meanwhile, your
monthly salary only comes once or twice a month.
How then will you be able to pay off those bills that come
too early (before your salary arrives) and those bills that
come too late (when all your salary has been used up)? In
this scenario, it will seem like you’re doing nothing but
pay your bills; you will probably be even wary of using your
money for other necessary expenses because you’re afraid
you’ll run out of money by the time your next loan bills
come.
If you consolidate your debts, you will only have one due
date. Every month, you know that you need to pay “this and
that” amount by “this and that” date. Since you need to make
only one payment each month – and since you have a fair idea
about how much the payment is going to be – it will be much
easier to put aside a fixed amount of money for debt
servicing and thus free the rest of your money for other
necessary spending.
To apply for a debt consolidation loan you will have to
fill out a short application form. You will then receive a
FREE quote from well established, nationally recognized
lenders. You do not need to decide now whether the debt
consolidation loan is for you.
Just apply and compare the repayments to your current
situation. There is no obligation on your part. If you
decide that it is not for you, you simply do not have to
accept the offer. You have nothing to lose and everything to
gain.
20 Second Application

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