Today, most people are holding over one credit card & lots of people are taking loans such as home loan, personal loan, auto loan & etc. Different every month due of each credit card & loan may make you hard to manage your payment. This may cause late payment or miss payment occur which may impact your credit standing. The situation becomes even worse in the event you make the maximum payment each month, the interest & financial charges are stacked over the debt. In the event you are in this situation, debt consolidation is your option to bring your financial back to manageable stage.
Let review what are the major benefits of debt consolidation you can enjoy by choosing this option.
1.Consolidate multiple payment in to one every month payment
Each credit card & loan has different every month due date, with the debt consolidation, you can combine these multiple every month payment in to one. After the debt consolidation, you will only require to keep in mind one due date & make one payment, debt consolidation has made your life simpler in management your debts & the chance of being late is minimized.
2. Reduction or elimination of the accrued interest & penalties
When you are making only maximum payment each month on your credit card accounts, the interest & financial charges are stacked over the debt. Hence the total debt amount continues to grow like mushroom. What a debt consolidation program can offer is eliminates the portion of your total debt built up by interest & other financial charges; hence, the total debt amount is reduced consequently.
For example, if your $3000 debt has accumulated to $5000 which the $2000 is incurred by interest & financial charges, the debt consolidation program will first eliminate or reduce the $2000 from your debts.
3. Reduced rate of interest
The counselor will be able to negotiate on your behalf together with your creditors to get a much lower rate of interest. With the new lower rates of interest, the every month payments are also less than what was one time earlier.
For example, you have 3 credit card accounts with 18%, 12% & 9% rate of interest, you are paying an average of (18%+12%+9%) / 3 = 13% of rate of interest. If your consolidation program can reduce your rates of interest to 12%, 10% & 7%, you are paying an average rate of interest of 9.67% after your debt consolidation.
4. Your debt free life is accelerated
A successful debt consolidation program can make one debt free within 2 to 4 years & saves some funds for you. Debt free life is a dream for lots of debtors, debt consolidation with an effective repayment plan in place, it is possible for you to to recognize your dream & enjoy your debt free life sooner than you ever dream of.
5. Get rid of collection calls
By placing your debts under debt consolidation program you can avoid harassing collection calls . The consolidation company you are working with will notify your creditors that they are going to be representing you from then on.
6. Get a nice credit
Late payments & charged-off accounts make your credit document look bad & your credit score goes down consequently. With the debt consolidation program, your accounts start to get paid off finally. As a result, you will building a nice credit in to your credit document & rise your credit score.
In summary
Don't let your debt lead you in to financial crisis, consolidate all of your hard to manage every month payments in to single payment with the reduced rates of interest not only can save you some funds, it will help you to bring your financial in to a manageable level.
By: Rashid
Let review what are the major benefits of debt consolidation you can enjoy by choosing this option.
1.Consolidate multiple payment in to one every month payment
Each credit card & loan has different every month due date, with the debt consolidation, you can combine these multiple every month payment in to one. After the debt consolidation, you will only require to keep in mind one due date & make one payment, debt consolidation has made your life simpler in management your debts & the chance of being late is minimized.
2. Reduction or elimination of the accrued interest & penalties
When you are making only maximum payment each month on your credit card accounts, the interest & financial charges are stacked over the debt. Hence the total debt amount continues to grow like mushroom. What a debt consolidation program can offer is eliminates the portion of your total debt built up by interest & other financial charges; hence, the total debt amount is reduced consequently.
For example, if your $3000 debt has accumulated to $5000 which the $2000 is incurred by interest & financial charges, the debt consolidation program will first eliminate or reduce the $2000 from your debts.
3. Reduced rate of interest
The counselor will be able to negotiate on your behalf together with your creditors to get a much lower rate of interest. With the new lower rates of interest, the every month payments are also less than what was one time earlier.
For example, you have 3 credit card accounts with 18%, 12% & 9% rate of interest, you are paying an average of (18%+12%+9%) / 3 = 13% of rate of interest. If your consolidation program can reduce your rates of interest to 12%, 10% & 7%, you are paying an average rate of interest of 9.67% after your debt consolidation.
4. Your debt free life is accelerated
A successful debt consolidation program can make one debt free within 2 to 4 years & saves some funds for you. Debt free life is a dream for lots of debtors, debt consolidation with an effective repayment plan in place, it is possible for you to to recognize your dream & enjoy your debt free life sooner than you ever dream of.
5. Get rid of collection calls
By placing your debts under debt consolidation program you can avoid harassing collection calls . The consolidation company you are working with will notify your creditors that they are going to be representing you from then on.
6. Get a nice credit
Late payments & charged-off accounts make your credit document look bad & your credit score goes down consequently. With the debt consolidation program, your accounts start to get paid off finally. As a result, you will building a nice credit in to your credit document & rise your credit score.
In summary
Don't let your debt lead you in to financial crisis, consolidate all of your hard to manage every month payments in to single payment with the reduced rates of interest not only can save you some funds, it will help you to bring your financial in to a manageable level.
By: Rashid
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