Debt Consolidation Loan

A debt consolidation loan is a loan that will enable you to reimburse several

creditors with one payment.

Instead of having several small payments to make every month, you will have only one payment, your debt consolidation loan payment. Debt consolidation is good way to reduce your level of debt by spreading your total monthly payment of all your creditors over a longer period.

Advantages of debt consolidation loan

  • Better interest rate.
  • Smaller monthly payments.
  • Easier to create and maintain a budget.
  • Reduce your level of debt

Disadvantages

  • Require more discipline. If after getting a debt consolidation loan you keep your credit cards, you might get yourself in more debt than before.
  • Banks or other financial institutions are more not flexible, must be able to make monthly repayment every month.

It is very important not to get additional debt once you have a debt consolidation loan

Who can take advantage of a debt consolidation loan?

Anyone can qualify. Your bank or other loan advisor will decide depending on different criteria if you can qualify. It doesn't matter if you own a house or renting, each situation are different and will be assess by your bank

The bank will make sure you can make the repayment on top of your monthly expenditure. Having a budget would be a big help to manage your personal finance.

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