Debt Consolidation Loan
When you are faced with really high interest on a large number of small loan you can get a bank to lend to lend you a lump sum of money to combine all the debts into one loan. The loan can be spread out over a longer period of time at a lower interest rate.
Pros and Cons of A Debt Consolidation Loan
1. One monthly payment - One monthly payment can save you time by paying all your bills at once.
1. High interest and fees - A consolidation loan is paying debt with debt. You need to calculate the cost to do so.
2. You must qualify - Bankers are reluctant to give out a consolidation loan without some type of security or assurance that you can repay the loan. If your credit is bad, and your income is low then you won't qualify.
3. No protection from creditor calls - If the loan is not enough to pay all your creditors then they may still be pursuing you.
4. Effect on your credit score - The credit bureaus do record all the applications that you make, so if you are applying at multiple locations you may be effecting your score.
We want you to know that suffering with your debt problems is optional. There are plenty of options for you to choose, if you are struggling to see the forrest through the trees call us today. Let us help you.