In recent years, it has become more and more difficult to find a person who has never taken out a loan. No matter what is it, consumer credit for the purchase of a refrigerator, or a mortgage for an apartment. In recent years more people and the world community as a whole are becoming life loan hostages. As a result, the “lion’s share” of all borrowers in a few years changes their status and turns into debtors. The better the credit system is established, the more customers use this type of banking services. As a result, not all of the borrowers can cope with the monthly loan payments, and the number of debtors is increasing. This why US financial institutions have come up with a temporary solution for ordinary people, who is in a state of personal crisis – debt consolidation. This term is a bit similar to the usual restructuring already known before. However, there is a significant difference between them. When restructuring, we are talking about a single loan, when consolidation implies the consolidation of all of a borrower debts into one new loan.
When there is no other way out
Debt consolidation is a kind of extreme measure for the debtor. This service should be resorted to only as a last resort. If there is simply no other way out, combining all debt obligations into one new loan is seen as the only adequate solution (albeit temporary) of the existing problem. After all, the debts consolidation and one large loan processing will help to slightly reduce the monthly payments and extend the time of their payments for a while. If you experienced temporary financial difficulties, this option may not only be a last resort, but also a very good solution.
The rising needs for the debts consolidation
You maybe want to think about your arrears consolidating in case you have some of the next issues:
- very high-interest rates on your loans or credit cards;
- big and multiple debt amounts with many creditors;
- every day calls about payment arrangements for your accounts;
- adding up charges and due fees for late payments;
- Growing stress pressure overall your sick financial health.
If this is your case, then you definitely need to go for debts consolidation as soon as possible!
How your debts consolidation can help to get relieved
Consolidation has two goals:
- The first is to help you streamline with your payments, eliminate confusion in amounts and dates, and therefore avoid any delays and penalties.
- The second is saving. Combining your loans into one makes sense only if the rate on a new loan will be significantly lower than the average percentage on your current debts.
And if your current lenders do not want to restructure the loans issued to you and lower their rates, consolidation will be an excellent way out for you.
Benefits of debt consolidation
With all precautions, the process of debt consolidation may allow the borrower to reduce loan losses, because the registration of one long-term loan instead of several short-term loans will be more “cheaper”. In addition, it will reduce the burden on the family budget, since payments for such a loan will be lower. The borrower gets a clear idea of when this “credit epic” will be completed since everything will be reduced to only one credit agreement. Another undoubted advantage is doing business with only one lender and only one monthly payment instead of a few to several banks. And, of course, this is a good opportunity to save your credit rating, as the borrower will no longer be behind the payment schedule.
The positive aspects of debt consolidation include the following:
- Saving time on the monthly procedure for debt repayment. By consolidating all of its current loans, the debtor gets rid of the need to visit various financial institutions. In particular, for making the next loan payment. This, in turn, avoids the problems associated with overdue installments.
- Opportunity to save on the final overpayment. A new loan, in which all debts are connected, can be taken on more favorable terms at a lower rate. Thus, consolidation is a great way to reduce the cost of all completed loans at once.
- Adjust the monthly fee Combining existing debts makes possible to change the payment scheme. Namely – to adjust the amount of payment in the right direction, each month contributed to the debt return. The terms of a new unifying loan may allow changing a less profitable annuity scheme to a more optimal, differentiated one.
- More convenience to the debtor. The more outstanding loans, the more problems. And this is due not only to an increase in the financial burden but also to its distribution. The borrower can simply confuse how much and in which particular bank he should give in the next month. After the merger of all debts in one loan, the debtor continues to pay borrowed funds, but only to one bank.
This entire can reduces the likelihood of debt formation as a result of the borrower forgetfulness or negligence.
Features of debt consolidation
A financial institution that consolidates all borrower’s credit debts provides it with funds to pay off current loans. And the borrower remains the debtor, but only to one lender. Usually, financial institution, willing to pay all the client debts into one, can be either a commercial lending organization or an appropriate state institution. It is possible to merge without collateral loans, as well as loans received with property collateral.
Debt consolidation with collateral is more difficult than consolidating loan debts without collateral. This, in turn, is related to the procedure for transferring not only the loan debt but also the subject of the mortgage, the property of the borrower. But financial organizations are going to unite and collateral money borrowing products. Because for banks, a merger of cash loans is an opportunity to get rid of a problem loan, and accordingly, from a debtor.
Qualifying for debt consolidation solutions
You can consolidate debt with high-interest rate including credit cards and personal loans. To be able to do so, you just need to meet some simple requirements:
- your age must be between 18 and 65 years;
- be a resident of the United States;
- you must have a bank account;
- ability to provide proof of income, which is can be supported by bank transactions;
- have bank card for repayment guarantee’
- must have a cell phone and be able to receive text messages and voice calls.
By meeting all these qualifications, you can have easy access to the new one debt consolidation loan. It will not be superfluous for each debt consolidation seeker to know that loans refinancing are not available to those people whose age already exceeds the maximum level of 65 years.
Terms and rates for debt consolidation loan
Compare us with traditional lenders, you can expect competitive rates and very clear financial terms. We offer you the following solutions:
- interest rates, which is fixed to all term length;
- loans can be up to 18 months;
- installment payments payable on a monthly basis.
If you decide to take our debt consolidation loan, you are free from any possible credit check scrutiny.
How you can use debt consolidation capital
That kind of solution gives you the opportunity to use a new loan for a different reason. Bellow, you can see the most popular ways to spend debt consolidation money:
- consolidation of student loan which been issued from a few lenders;
- buying a car (doesn’t matter if it a new one or used);
- credit card consolidation;
- personal loans consolidation;
- weekend holiday or travel to the exotic country;
Just remember, that there is no limit for these funds, and whole responsibility for the money spending lay down only on your shoulders.
Take full control of your financials with our debt consolidation easy solution
When things happen, you may not see clearly your financial future. All can be looks in a blur. Your eyes just blinded with large amounts of the debt, which can come from a personal loan or credit card high-interest rates. But here you can find the best possible solution, including extended terms, and fixed low-interest rates. By taking it, you will free yourself from all the mess, coming from your current financial situation and start to keep your debt under a full control.
We give out new loans for debt consolidation very quickly, and try not to waste our and your time, but offer a truly profitable and fast solution!