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Are you struggling with a personal loan payment or a credit card debt?
Are you thinking of taking out another loan to pay off your previous ones?
Before you take an irrational step, educate yourself about consolidating your debts and a consolidation loan.
What is Debt Consolidation?
In lay man terms, debt consolidation means to accumulate all the smaller debts such as personal loans, credit card payments, student loans etc. that you need to pay, into a single larger amount. Debt consolidation not only makes your monthly payments easier, as you only have to pay a single amount instead of scheduling and managing smaller individual payments, but, in many cases, it also often brings down your interest rates.
Once you have managed to consolidate all your debts, you can also opt for a consolidation loan to pay off your debts.
What is a Consolidation Loan?
After merging all your debts through debt consolidation and turning them into one larger debt, you can take out a consolidation loan to pay the larger debt off easily.
Since the consolidated loan amount is larger than the individual smaller loans, it has a lower interest rate than what you would be paying for all of the smaller loans combined. Also, the payment terms of such a loan are more relaxed and often allow for a longer payback cycle. This also cuts down on your monthly payments significantly.
Consolidation loans fall in the category of personal loans and have a repayment term that can be as long as 72 months. They are fixed rate loans with a very unlikely chance of these interest rates going up, unless you miss a couple of payments.
Please bear in mind that even though the loan has a fixed rate of interest, what you manage to get is highly dependent on your credit standing and credit score.
Is Consolidation Loan the Right Option for You?
Depending on how much you are struggling with your finances and whether you are willing to change your money management ways if given a fresh start, Consolidation Loan could be the perfect solution for you.
However, if you are not willing enough to become better at managing money matters, even a consolidation loan could keep you struggling with monthly payments. In any case, the decision solely lies with you if you want to change your ways or continue being reckless with your finances and keep struggling for the rest of your life.
If approached right, a consolidation loan can be the perfect solution for you to get out of your financial dilemmas. It gives you a second shot at better managing your finances and turn your life around.
If you are willing enough to put in the effort, Fresh Start Fast can offer their Consolidation Loan services to you.
To find out complete details, contact us now!