What is a Debt Consolidation Loan?
You have heard the term, but may still wonder what is a debt consolidation loan exactly? A debt consolidation loan is when you borrow money to pay off other debts. For instance, you may owe money on a few different credit cards, on your overdraft or even for a personal loan. If you qualify for a consolidation loan, your lender will give you the loan, on the condition that the money gets used to pay off your other debts. They will often even process those payments for you. In return, you agree to close those accounts (e.g. you no longer keep those credit cards) and make payments on the new loan until it’s all paid off.
Use a Debt Consolidation Loan to Lower Your Interest Rate & Consolidate Debts Into One Monthly Payment
You don’t need to be struggling every month to make ends meet to need a consolidation loan. But, if you’re just managing to keep up with your minimum payments most of the time, or you’re not really getting ahead, then a loan to consolidate your debts might be a good option for you. The benefit of a consolidation loan is that it often lowers your overall interest rate and lets you pay off your debts with one monthly payment.
Contact Us to See if a Debt Consolidation Loan is Right for You
However, a consolidation loan might not be right for you if you know that as soon as your credit cards are paid off and your credit rating is better again, you’ll apply for new credit cards. In fact, you might end up owing double what you owe now.
Contact us or just call 1-888-527-8999 to find out about debt consolidation loans and what to watch out for if you’re considering this option to pay off your debts.