Is debt consolidation good?
- Author Jason Homes
- Published January 11, 2010
- Word count 432
There is no relief like being free from the burden of any debt. If you have been struggling with a debt for long and a debt consolidation provides you relief by chalking out an affordable repayment plan there is nothing like it. Owing money can be really stressful if it is a very big amount. So, debt consolidation has its own advantages as a stress reliever. It will help you plan out your payments and also negotiate with your lender to restructure your loan.
Benefits of debt consolidation
• Lowered interest rates:In a debt consolidation program the consolidator negotiates with the lending company to reduce the rate of interest that the company is currently charging you (debtor) so that you can pay off the debt in a comfortable manner. This way more money can be applied towards the principal instead of towards the interest every month. You can also shift your loan from adjustable to fixed rate.
• A consolidated monthly payment: You will no more have to pay bills separately. Your consolidation program will combine all of the accounts in to one monthly payment. The money will then be disbursed to all creditors by the consolidation company.
• Extending due date: Usually you have a due date within which you need to make your payments. If you cross over the due date, creditors usually demand full payment of all the past dues. But by extending the due date you can take some more time to make your payments without having to pay any late fees.
• Creditor acceptance: If you are opting for debt consolidation you stand a chance to get future loans approved sooner than imagined. Lenders will know that you have gone in for debt consolidation and hence will be able to see your interest in paying back the loan.
• No extra charge: Debt consolidation has no extra charge. There is no such thing as processing or application fee. Some consolidators charge so much extra that the benefits become null automatically.
• Grace period: This is given by lenders to creditors to make them feel comfortable throughout the repayment period. This grace period is used by borrowers to strengthen their financial condition. In the grace period you no debtor is required to pay any money to the lender.
Debt consolidation is a great idea that gives financial relief to debtors. This program is ideally suited for people who need money urgently. A debt pay off calculator can be an added advantage. It will help you calculate the monthly installment to be paid within a time frame, assess your current financial condition and more.
Authors : This article has been written by Jason Holmes, a community writer of Debt Consolidation Care. He has gained a vast knowledge on debt consolidation process over the years. He has also been writing on debt pay off calculator, debt settlement, debt consolidation, credit card debt, debt consolidation loans and various other financial aspects.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Effective Strategies for Paying Off Your Mortgage Faster
- How Does Equity Release Work?
- Florida First Time Homebuyer: The Indispensable Guide of Tips, Programs, and Resources
- How to Become Debit Free?
- Sellers Concession the Closing Cost Option
- Financing Short Term rentals with DSCR loans
- Why move to Roseville CA
- Simple Interest Mortgage Advantage
- Are Low Doc Commercial Loans available in Australia
- How to Obtain a Rural Agriculture Loan Quickly and Easily
- What is a Caveat Loan?
- Tips for improving your Credit Score before getting a Home Loan
- 3 Things To Look out for With An Equity Release Mortgage
- Manage your Debts by Refinancing your Current Home Loan
- How to Get a Home Loan with Unusual Employment or Income?
- 20 Effective Debt Consolidation Loans Tips with Bad Credit
- Tips for Choosing a Non Conforming Lender
- Why is a Good Credit Rating Important in Australia?
- Most Common Ways That People Fall Into Personal Bankruptcy
- How to Choose a Consumer Credit Counseling Agency?
- Consolidate Your Debts and Take Control of Your Finances
- How to get a Home Loan due to a Bad Credit Report
- Debt Consolidation Home Loans are a Solution to Multiple Debt Problems
- Facts You Should Know About Low Doc Home Loans in Australia
- No Doc Loans from Private Lenders
- Home Loans to Consolidate Debt for People with Bad Credit
- How Can I Get a Mortgage If I Have a Bad Credit History?
- Guidelines to Fix Bad Credit Effectively Through Dispute
- Dealing with Debt – What to know about Debt Consolidation
- Investing In Yourself Before Investing in the Market