If you have several debts and want to merge them into one loan, then the consolidated loan is the best way for you to merge your loans and manage them more effectively. There are several reasons why people consolidate loans. These include:
- Simplifying your finances to make a single monthly payment rather than following several small high interest loans.
- Use the consolidation loans to repay small, high interest loans so that you are left with only one large loan with a more favorable interest rate.
In essence, debt consolidation will help you pay off all existing debts when you combine several smaller loans into one manageable loan. You will have to pay back the money owed to your lender and you can reduce the monthly interest by allowing your lender to negotiate for a better loan.
Advantages of Consolidated Loans
If you are in a position to consolidate loans, you can benefit from various features of the loan. These include:
Reducing monthly payments
When you use a consolidated loan, it is often associated with low interest and you can benefit greatly from the loan. Your lender will negotiate for a better interest from your creditors and this will help you get a better deal.
Improve your credit score
If you are able to repay the loan on time, it will have a positive impact on your credit score. To consolidate all your debts, the first option that you have is to come up with a solid financial plan that will help you move out of the debt.
Consolidated loans are different from other loans because you are required to merge all loans into one and your lender will clear all your debts. When you designed a plan that will help you move from debts to a financially stable solution, find out from your lender regarding the duration of the loan, interest rates and other features. As a borrower; you should have a financial plan that will help you move away from debts. We will connect you to lenders in our network who will help you during the loan consolidation process. Our experienced customer support team is readily available to help you navigate through the process. You can ask as many questions as you may have before you make any decision.
How Do I Manage My Debts Using Consolidated Loans?
There are various methods that you can use during debt consolidation. Once you have your plan in place, the next aspect is to repay the loan. You can consult your lender if they are willing to be your debt manager. Once you are satisfied with the loan interest and other terms of the loan, then you can talk to your debt manager to analyze the situation. The plan will help you identify the reasons why you are in debt and how you can move away from such a situation. Your lender can help you identify the reasons why you are in debt and the ways to get out of them. In essence, they help you manage your money and not to repeat the financial mistakes you made earlier on. The features of consolidated loans include:
- Relief- the loan will give you relief from problems that arise from creditors knocking on your door. Once you have consolidated all your loans, you have a chance to manage all your debts with ease because your lender will take on all the responsibilities of the loan.
- Stay organized- consolidating loans allows you to stay organized because you can manage a single loan. You don’t have to follow up on several small loans. It is hard to follow up on several debts because you may end up missing a date or paying late. However, it is easy to pay just one bill.
- Improve credit score- the main benefit of debt consolidation is that it gives the borrower a chance to recover and build better credit history. With only one debt, you can manage the loan easily.
Types of consolidated loans
This is a type of consolidated loan that has an asset or collateral attached to it. In situations where the lender defaults the loan, the lender will sell the asset to recover the money. The common form collateral is a car or title deed. This type of loan is only available to people with good credit history. With many people having bad credit history, it has become difficult to access such loan facilities. We will connect borrowers to lenders who will finance their loan requests.
This is the opposite of secured loans. This type of loan does not have any asset or collateral put in place. We connect borrowers who do not have a stellar credit history. Your lender will clear all the loans on your behalf and you will be left with just one loan. In a conventional financial system, getting a loan with a tarnished credit history will be a tough task.
How do I get consolidated loans?
If you are looking for a way to consolidate your debts, the process is quite easy. All you have to do is visit our website, fill out a simple loan request form and send it to us. We will follow up with the loan and your lender will give you feedback as soon as your loan request is approved. Lenders have requirements, which include proof of income, valid national identity and a working checking account. Before you opt for consolidated loans, it is imperative that you meet the criteria required by your lender. Once you have supplied all the information required by your lender, then send the form to us. You can read the frequently asked questions section to get a glimpse of how the loan system operates.