Why should you opt for debt consolidation?

Why should you opt for debt consolidation?

Debt consolidation comes with an extensive range of advantages making it a near about perfect policy to get yourself out of loans and dues quickly and without any hassle. If you are someone who finds themselves shelling out hundreds of dollars every month just to clear dues, this policy can be your escape route from financial problems. Debt consolidation will not only allow you to clear off your loans as fast as possible but also, you won’t have to worry much about your monthly expenses and you can even think of getting some savings done. Read on to know how this policy works.

Simplifying debt consolidation: the mechanics behind it

Well it’s in the name, isn’t it? When you apply for this policy, what you’re doing is consolidating all your dues, credit card bills, bad loans, mortgages- everything under one account. After that is done, you will be paying a meagre amount every month (it can be bi-weekly as well, based on your convenience) at a very low interest rate till everything is cleared. The advantage that you’re getting by doing this is, you won’t have to pay the high interest rates that come with other loans, especially credit card bills. Their interest can be anywhere between 15%-20%. There are several other benefits as well.

In addition to paying off your loans quickly

• Debt consolidation enables you to streamline your finances. Before starting with this policy, you may have been paying a good amount of your paycheque just on clearing off your bill. Debt consolidation would help you save on your expenses and you can be on your way towards a debt-free lifestyle.
• If you’re repaying at a low-interest rate, you can make larger payments on your debts and expedite the process of paying them off. This can also have a positive effect on your credit score.
• If your credit score has improved, then when you apply for another loan in the future, you would be eligible for low-interest rates. 
• On another note, if you’re struggling to pay all your debts every month, with debt consolidation you can lower the amount. This would extend your loan term, but you would have more cash in your hand for the month.

But is debt consolidation ideal for me?

It all depends on your financial situation and requirement. If you’re finding yourself constantly paying off bills and loans every month and making no savings at all, then debt consolidation is the way to go. However, if you have your finances in check and always on time with your payments. You have never been late, then you may think otherwise. But consider this, debt consolidation will allow you to clear your dues at a low-interest rate than what you may be paying now, doesn’t that sound like a better option?

You can tap into your home equity too

Yes, you can use your home equity for your debt consolidation loan as well with the access of up to 80%. Get in touch with 1onefund for more details. Our team will be happy to help you.