WHAT IS LOAD CONSOLIDATION?
This is a simple question that have been in the mouth of many people,many wants to know the meaning of the siple word-Loan Consolidation,while others wants to know why this words have turn to be the other of the day.Loan consolidation means that you use a consolidation loan to pay off your existing loans and credits. By transferring your debts to a consolidation loan you can often pay a lower rate of interest and, instead of having lots of bills to pay each month, you make one manageable payment.
WHY SOULD I CONSIDER LOAN CONSOLIDATION?
If you have built up debts on loans, credit cards and store cards then you could consider loan consolidation as a way of making payments more manageable and easier to afford.
Loan consolidation means you could swap a number of individual payments for one manageable monthly payment at a competitive rate of interest. It makes your finances simpler to manage and repayment more affordable.
LOAN CONSOLIDATION-MORE AFFORDABLE?
Debts on credit cards and store cards typically attract a high rate of interest, which means your monthly payments can mount up.
With loan consolidation you can pay off your individual creditors and secure your new loan at a more competitive rate of interest. That means you only have one manageable monthly payment.
However, you should be aware that although loan consolidation may be more convenient and affordable by spreading your repayments over a longer term, the overall amount of interest you pay will be greater.
COULD LOAN CONSOLIDATION REDUCE INTREST?
Loan consolidation is often secured lending. This means it typically uses an asset such as your house as security for your loan. Because this is less risky for the lender, interest rates for loan consolidation are usually lower than for unsecured lending - such as personal loans, car loans, credit cards or store cards.
As a result, some people choose loan consolidation so they can repay their debts at a much lower rate of interest - making monthly payments more convenient and affordable.
DOES IT MAKE LIFE SIMPLIER?
Yes, especially if you currently owe money to lots of lenders and creditors, which can make it easy to accidentally miss making a payment.
With loan consolidation you only have to remember to make one monthly payment to your lender.