When you are juggling multiple loan repayments, it is easy to get sidetracked. You may risk losing timely payments or miss a date entirely. In addition to decreasing your credit score, there can be many other repercussions.
If this sounds like your current situation, it is time you look into a debt relief loan calculator. You can nip the problem before it turns severe and take action quickly.
What to Do When Facing Financial Hardships?
Individuals in extreme financial distress can be heading toward formal insolvency. But a few options can help you manage your spiralling debt.
Some credit providers have special programs designed for circumstances like these. You can approach your lender to discuss your difficulties and negotiate a better arrangement. For instance, you can work out a flexible payment schedule, partial settlement, or interest reduction for some months.
However, this may take time, and when you have multiple payments, every second counts. So, the best solution you can consider is debt consolidation through a personal loan. These are unsecured loans with low interest rates that offer you financing within hours.
Why Go for Debt Consolidation?
With debt consolidation, you bring together all your existing debts of any kind into one. It means there are no multiple annual fees and repayment schedules. You have a single interest rate, one regular payment, and a stress-free life.
How It Works
Consider this example: You buy a new laptop at zero interest for the first 12 months. An unexpected situation comes up, and you dig into your savings. Soon, it is time to pay the interest on your laptop purchase.
Besides this repayment amount, you have ongoing loans to be paid on different dates of each month. Things spiral out of control, and you regret making any purchases in the first place. Debt consolidation helps you get your control back and get you out of this tricky situation.
You can quickly take out a personal loan and pay off these existing debts. But now, you owe the amount to a single lender. Hence, your payment schedule becomes more convenient, and your finances will be streamlined.
Pros of Combining Your Debts
Here are the primary reasons for saying that debt consolidation is the best choice to make:
- With lower interest rates, you can save money every month.
- You can borrow anywhere from $2,100 to $30,000.
- You get transparent pricing, with zero establishment fee and no ongoing charges
- Streamline your finances with a more relaxed repayment plan.
- Set your preferred term length and enjoy greater savings.
- Make extra repayments and be several steps closer to being debt-free.
- Improve your overall credit rating by easily managing your debts.
How to Find a Customised Way to Consolidate Your Debt?
Before you approach any bank that you find on Google, it is advisable to do your research. Explore the rates, terms, and other conditions. Look for a provider that puts your needs first.
Typically, a personal loan application and its approval are pretty straightforward. You can enter your preferences in the online debt relief loan calculator and get indicative rates and an idea of the deals offered by various banks. The bank will approve your application after conducting a hard credit check and getting a satisfactory report.