If you want to get out of debt and repay your loans in an easy and convenient way that won’t take up your entire disposable income, debt consolidation might be the answer.
If you are wondering what exactly debt consolidation is, here is the low down.
One single payment
Debt consolidation is basically when you take the balance of all your outstanding debt (including personal loans and unpaid credit cards) and you apply for a loan, which covers it all. The lender repays your debt and you repay the single loan that was used to repay your debt. It is also an effective way to save on interest.
Lower payment over a longer term
You will repay a smaller monthly or weekly payment, which makes it easier for you to repay your debt and have a larger disposable income. Debt consolidation does not only decrease your monthly expenses by allowing you to pay less toward your debt but it also leaves you with a lower risk of default.