Posted: 1 Sep '20

What Advantages Do You Gain with a Debt Consolidation Loan?

What Advantages Do You Gain with a Debt Consolidation Loan?

A debt consolidation loan can be a great way to make your payments much easier and allow you a longer time to pay down your debt if you can manage to catch the situation before things get too bad. If you have missed a few payments, that is OK; you can still qualify if you have some collateral to put against the loan. Here are some of the advantages you will have taking out a debt consolidation loan. Call us today to see if this kind of loan is for you.  


Peace of Mind 

One of the most significant benefits of a debt consolidation loan is that your life will become much easier. Not only will the collection calls stop, but you will only have one payment to manage. This payment will typically have a lower interest rate, and you will be able to pay your debt off faster than if you still had a lot of smaller, but higher interest payments. 

If you have accumulated more high-interest debt than you can handle and are fortunate enough to be able to take advantage of a debt consolidation loan, consider yourself very lucky. With a debt consolidation, you do not have to declare bankruptcy.  

No Black Mark on Your Financial Record 

A debt consolidation loan also allows you to pay down your debt in full, and it does not get reported in a way that will hurt your credit for the next seven years. For example, if you use a debt relief program you will have a similar situation to a consolidation loan, but you will be penalized for the negotiations the program makes with debtors in your name. Your credit will improve much faster because of this as well.  

Get it Together 

You should talk to our lenders about a debt consolidation loan if you have taken on more high-interest debt than you can comfortably handle. If your credit remains good enough to take advantage of this type of loan, it is a good idea to consolidate your debt before it goes too far. If you do take on one of these loans, try not to make the mistake of adding to your debt by using your cards again after they have been paid off! Contact our advisors today to get your debt together with a debt consolidation loan.