Debt consolidation loans and services provide a number of benefits, but the primary advantage is their ability to centralise all of your repayments and debt obligations into one easy-to-manage payment plan with a single creditor. One of the most difficult challenges to overcome when you’re overburdened with problem debt is the hassle associated with being pressured by multiple creditors.
Studies have shown that debt stress can cause or exacerbate physical and mental health issues. An individual who is stressed and overwhelmed with debt obligations usually will experience a decrease in productivity and may develop hectic work habits that lead to poorer organisation. By putting an end to creditor and bill collector phone calls and emails a debt consolidation program or loan can alleviate the stress and get you back on the road to recovery.
In addition to eliminating the stress of dealing with multiple creditors, according to solve my debt debt consolidation services also provide the following advantages:
Debt Counselling and Advice
The first step in obtaining a consolidation loan usually involves participating in an initial consultation at no charge. During this free session you’ll have the opportunity to describe the details of your case to a professional who will offer their guidance before advising you on whether to proceed with the route of consolidating your debts.
Revised Interest Rates
If your credit has not yet been severely damaged you may be able to obtain approval for an unsecured consolidation loan that would reduce the amount of money you would have to pay towards interest each month. However, individuals with very poor credit may have to pay higher interest but the minimum monthly payments would be more manageable. If you have poor credit you may be able to obtain more desirable interest rates by seeking a secured consolidation loan using some of your property or assets as collateral.
Reduced or Eliminated Late Fees and Penalties
Any loans or accounts you have defaulted on have probably incurred late fees and other penalties that are adding a significant amount of debt to the total sum that you owe. During the debt consolidation process these late fees and penalties can be drastically reduced and even eliminated in some cases as the consolidation company will negotiate on your behalf to reduce the overall debt as much as possible.
Finally, the end result of consolidating debts and repaying them successfully is the repair and restoration of your credit score to a respectable level. If you need motivation to make your monthly repayments faithfully just think of the financial freedom you’ll have in every facet of life once your credit is back intact and you’re able to utilise financial products like credit cards and loans with a clean slate.
This has been a professional post from Solvemydebt.co.uk