Turn Eight Payments Into One
If you are one of the many Americans struggling with debt, you are no doubt searching for a way to make that debt go away for good. There are several options, but one way to make things easier for yourself is to get a debt consolidation loan. This involves receiving a loan for the total amount of your debt from a consolidation loan firm, paying back all of your credit cards and other similar debts and then paying back only the loan firm at a low interest rate. You probably struggle with keeping track of many different payments each month and trying to pay them all on time (the average American makes between five and ten separate payments each month). Meanwhile, each creditor is charging you interest and fees that are tacked on to your actual balance, and if you are making the minimum monthly payment, you're probably not making much progress at paying off your debt. You might want to consider a debt consolidation loan if your interest rates are high, you are having significant trouble making your current payments each month and you are tired of creditors calling and harassing you. If you get a debt consolidation loan, a loan officer will work with you to determine the amount you need and will loan you the money to pay off your creditors. Then, you simply make one loan payment each month at a much lower interest rate than you were paying all of your other creditors, and that rate is fixed, so it cannot increase the way your credit card interest rate can. You also have the option to pay off your debt over a much longer period of time to help bring down the monthly payment even more. You could end up paying up to 50% less than you would have if you paid them off on your own. With a debt consolidation loan, you can avoid having to file for bankruptcy, which can damage your credit report. Rather than filing for bankruptcy, you are making a payment each month to one creditor and showing you've taken the initiative and are paying back your debt. If you can make your monthly loan payments on time, your credit will actually be better in the long run.