Debt Consolidation Loans is self-explanatory.
Simply get a loan to pay off (consolidate) all your existing debts for a single monthly installment.
Because you’re drowning in a pool of debt. Maybe you have multiple store accounts, credit cards, personal loans and can’t handle them anymore.
Debt consolidation might the best solution to your current financial situation.
Debt consolidation loans Benefits
I know this sounds like adding another loan on top of all your outstanding debt.
But no, debt consolidation loan replaces all your loans for one large installment.
Usually offered within longer repayment terms to help you manage your debt with ease.
This will help bring down the cost of your monthly installment.
Here’s how it works
A lender or credit provider pays off all your debts by giving you a loan best designed for your needs.
The idea of consolidating debt is to simplify your finances.
Instead of paying multiple debit orders per month, you will now be faced with a single affordable installment.
Pay the loan in an extended period of time as compared to your current debt terms.
This will automatically lower your monthly payment amount.
Debt consolidation loans will save you a lot of stress and admin fees.
The best part?
You will protect and improve your credit score during the time of the debt consolidation program.
When To Take A Debt Consolidation Loan
Life happens. You can’t really plan to drown yourself heavily in debt – it just happens.
Maybe you lost income and can’t afford to pay monthly debit orders anymore.
You can take out a debt consolidation loan when it’s absolutely necessary.
When you feel paying more than what you get every month.
Pay less, what you’re comfortable with every month through consolidation program.
Do not just take the loan because you want to spend more on other things.
Take this because you want to advance your lifestyle and get yourself out of debt.
When you’re done, make sure it doesn’t happen again.
What You’ll Need To Qualify
To apply for debt consolidation loans, you need the basic documentation for a starter.
You must provide the following:
- Proof of identification – ID Book or Smart ID
- Proof of residential address
- Proof of income – recent payslips
- Banking account in your name – recent banking statements
After that, your lender might require more documents to help with the loan.