If you’re feeling overwhelmed with a moderate to a large amount of manageable debt, then a debt consolidation loan may be just what you need to finally provide some financial relief.
There are many different ways to consolidate high-interest debts into one low monthly payment. For example, you could apply for a promotional 0% interest rate credit card, and transfer all of your balances over that way. However, the promotion may expire before you are able to pay off the debts, resulting in increased interest rates once again. Not to mention, without a decent credit score (690 or higher) it is unlikely that one would qualify for 0%. So in this case, the next best option would be a fixed-rate debt consolidation loan.
With most debt consolidation loans, you don’t have to have a perfect credit score to qualify for low interest. After the application and approval process, you will receive the money needed to pay off your high-interest debts. From there, you will follow through with the agreed-upon repayment terms that are tailored to your budget and set up on a monthly installment plan.
A debt consolidation loan can also be awarded in many forms, such as a personal loan, a 401k loan, or even a home equity loan. But in any case, the best option will likely depend on your debt-to-income ratio and payment history. It should also go without saying that a debt consolidation loan is not a quick fix for much bigger underlying problems, such as poor or excessive spending habits, or even a lack of income. Consult with a financial specialist for situations that are more urgent in nature.
For many people, high-interest debt can be debilitating to those working toward a more secure financial future. And debt consolidation loans are a great way to offer them a light at the end of a very long, dark tunnel. To find out more about debt consolidation loans, contact your financial specialist at DAL Commercial Capital today.