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Debt Consolidation Loans

Debt consolidation is one of the most effective strategies to make the payment of installments for credit with high interest rates. This entails consolidating many debts into an account fully waterproof repayment with an added advantage of one having to pay a relatively low interest rate.

Getting acquainted with the specific mechanism of the process is essential if one or another strategy will be chosen. You can have many types of loans owing to your credit collections. So, if you’re thinking of getting a debt consolidated loan and its complete information, then you have arrived at the right place at FocusCash platform.

How debt consolidation works?

What is debt consolidation? Consolidation of debts entails the repayment of several loans by means of a large sum which is then paid over a fixed monthly payment.

For debt consolidation to be beneficial, the interest rate you secure with a new loan or a line of credit should be higher than the previous interest rates of the respective debts. The overall savings can thus be improved by targeting at the first the consolidation of the balances that attract higher interest rates. Frantically, try to repay your loan as soon as is possible and keep your loan term to the shortest possible.

This may interest you if, for some reason, your monthly payment is a little too steep for your wallet: you might be able to get a longer loan term. Although this might appear to be cheaper in the beginning, it means that you spend more interest on the financial product.

The biggest advantage of debt consolidation loans is that many of them are fixed-rate, which implies that the interest rate that you are charged remains constant, thus the monthly payment is constant as well. Thus, if you have three credit cards credit with different interest rates and minimum repayment, you could take a debt consolidation loan to repay those credit cards. At least, you would always have to pay three different fees while in this service, it’s possible to have only one monthly fee

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What is the Difference between Debt Consolidation and Personal Loans?

Debt consolidation is a technique in the category of debt refinancing, a situation whereby the debtor borrows another loan, credit card or line of credit to eliminate higher interest debts. This aids debt repayment as the borrower only makes monthly installments toward a single loan consolidating balance owed.

But also, there is the possibility of amassing less worth paying in the long run in the event that they negotiate for a right interest rate.

This list of solutions to manage debt effectively includes personal loans as one of the options.

Personal loans are a kind of installment loans since the interest rate remains constant and the payment schedule is set in advance. Debt consolidation is an area of personal loans, which are advertised by some lenders as being designed for that purpose. Debt consolidation loans may range from a one-year loan to a seven-year loan.

Although debt consolidation is one of the customary ways through which borrowers can access personal loans, it is not the only one. Personal loans do not have to be used for a specific category or for a specific purpose, like a car or education; they can be used for nearly anything.

Benefits of Debt Consolidation

Streamlines Finances

Consolidation has the merit of reducing the number other due amounts and interest rates on which you focus and pay. In essence, consolidation can also enrich your credit score because the probability of missing or delaying the payments is significantly minimized. In addition, if one has already planned for a debt-free life, he will gain more insight into when all debts shall be cleared.

May Expedite Payoff

If your debt consolidation loan charges less interest than the individual loans would have, remember that you are now making additional payments with the extra money you may have each month to the loan’s outstanding balance. This can assist you in paying off the outstanding balance faster and would make you incur even lower interest charges over the agreed period of time. However, do not forget that the typical scenario of debt consolidation is when you have longer term loan – so, consider being very careful about paying off your debt much earlier than agreed.

Could Lower Interest Rate

It would also enable consolidation of debts and even allow for the reduction of the overall interest rate de

spite having taken mostly low-interest loans where your credit score has risen since the period of applying for other loans. To explain, extending the life of your loan with the intent of reducing your monthly payments can actually help you save money in the long run, but only if you don’t combine your loans with a long loan time frame. To know the best rate that is available, you should begin the shopping process and put much attention on the lenders who provide personal loan pre-qualification.

May Reduce Monthly Payment

While consolidating must be done carefully, it helps in the long run because future payments will continue over a new and possibly longer time frame where the overall monthly payment will be less. ADVANTAGES: From a monthly budgeting perspective, this has its benefits, but it would cost more should the projected interest rate be higher even though the rates might actually be less. When looking at the total amount of monthly payments which will be necessary for the consolidation of the loans, it is possible to use a loan consolidation calculator.

How to apply for a debt consolidation loan?

To apply for debt consolidation loans at FocusCash platform, all you have to do is follow the simple steps below:

  1. Get access to FocusCash website on your smartphone or laptop
  2. Apply for debt consolidation loans
  3. Fill an online application by using your personal set of details and submit the same
  4. Wait for the approval and after that receive funds shortly into your bank account

And, that’s all.

Looking for more information? FAQS

How long will I have to repay a debt consolidation loan?

That depends on the repayment schedule shared by debt consolidated loan lender. Therefore, it is essential on your part to apply for reliable loan offers from FocusCash and get to know all the terms and conditions in advance.

Will I be able to settle my loan earlier than the agreed term?

Yes, if you manage your finances appropriately and make timely payments, then you will settle the loan in a shortest possible time.

Can applying for a loan have a negative impact on my credit score?

Yes, you can still apply for a debt consolidated loan, even if you’re having a negative credit score in the profile. Specifically, lender’s at FocusCash are only concerned about your fixed monthly income.

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