You can have multiple existing loans against your credit card which can put you at unrest and affect peace of your mind. The ever rising penal charges and interest charged on non-payment or late payment of your credit card overdue can make you ask the question as to whether you must avail a consolidated loan to remove the small ones. It is better to have a single loan with lower rate of interest than the total interest rates of the existing loans and the payment made automatically from your account. It will mean less hassle regarding maintaining multiple bills, attending calls from various creditors and remembering the different times of payments for each bill.
Do It Yourself
It is apparently attractive and tempting to avail a single loan to pay off other existing loans, but if you read between the lines, then you are paying another financial organization for something which you can do with a little bit of planning. It is all about your calculating ability and your behavioral aspect on which your financial management depends. If you follow the simple steps like creating a budget, make provisions for a debt fund, priories your payments, consider your human ego while spending, then you can curtail on many unnecessary expenditures and find a way to clear off your debts.
A Helpful Accessory
If you are still uncomfortable with your financial planning and find some drawbacks, then it is time for you to call for a debt consolidation agency. As calling does not mean hiring, you can avail the services of such companies that provide necessary and beneficial suggestions about IVA and loan consolidation for free. These proposals are often confidential and without prejudice regarding various consolidated loan options with a low rate of interest that what you are currently paying.
Feasibility Of Consolidated Loan
Remember at this point that a person with a good credit score has a better chance to avail a consolidated loan at a lower rate. So, it is essential that when you decide to take up the help of such an agency for your financial management and clearing off the existing debts problems, your previous payment schedule must not show any late or non-payment which will adversely affect your credit rating and affect the interest you will get. Since you are taking the help of a third party which will pay off your current bills on your behalf, you must adjudge the feasibility of taking such a loan as there can be a substantial penalty if you do not pay them on time.
Points To Remember
This agency works with a third party in clearing your credit card dues and does not give a loan directly, neither does it settles your debts nor negotiates. It is a tool facilitating credit card consolidation which has preset terms and condition fixed with other financial institutions and simply clears your dues, whatever is existing with the original lender, with their money which you have to pay them back for a longer time and at a low rate of interest.