Financial Freedom

4 Reasons to Get a Debt Consolidation Loan

This post may contain affiliate links and/or it may have been sponsored content. Please view our policy page for more details.

You may have heard of a debt consolidation loan and been intrigued at how this kind of loan could help you. Well, you are in luck! Debt consolidation loans are fantastic on many levels and can truly help you improve your financial situation. Take a look at the top five reasons why you should get a debt consolidation loan as soon as possible.

Debt consolidation loans can truly help you improve your financial situation. Take a look at the top five reasons why you should get a loan.

Pay Your Credit Cards

If you have credit card balances, you may be stuck in a cycle of paying minimum payments just to be hit with high-interest charges. In addition, credit cards are considered to be revolving credit meaning you are given a limit and the closer you get to that limit, the more your credit score goes down. These are two major reasons to use a debt consolidation loan to pay off your credit cards.

First, when you pay your credit card off using consolidation loans, you may be able to get a lower monthly interest on the loan, meaning you will be paying less each month and overtime. You will have a higher chance of paying off the debt when you are able to make monthly payments that impact the balance of the debt!

Also, you will be changing your debt from revolving debt to installment debt. This kind of debt has a starting point and ending date with a set payment amount each month. Installment debt looks better on your credit report and may actually instantly raise your credit score. Sounds like a perfect plan!

Lower Interest Rates

If you took out a loan years ago and have a high-interest rate, you may want to reassess what you are paying. This is especially true if your overall credit has improved since your initial loan. If you have made strides to increase your credit score, chances are, a debt consolidation loan will offer a lower interest rate than you are currently paying. This means you will save significant money over the course of the loans lifetime. Even a fraction of a percent lower will save you money!

Save Money Each Month

If you are able to lock in a lower interest rate that means your monthly payment will automatically be lower. That equates to cash in your pocket every month! Also, when you apply for a new debt consolidation loan, the lender may be able to help you secure lower monthly payments by lengthening the life of your loan. This can make your debt more manageable right away. Have a few extra dollars every month is a huge advantage and much less stressful than struggling to make each debt payment.

More Manageable

Many people have several types of ongoing debt all at once. You may have a few credit cards that have balances, student loan debt, auto loans or other personal loans. All of these loans can be hard to manage and remember! Consolidating this debt can simply make your life easier. When you take out a debt consolidation loan, you can pay all your various debts at once, leaving you with just the one, new loan to pay. You can focus on paying this loan only and get your finances back on track!

As you can see, it is very beneficial to use a debt consolidation loan. The numerous benefits are hard to overlook! So consider a debt consolidation loan today and you will benefit from these advantages too!

Instagram

How To Maintain Your Husband’s Confidence Despite Thinning Hair

Some men love their hair long, some like it clean and...

Picking out the right policy for your pet's insurance can be a bit tricky. Read these tips to know which pet insurance is right for you.
Pet Insurance: Picking the Right Policy

Our pets are often considered as an extension of our family,...

These five things to remember if you're going on a family road trip are quite important. Are you remembering them?
5 Things To Remember If You’re Going On A Family Road Trip

Going on a road trip is one of the most exciting...

These five health trends you can't ignore. They are changing the way we look at our health and our lifestyles.
5 Health Trends You Can’t Ignore

A healthy lifestyle certainly has its perks.  Not only do you...

Debt consolidation loans can truly help you improve your financial situation. Take a look at the top five reasons why you should get a loan.
4 Reasons to Get a Debt Consolidation Loan

You may have heard of a debt consolidation loan and been...

Love or Money? How About Both?

Is it better to work a low-paid job that you enjoy,...

Now is the time to start doing your Christmas shopping in order to manage your financial funds better.You can take advantage of superb deals!
Why You Should Start Your Christmas Shopping Now!

It barely feels like seconds ago that the Christmas tree was...

Household Expenses You Should Never Cut Corners On

We all love some great money saving tips, and once you’ve...

Having a well laid out kitchen can make cooking more enjoyable. Here you'll find 5 top tips on creating your dream kitchen.
Creating Your Dream Kitchen 5 Top Tips

Food is an integral part of your daily routine as it’s...

You won't be able to use R22 refrigerant anymore in your HVAC units. Does this mean replacing your air conditioning unit, too?
The Phasing Out of R22 Refrigerant: 3 Things You Need to Know

If you have an older air conditioning unit, chances are good...

Bathroom remodeling can come with many unexpected things. Here are four bathroom remodel no-nos to avoid doing.
4 Bathroom Remodel No-Nos

There are some areas in the home where we rarely venture,...

With the busy lives, we all keep, it's sometimes best to outsource tasks. These are home maintenance jobs you shouldn't feel bad outsourcing.
Home Maintenance Jobs You Shouldn’t Feel Bad Outsourcing

When your home is in a perpetual state of chaos, you...

Every entrepreneur should have a certain set of skill sets. These are the skills every entrepreneur should embrace before they start.
The Skills Every Entrepreneur Should Embrace

Becoming an entrepreneur is quite often the dream for so many...

Having creativity can become a profitable talent. Find out the importance of creative hobbies and how to take them to the next level here!
The Importance of Creative Hobbies and How To Take Them To The Next Level

If you have got creativity in the brain, then you can...

Have You Got The Right Space For Working From Home?

Working from home is becoming more and more popular. What with...

If you're going self-employed be sure you take care of these things first. These things you must do when you go self employed.
The Things You Must Do When You Go Self Employed

One of the big benefits of working for yourself, working from...

Get your family ready to watch the UGLYDOLLS family movie this weekend. Learn more about it here!
UGLYDOLLS Family Movie May Change Society

We live in a society where a person’s appearance is one...

DUMBO movie is coming to life. Learn more about this movie and a bit of information about myself here.
DUMBO New Edition Releases Soon

One of my favorite movies growing up was DUMBO. I was...

Learn more about the new Nancy Drew and the Hidden Staircase movie and enter to win your own copy. This wholesome family movie will be well liked by all.
Nancy Drew and The Hidden Staircase Review and Giveaway

Warner Bros. Home Entertainment provided me with a free copy of...