Apply for a quick consolidation ,loan in 60 seconds. Yes you can now apply for a consolidation loan in 3 easy steps
The definition of a consolidation loans is to take out loans to the value of all your small loans or debt settling amounts and consolidate all of them. In return you only have one premium to repay with one loans interest and fees.
With the cost of living or even surviving increasing every day, more and more people end up being over-indebted, creating a situation where they go under debt review, obtain Bad Credit Records or in some cases be on ITC.
In which case turning to a consolidation loan is the next best option. By taking out one loan and settling all your small loans and debt and creating only one loan installment. By doing this you are ensuring you do not pay more than you have to on interest rates and reduce all of the overall fees payable, this will also in return assist you in ensuring you don’t miss a payment as it is only one debit instead of a few. This way you can save money and have more cash available at the end of the month. Eliminating those unexpected expenses that is caused by private loans and other debt such as admin fees and interest rates changing .
Did you know we also do bad credit loans
Consolidation Loans for People with Bad Credit
Setting up and sticking to a monthly budget is becoming more and more difficult for households with the current economic standing and every day more and more people are turning to cash loans and credit services to assist them with their day to day expenses such as to buy food and clothes which can so easily spin out of control and then people end up making more debt to pay of other debt. Before they know it they are under debt review or the owner of a bad – credit record or even placed on ITC, which is then very difficult to have removed from their names. This is a vicious cycle that people slide into very easily and it is most definitely not very easy to find your way back to making your monthly income and finances work for you.
Consolidating your debt involves a person requesting and getting settlement amounts for all his/her current debt and going to a licensed financial institution and applying for a loan to the value of all his/her outstanding loans and debt and if he/she receives approval that amount is to be taken to all companies he/she has loan funds from and settling all that debt and only repaying one loan with one installment, one debits bank fees and one loans interest rate, ensuring you do not have unexpected expenses and that you are overpaying on loans.
The Consolidation loan mostly consist of consolidating all unsecure loans but in some instances it can involve the loan being secured against an asset such as a vehicle or a house which in return serves as collateral for you to obtain a bigger loan amount where necessary. This is mostly the case when you have a really large sum that you are applying for. Providing collateral will insure the financial institution that they will be receiving their monthly payments and if you are unable to pay they can repossess the item that you have provided as collateral, sell it and in such a way still receive the funds owed to them. Also if you can provide collateral such as land or a house your interest rate might also be much lower but only in some instances and it also depends on the financial institution.
Consolidation of loans is most definitely advisable when it comes to credit card debt. Some households have more than one credit card and some of them might already have been maxed out and because of that households struggle to make payments and fall into the debt trap and in such a way that it creates a bad credit record. In these cases getting a such a loan comes highly recommended, as this will assist in clearing the credit cards of all outstanding credit and the card holders name at the same time and therefore giving the credit card holder a much better credit score. Also the interest on credit cards are known to be much higher than on most small loans and accounts and therefore the premiums are also much higher and do the loans/ accounts take much longer to finish paying off. The same applies to student loans. The repayment structure may vary but in the end most of the installments are also much higher and are paid off over a very long period of time.
Read more about our low interest personal loans. If you have two or more vehicles and you qualify for the full amount to settle all the financing then you can finish paying off the vehicles at a much lower interest rate and with just one premium. This is a great way also for a company to make their debit orders and repayments less. In these cases the financial institution will require collateral to be provided by the client or the company as the amount of the loan would be much larger than the normal loan amounts.
Current research has been done and shows that there is only 11% of the population that is taking advantage of this very effective and smart opportunity/way to manage all their debt.
As with any loan you take out at financial institutions, there are positive points and negative points. In the case of loanconsolidation there is more positive points than negative points. There are mainly two positive points, one being you will end up having only one premium to pay monthly instead of five or six and the other being that you save money every month by not paying fees on four or five loans but only paying fees of one loan and by receiving a much better interest rate to suit your pocket. This way you will save so much more and be able to get a hold on your financial situation. The negative would be that you fall back into the debt cycle by miss managing your finances. Once you have consolidated all your outstanding accounts and loans and placed yourself in a better financial situation, you should try your best to constrain yourself from making any further debt as this will defeat the object of consolidating all you debt and loans.
Some financial institutions have the ability to provide consolidations loans for people with bad credit records. These financial institutions have seen that there is a need for theses type of loans for people with bad credit records, as they only need one loan to give them the opportunity to regain full control of their financial situations. With the current economic situations people mainly do not have bad credit records because of bad financial management, but because the cost of living has raised so immensely and they are forced to pay their debt selectively. Should you be able to receive a consolidation loan from one of these financial institutions, it would give you the opportunity to change the status of your credit record from bad to good. Making the financial future for you and your family much easier.
For some people it was impossible to receive a consolidated loan because they are on ITC, but no more. There is now a few financial institutions that have the ability to provide clients with consolidation loans. Being on ITC does not necessarily mean that a client managed their funds badly, clients can be on ITC because of faulty debit orders or misunderstandings between product providers and clients. Once you are on ITC it is very difficult to get the listing removed, but depending on the situation and actions leading to that, some financial institution might just be able to assist you. Therefore it is now possible to apply for a consolidation loan.
Go to all of your debt institutions and request the settlement amounts to be supplied to you in writing. In some cases the financial institution you are applying with can request the settlement amounts on your behalf and pay it for you. In return they have the ability to get a better settlement rate. This loan needs to display the following details for you to be able to make a sound decision: all costs that are involved in the loan, each and every possible cent you will be repaying needs to be indicated on the quotation, All administrative fees need to be clearly indicated and what these administrative fees entail, if there is any insurance involved then all details regarding the insurance needs to be displayed, with every loan where there is interest applicable, make sure your quote shows the exact interest rate that you will be repaying. By getting all this information you will know which financial institution is the perfect one for you.