Debt Consolidation Loans
In the current turbulent financial situation, it is practical for one to live within their means. Many purchases need to be made in order for one to afford to live. Consequently, the only way one can afford to do this is to take on some debt. However, the current financial situation is not very favourable for borrowers.
This is one of the best options available to borrowers to reduce the debt burden. In addition, one is able to salvage their credit rating. This is similar to refinancing debt. It means merging all small loans into one lump. The effect is that one only makes a single payment a month. This can be quite great, especially for people who may not understand the financial jargon and want to simplify their lives. Without wasting time, below are the options available to help you consolidate your loans. Applications can be made online, no documents required (until requested) and applications are free of charge.
Debt Consolidation Loans Comparison
Find A partner for Loan Consolidation
The first place people turn to when doing loan consolidation is the bank. However, banks may not always be willing to do that for people with a low credit score. However, there are other financial institutions (such as the ones mentioned below), which are willing to offer this service and take all the risk. This is one of the best options apart from a bank. One will need to be earning and not have declared bankruptcy.
|Loan Provider||Loan Amount||Repayment Terms||Apply below|
|Boodle ||R100 - R3000||2 - 30 Days|
|RSC Loans||Up to R125 000||12 - 60 Months|
|Hop On Loans||R5 000 - 50 000||7 - 36 Months|
|U Apply||R100 - R50 000||1 - 60 Months|
Types of Consolidation Loans
Secured debt consolidation
These types of loans can be subdivided into two types. The first is secured debt consolidation. In this type of loan consolidation, one merges all their small loans into one loan. However, their existing assets such as jewellery and other personal items act as collateral. The net effect is smaller monthly payments over a longer period.
Unsecured loan consolidation
The second is unsecured loan consolidation; this is usually applied to smaller loans such as credit card charges, emergency medical bills, and others. Even if one does not pay these loans, no one collects from them. However, this can have a damaging effect on one’s credit score. Consequently, in purchases such as the first house or seeking a loan to start a business may be quite expensive in future. Loan consolidation is especially great for paying off students loans. It can be quite hard to start in life if one has to make huge payments immediately they leave school. Anyone with a student loan burden should definitely look into this mode of paying back loans. It can also help one build a good credit score early on in life.
Advantages of Consolidation Loans
- The creditors will stop the nagging calls.
This is a great way to reduce the amount of stress in one’s life. When a problem arises, the financial institution handling the loan consolidation will talk to them.
- Reduce late fees and interest rates.
When a person skips a payment, it usually results in the credit card company raising fees and the interest rate. However, with a loan consolidation, these problems are highly likely to go away permanently. Another benefit of loan consolidation is very simple. In some instances, people miss payments because it is too complicated; loan consolidation helps to make the entire process much easier and affordable. Loan consolidation is also a great way to release a co-signer. In most cases, such a person is usually a family member. This can be a great way to assist in rebuilding family finances and thus improve one’s quality of life. Sometimes, students’ loans have been known to affect job eligibility.
The decision as to whether to do loan consolidation should be purely personal. However, people should note that the amount one pays back goes up slightly higher over the extended payment period. Thus, it should be an option for those who feel completely cornered and do not want a low credit score. Building a credit score can take years and is definitely worth salvaging. Consolidation Loans is definitely a great way to lead a less complicated life.