If you have to borrow money, either through credit cards or personal loans, it’s important you know how to manage that debt. It’s not much more complicated that keeping track of what you owe and how you will need to repay your debts. You should never let debt take over your life. You should also have enough money left over after you pay your obligations to have a decent lifestyle. One way to get out-of-control debt back under control is with a guaranteed debt consolidation financial loan.
What is a guaranteed debt consolidation financial loan?
A debt consolidation loan is one where you consolidate all your financial obligations, whether they consist of department store credit cards, charge cards or personal loans, into one new loan. The reason you consolidate all of your various loans into a new guaranteed debt consolidation financial loan is that this can reduce the amount of interest you will have to pay and will, therefore, lower your monthly payments.
As an example of this, let’s suppose that you owe money to three different creditors at 18%, 19% and 21% respectively. These are very high interest charges and at least two of them could be considered excessive.
A lower interest rate
The typical financial loan will have an interest rate varying from 6% to 17%. It doesn’t take a mathematical genius to figure out that if you could reduce all that high interest debt to say 6% or even 8% you would have a lot more money left in your pocket each month.
The process of debt consolidation
Here are the normal steps in a consolidation loan.
- Make a list of all your financial obligations. Be sure to include all your creditors.
- Add up all your debts so you will know exactly how much you owe.
- Apply for a loan. At this point, your prospective lender may contact your creditors and try to negotiate full and final settlements of your financial obligations.
- Lastly, the lender pays off all of your creditors at the amounts they agreed to in the negotiated settlement.
How to find a company that will provide a guaranteed financial consolidation loan
Probably the best place to find one of these companies is on the Internet. When you go online you can also find information that will help you select the best lender. For example, you should be able to find.
- More product information
- Quotes for the different terms, offers and interest rates
- Monthly auto loan calculator
- Debt payment calculator
Another advantage of getting a guaranteed loan online is that you can probably get it processed much faster. In many cases all you have to do is log onto the website and fill out an online application form. The company will start processing your loan in seconds so that you should get a very fast approval.
It’s important to keep in mind that debt consolidation loans require you to provide collateral to the lender – or some asset that would secure the loan. For example, you might pledge the equity in your house as collateral.
Secured debt consolidation financial loans have lower interest rates and can be repaid over an extended period of time. In fact, you might be able to take as many as 10 years to repay the loan.
How much money could you borrow?
If you get a guaranteed debt consolidation financial loan, you should be able to borrow from $5,000-$75,000. With the right amount of disposable monthly income, you might be able to get a loan for even more.