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Old 09-19-2017, 10:28 AM
jennys jennys is offline
Junior Member
Join Date: Aug 2017
Location: New York, United States
Posts: 19
Default Re: Debt Consolidation loan preferable?

The idea of consolidating your financial obligations into a single affordable loan appears attractive and workable on paper. But the practicality of a debt consolidation loan entirely depends on your conviction to make it a success. Although the rate of loan would be low and you would shell out lesser every month, the total cost of debt consolidation loan would be more. This is because the cheaper loan instalment would be due to larger duration of loan. Thus you would also need to close the loan as soon as possible and save the additional amount to be paid as interest on this loan.

Whether you find a finance company to pay for your loan or choose to manage it yourself with a single loan, in both the cases you need to ensure the timely repayment of the loan every time. Even a single late payment would hurt your credit report. A lot of planning is required before signing a debt consolidation loan. It is advisable to contact a professional such as a loan broker to seek guidance before signing the final deal. Only after assessing your credit situation you should sign the long term loan commitment. The broker may just help you plan the loan according to your repayment capability and help you become debt free.
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