1. REDUCTION IN INTEREST RATES:
Debt Consolidation automatically reduces the interest rate a debtor would have paid if the debts were several. Debts like Credit Card Debts usually have very high interest rates, some could be as excessive as 25%. A Debtor facing this type of situation would find out that his/her debt is growing faster than he/she can pay it off. This is where a service like debtconsolidation-us.org will help. A Debt Consolidation loan will lower the interest rate payable by a Debtor in the long run.
2. REDUCTION IN MONTHLY PAYMENTS:
Debtors with numerous debts like Credit Card Debts are frequently exposed to the problem of high minimum monthly payments. This situation would be worse if the debtor cannot meet the minimum payments. If a payment is missed, the most likely penalty is that the interest rate will increase and in the long run the debtor would be submerged in an ocean of debt. The best way out of this problem is to take a consolidation loan.
3. IMPROVES CREDIT RATING:
Debt Consolidation greatly improves Credit rating. A common problem associated with People with numerous debts is a bad credit rating. When a debtor has several debts, there is a very high tendency that confusion will occur. There would be problem in keeping track of the repayment scheduled dates, minimum payment amounts, e.t.c. The consequence of this is that the debtor is more likely to experience late Payments and Defaults. This would have a negative effect on the debtor’s credit score and the Credit rating starts to drop. A debt consolidation service can solve this problem. When a debtor takes a Debt Consolidation loan, it ensures that there is only a single monthly payment. There won’t be any accidental defaults and late fees would be eliminated. This would improve the Debtor’s Credit rating.
4. ELIMINATES COLLECTION CALLS:
Debtors who enroll in a Debt Consolidation Program would automatically stop receiving Phone Calls from Creditors and Collection agencies, when this modern day harassment stops, the debtor would be in a better position to focus more on financial empowerment.
5. GET DEBT FREE FASTER:
Debtors who enroll in a Debt Consolidation Program stand a better chance of getting Debt Free Faster than Debtors repaying multiple loans and being penalized for lateness and defaults.