Debt consolidation is a loan obtained from a financial institution to repay some or all of your debts.
This solution offers the advantage of simplifying the management of your finances (a single lender, a single payment) and it generally allows you to benefit from a lower interest rate than that required by your creditors. As a result, with a single payment to make and a lower interest rate, your monthly financial burden becomes much less of a burden.
How to get a payday loan help debt consolidation?
The first step is very simple: just make an appointment with a person in charge of credit in the financial institution of your choice –visit their website. Then you have to prepare your meeting. Make sure you can answer these questions:
- What is your current financial situation?
- How much is the total amount of your debts?
- What are your income?
- What is the value of your assets (investments, equity on the property, etc.)?
Tell the truth
Before accepting your application for debt consolidation, the person responsible for the credit must first assess the risk you represent. As before a judge, it is better to tell the whole truth and nothing but the truth! If you lie, certainly your nose will not lengthen, but your credit rating will speak.
Do not wait before it’s too late!
Let’s make it clear: If your credit report is tainted, it’s a safe bet that the financial institution will not accept your request for consolidation. This is a good reason not to postpone what you have to do today! If you have debts with high interest charges each month, it makes sense to consider debt consolidation now. Thanks, do not wait to find yourself with a late payment to react! Think about your credit card balances or those that finance your in-store purchases: are they stable? They are progressing? If so, it is important to correct the situation without delay.
The mistake not to commit
Once a financial institution agrees to take the risk of lending you money, it can cancel credit cards from other creditors. If this is not the case, you will have to be cautious: in order not to make the same debt error while you repay your consolidated loan, it may be better to cancel the credit cards yourself or the least, hide them very far in a drawer …
Do not hesitate to ask for help
When debts accumulate, it is strongly recommended to consult a professional in financial institution. Together, you’ll find the right solution for your situation, whether it’s debt consolidation or another option. It is also possible to consult a trustee in bankruptcy. Asking for help is the best way to remove this heavy weight from your shoulders.