When Should I Consider Debt Consolidation Loans?

Managing multiple debts simultaneously, especially with high unfixed interests, can be overwhelming. Luckily, debt consolidation loan platforms such as Symple Lending can help you cross over to the debt-free world. Consolidating loans can help you regain financial control. When should you consider debt consolidation loans? Here are four circumstances when it’s most suitable.

1. If You Have Multiple High-Interest Debts

One of the biggest advantages of debt consolidation loans is that they have a fixed interest rate. They can also help you manage all your debts from one platform. If you have high-interest loans, for example, one with 12% and another 18%, a debt consolidation loan with a fixed 10% means you’d pay less on interest fees and have all your debts in one place.

2. If Your Monthly Installments Are Becoming Burdensome

If you have a large debt, your monthly installments may also be high and thus unmanageable. You can consider debt consolidation loans because the installments are spread relatively longer. So, you’ll have lower interest and lower monthly installments to cover.

3. To Live Debt-Free

Consider a debt consolidation loan if you wish for a debt-free living. Consolidating debts leaves you with one loan to repay, which can be a relief or a license to revert to old habits. According to the Fool, an average American household has debts over $90,000. You can break the cycle by investing in healthy financial habits to keep your household out of debt. With a single loan to think about, you can easily make repayment plans and become debt-free.

4. If You Have a Good Credit Score

In most cases, a bad credit score will jeopardize your chances of getting a debt consolidation loan. However, according to Nerd Wallet, a slight increase in your credit score, even by 50 points, can improve your chances of getting a loan consolidation facility.

You can regain financial control and minimize debt stress by consolidating your loans into one. When you repay your debt on time, your credit score improves. Ensure you talk to a Symple Lending expert to get back on track and improve your financial standing.

FAQs About Debt Consolidation Loans

1. When Is It a Bad Idea to get a Consolidation Loan

According to the American Credit Foundation, a debt consolidation loan is unsuitable if you owe more than 50% of your monthly income to debt.

2. What Happens If I Pay All My Debt Consolidation Loan on Time?

Your credit score will improve and reflect on credit score reports for ten years.

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