Struggling with debts? This seemingly innocent four-letter-word can be behind your sleepless nights, stresses, and bad mood. But don’t get disappointed, you are not alone. Most Americans are overwhelmed by debts. Here, the key factor is a wish to get out of debts and the right tactic. Start with counting all your debts, paying particular attention to their interest rates, and you will have a clear understanding of what you owe. Then you can consider consolidating your debts.
What Is Debt Consolidation?
Debt consolidation is a good strategy that may help you to get out of the debt circle. It presupposes paying off several debts with one loan; in other words, you take out a loan with somewhat lower interest rates, cover all your debts, and pay with one payment. As a result, you have simplified finances and save both on interest and time.
When your payments are in one place, it is much easier for you to take control of them. It may also positively impact your credit score, as instead of having multiple loans, your credit report will show one. In the long run, you lower your credit utilization ratio and have a credit score boost.
How to Get Debt Consolidation Loans?
You can apply for debt consolidation loans online by filling out a quick request form. The processing of the loan is effortless and doesn’t require special Internet knowledge. You provide some data, following the directions. Then Shinycash will do the rest of the job for you. We redirect your request to our lenders, who will get in touch with you soon. Though each of our lender companions offers his/her terms and APRs, the requirements are not so strict. At Shinycash, you won’t face hard pulls. The loans may be available to borrowers whose credit score is far from being excellent. Instead of meticulously considering every default in your credit history, our lenders consider your annual income (social payments, alimony, salary, etc.).
The Pluses of Debt Consolidation Loans
According to the FICO scoring system, when your credit score is not in a good state (below 650), the traditional lenders may require a co-signer (a person who signs the loan agreement together with the borrower equally taking responsibility for the loan repayment) to approve the loan.
Despite that, loans with a co-signer can offer favorable conditions, but they also have cons; as in any credit default, your co-signer’s credit score will also be affected and the lender can pursue both of you to pay the loan back.
Any collateral does not support debt consolidation loans. These loans are risk-free as you don’t have to worry about losing your valuable assets in the case of any credit default.
When your monthly payments remain the same throughout the loan's lifetime, you may reasonably manage your finances.
Lower Interest Rates
Debt consolidation loans have lower interest rates as compared to most credit cards and payday loans. Thus, taking out these loans to pay off your high-interest loans may really turn your poor finances around.
Whether it is a mortgage loan, credit card debt, a bill, or anything else, be sure that with the right approach and fixed mindset, you can tackle them and salute a debt-free tomorrow. You have to keep track of your spending and master good budgeting skills to avoid more debt.