Benefits of Debt Consolidation
Debt consolidation allows consumers to roll multiple debts into one single monthly payment; it is a great tool to help tame overwhelming debt such as student loans or credit card debt.
Consolidating your debt holds various benefits. For starters, compared to the high interest rates of credit cards, student loans, auto loans, and even medical bills, consumers can consolidate all their debts into one payment at a lower interest rate. This single payment can help organize consumers during repayment instead of handling numerous accounts at once. Debt consolidation may also improve a borrower’s credit score. Making payments on time shows consistency and active responsibility towards the debt; this consistency and responsibility will positively impact your credit score. Having a high credit score is beneficial when borrowers apply for a mortgage as it offers borrowers lower interest rates. Lastly, a single monthly payment can help ease the once straining and overwhelming debt and make repayment easier for consumers—this relief can encourage and motivate many to pay off their debt.
To help set yourself up for financial success, there are many ways to achieve debt consolidation:
- Cash-Out Refinance
- Home Equity Loan
- Debt Consolidation Loan
- Credit Card Balance Transfer
- Personal Loans
- Debt Management
- Dipping Into a Retirement or a Savings Account
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.