Why Debt Consultants In Victoria May Recommend A Consolidation Loan

One of the most important aspects of working with a 4 Pillars debt consultant in Victoria is the personalized and tailored recommendations provided by our professionals. Your first meeting allows our debt consultants to review your unique financial situation, including your income, assets, and debts, and then offer options to move forward in repaying the debt and living a debt-free life.

Not everyone in the Victoria area benefits from the same type of debt management solution. For those who have an income and have the ability to repay a loan, a consolidation of the debt may be the most effective option to wipe out the debt and leave a single loan payment.

Reducing Multiple Payments

It is not uncommon for clients working with a 4 Pillars debt consultant to be paying multiple credit cards, bills, and balances on a monthly basis. Each of these has a different payment date, and these due dates may not fall at convenient times throughout the month. With multiple payments over the month, it is easy to miss a payment or forget about a payment when budgeting, resulting in additional late fees and interest charges.

By taking out the consolidation loan, Victoria borrowers simply make one payment. The loan is used to pay off the smaller balances and eliminating the risk of late or missed payments and fees.

Lower Interest Rate

A consolidation loan is typically offered at a significantly lower interest rate than those found on credit cards and other types of loans. This allows for a faster repayment of the loan amount without the ongoing snowball effect of high interest rates.

Of course, lenders look at the borrower’s credit score, which means taking out these loans before the credit score is lowered due to non-payments, missed payments, or partial payments become an issue is important.

If you are considering a consolidation loan, or wish to discuss your debt management options, contact a 4 Pillars debt consultant at 866-690-3328.